KPMG FICCI North East India 2015 PDF

Emerging
North-East
India
Economically and socially
inclusive development
strategies
November 2015
KPMG.com/in
© 2015 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Foreword
North-East India, covering 8 per cent Shillong. Apart from focussing on The report highlights the potential
of India’s land and 3.1 per cent of improving the connectivity in the sectors for development,
India’s population is the country’s region, this year the summit will infrastructure and connectivity
Gateway to South East Asia. The also highlight the opportunities needs and proposes a number of
integration and development of the that improved connectivity will initiatives that need to be taken up
region is critical for India’s continued bring about and work towards an in sectors such as tourism, energy,
progress. With over 5,300 kms of action plan creating an enabling education and environment besides
international borders, it is apparent environment in areas like energy, skill connectivity infrastructure. I would
that any development strategy for development and environment. like to thank KPMG in India for
the region must necessarily include partnering with us and publishing
The Prime Ministers recent visit
strategies for collaboration; and this report.
to Bangladesh laid great impetus
connectivity must be a central theme
on improving connectivity with While preparing the report, we have
of the strategic road map.
North-East India. The renewal of the received substantial help from a
First North-East connectivity IWT protocol, MOU on the use of number of organisations. In particular,
summit: FICCI had organised the Chitagong and Mongla ports and we would like to acknowledge the
First North-East Connectivity Summit starting of bus services at key tourist support we received from Tata
in November 2014 which was entry points such as Guwahati are all Consultancy Services who helped in
attended by senior representatives moves that will give a major boost to reviewing the initial draft.
from the Government of India, State connecivity. Similarly, the framework
I am sure the North-East is going
Governments, industry, diplomats, agreement on regional transport
to become a leading contributor to
foreign delegates and multilateral signed recently with Bangladesh,
India’s national growth.
agencies like the World Bank and the Bhutan and Nepal will facilitate easy
United Nations Economic and Social movement of goods and passengers The only question is how soon can
Commission for Asia and the Pacific to and from the North-East region. we make it happen.
(UNESCAP).
North-East Implementation Agency:
The summit addressed a number Many well intended plans and
of issues pertaining to the strategies have been made for
current economic situation in the region and as a result we see
North-East India, trade potential substantial progress in many areas
between North-East India and ofthe region. If the full measure
ASEAN countries, development of success was not achieved, it is
of a North-East industrial corridor, because implementing agencies
development of roads, railways, were not in sync with the plans. It
airports, inland waterways and power is therefore of pertinent importance
sector development. A number that we develop a plan to strengthen
of infrastructure projects were the implementation capacity.
identified such as the North-East
I feel this can best be achieved by
Economic corridor, inland water
setting up a North-East Regional
transport, North-East ring road, Trans
Project Implementing Authority,
himalayan highway .
which will not only handle funding
Second North-East connectivity of the projects but also put together
summit: To take stock of the a team for hands-on monitoring of
gains since the last summit and to each project, coordinating with state
propose a way forward for thorough governments and all other relevant
development of the region, the agencies, which will implement and Ranjit Barthakur
second North-East Connectivity monitor each vertical with select Chairman
Summit is being organised in private sector partners. FICCI North-East Advisory Council
North-East, the land of seven We, at KPMG, are extremely
sisters, is a serene and ageless pleased to work with FICCI on this
picture of lush hills, with a prevailing knowledge paper, which we plan
culture unmarked by modernisation. to release at the second North-
Unfortunately, its picturesque beauty East Connectivity Summit being
is often clouded by instances of held in Shillong. Focussing on the
political unrest that keep making opportunities and required enablers
news every other day. Despite in the North-East, the report has
regular disruptions, the region has been developed based on the initial
immense potential that, if utilised in study by FICCI and the secondary
the right manner, can put North-East research by KPMG in India. The aim
India on the national as well as the is to provide a thorough analysis
global map. that can be used by investors and
policymakers to develop action plans,
This report, Emerging North-East
which can help trigger growth in the
India - economically and socially
inclusive development strategies, region.
prepared jointly by KPMG in India
and FICCI, aims to highlight the
prospects which can be explored.
The north-eastern region has the
capability to develop as a self-
sustaining economic unit of the
country, while also contributing
towards building a new and improved
India, in line with the present
government’s aspirations.
The publication provides an in-depth
analysis of the current state of
affairs and the potential of two areas
where the region’s comparative
advantage is visible tourism and
energy. It presents ideas that can
act as an impetus for policymakers
and government officials to push
for further development in the
region. We have also identified
areas of improvement and provided
recommendations that could
help bridge the gap. The report
highlights growth enablers, such as
infrastructure, education and skill
development, environment and
policy initiatives, which need to be
worked on in the interest of progress.
Further, the efforts that have set the
ball rolling in the past year the smart Ambarish Dasgupta
city initiatives, the Look East policy Partner and Head
and the BBIN initiatives have also Management Consulting,
been discussed. KPMG in India
Message
North-east India has great potential key challenge. Clearly, we need
for development and could well more action on the ground and a
become the growth engine that coordinated effort by the government
will give the next big push to the and the private sector is perhaps the
Indian economy. We believe that the need of the hour. Above all, we need
North-East could be transformed to identify an implementation model
into an economic corridor connecting that works for the region.
India, Myanmar, Bangladesh and
This report makes an attempt to
the ASEAN countries. The benefits
highlight the opportunities that the
of such a transformation would be
region represents while presenting
multifaceted, impacting not only
some ideas for enabling inclusive
India but the entire sub region,
growth.
paving the way for integration of
India’s North-East with the economic I hope the report serve its purpose
mainstream. as a catalyst for thought.
The first North-East Connectivity
Summit, held in November 2014
had highlighted the connectivity
and infrastructure requirements
to achieve the transformation.
During the last one year, we have
seen a lot of forward movement
towards removing connectivity
and developmental bottlenecks.
Major investments in infrastructure
have been announced, projects
such as the Trilateral Highway are
nearing completion and connectivity
within the region has seen Dr. A Didar Singh
significant improvements. However, Secretary General
implementation still remains a FICCI
Table of
contents
01 02 03 04
Executive Toursim Energy Infrastructure
summary
05-10 11-16 17-22 23-32

• Introduction • Overview • Overview • Overview
• Developments • Proposed ideas • Proposed ideas • Proposed ideas
during the last one
year
• Road map for
development
05 06 07 08
Education Environment Policy India at
initiatives 75: Projections
for the
North-East
33-38 39-44 45-46 47-48
• Overview • Overview • Overview • Improved
• Existing strategies connectivitiy
• Proposed ideas • Recommended
for tracking climate policy initiatives • Growing trade
change
• Sector focus
• Proposed ideas
5
Executive summary
6
Introduction
The North-East region has great efforts by individual states. The

potential to develop not just as a self- long tourism journey can start
sustaining economic unit of India but with simple, doable steps such
also contribute to the success story as: creating a North-East platform
of the country, which is reflected by for coordinated action, developing
the Prime Minister’s focus on this destinations, creating tourism zones,
region. involving local people and the private
sector.
The stretch boasts of fertile land and
water resources, an ideal habitat Each ministry of the Union
for horticulture, and a rich cultural Government is required to spend
and natural heritage that could be at least 10 per cent of its budget
explored further for development. in the North-East. The central
sector fund for the year 2014-15
The emphasis on the comparative
was INR4,84,532 crore.1 Therefore,
advantages which lie in horticulture,
about INR48,000 crore is available
handlooms and handicrafts, rural
to the region, in addition to each
industries should not distract
of the north-eastern states’ own
one from the need to boost
planned allocations. But so far, the
manufacturing and create urban
pool of unspent funds has been
jobs. In fact, ’Make in the North-
accumulating primarily because of
East’ - The North-East’s trade with
the lack of capacity to formulate
South-East Asia needs further
fundable proposals.
development. Raw materials form a
major part of its trade with Myanmar Therefore any development strategy
and Bangladesh. Meghalaya, for for the North-East should start
example, exports stone boulders, with an incisive inquiry into why
limestone and horticulture products the region could not spend the
to Bangladesh. These are processed earmarked money and use expertise
and re-imported to India as stone from various institutions to prepare
chips and cement. There still an array of doable projects.
exists scope for value addition and
To harness the full potential of these
cross-border collaboration. There
sectors, significant investments
is potential for horticulture to
will be required in upgrading the
progress as the region produces
regions infrastructure, education and
quality turmeric and ginger, exotic
skill development. All this has to be
fruits like kiwi and passion fruit,
done, keeping in mind the need for
that grow easily. But this segment
preserving the rich biodiversity of
is languishing because marketing
the region. In the end, development
arrangements are inadequate. The
comes down to implementation.
absence of efficient cold storage
The newly introduced initiatives of
chains exposes cultivators to market
the ministry for development of the
fluctuations. Tourism, too, has not
north-eastern region could energise
made much headway due to poor 1. Indian Express Article Access date, http://
the process. Much depends, on the
infrastructure development. There indianexpress.com/article/opinion/columns/make-in-
proactive role of the states. the-northeast/ accessed November 2015
are uncoordinated and fragmented
7
SWOT analysis of
north-eastern states2
Strengths Weakness Opportunities Threats
• Several tourism attractions • Lack of proper connectivity. • Development of the • Overuse and
such as Blue mountain A large part of the region handicraft industry commercialisation of eco-
(Phawngpui - Mizoram), comprises of a hilly terrain • Flood management system sensitive zones could lead to
Palak Lake (Mizoram), which makes the states to improve accessibility to depletion of resources and
Kangla Fort (Manipur), dependent on the road certain parts of the states weakening of attraction3
Majuli (river island in network which is not during monsoons, which • Regional connectivity
Assam) particularly good. Also can be developed as tourist concerns
• Presence of an ethnic tribal lesser number airports spots3
reduce connectivity3 • Land banks and land
culture each with unique • Linkages to existing availability if not addressed
customs and traditions.3 • Limited tourism tourism circuits and further will limit private sector
• Numerous tea estates infrastructure facilities. circuit development investments3
Fewer accommodation
• The north-eastern region facilities which are • Fostering coordination with • Migration of local people to
has a very well performing insufficient to cope up with other states on developing urban areas for employment
gender development index4 the demand and are of poor tourism3 prospects.
• Rich bamboo reserves quality • Trade can drastically be
• Handloom and weaving is • Scarcity of skilled and improved by improving
a skill acquired by the local unskilled labour infrastructural facilities and
community accessibility.
• Floods and landslides in
• Abundance of natural monsoons make places
resources like limestone inaccessible
as well as water for • Laws in the state like land
hydropower potential3 acquisition and transfer
• Ideal climate conditions need to align with a
• Safe and clean, pollution vision for Public Private
free environment. Partnership (PPP) and make
the environment conducive
for investments3
• Projects delayed in
implementation causing
development lags
• Landlocked states.
2. KPMG in India and FICCI analysis 2015

3. http://mdoner.gov.in/content/report-studies-ner accessed on September 2015
4. http://www.researchgate.net/publication/228226356_Human_Development_in_North_East_India_-_A_Critical_Appraisal
8
Developments during the last one year
A number of initiatives have been Development Programme in North- and Nepal (BBIN) permit to travel
taken in the last year and progress East (SARDP-NE), the Trans-Arunachal unobstructed through borders
has been made. For example, the highway is being developed. Under between Bangladesh, Bhutan, India
government has announced plans the BBIN initiative, a subregional and Nepal. Similarly, bus services
of investing INR92,000 crore for Motor Vehicle Agreement that allows with Bangladesh have improved.
development of roads and railways. buses and later private vehicles
Under the “Special Accelerated Road with a Bhutan, Bangladesh, India
9
Road map for development

• Create a North-East tourism development authority to develop circuits, associated infrastructure, and
Short-term steps
market North-East tourism
• Establish an ecotourism certification authority and identify eco-sensitive areas
• Creating a portal for promoting homestays
• Promote specific cultural circuits for international tourists
• A thorough North-East tourism guide book and web portal
• Implement North-East ecotourism guidelines, certification, and identify ‘eco-sensitive’ areas
• Focus on capacity building, and skill development in the tourism space based on anticipated demand.
Long-term steps
Tourism • Evaluate and rope in leading hotel chains to set-up hotels (2-5 star) in various regions in the North-East
• Create convention facilities across major North-East cities to attract international exhibitions
• Create linkages between circuits in different states
• Focus on wayside amenities, emergency responses, medical facilities, mobile and internet connectivity in
several circuits.
Short-term steps
• 25 per cent of power procurement from Bhutan should be allotted to North-East5
• Include Sikkim in the North-East power grid
• Strengthen the link between the eastern and north-eastern grid
• Adequate transmission capacity connecting North-East India with Bhutan should be put in place
• Focus on regional small scale hydro policy.
• Set-up Shale Oil and Gas Authority dedicated to the North-East
Long-term steps
Energy • Facilitate land acquisition for growth of small hydro projects
• Strengthen intraregional Transmission And Distribution (T&D) capacity and add more 400KV
transmission lines
• Take up PPP projects for off grid solar energy to electrify villages
• Set-up projects like using solar eco train to connect environmentally sensitive areas like Kaziranga.
Short-term steps
• Encourage formation of cooperatives and Self Help Groups (SHG’s) for commercial purposes of handlooms
and handicrafts.
• Training of handicraft artisans through existing vocational institutions/industrial training institutes/
polytechnics, etc. to bring about fruitful employment.
• Training of artisans/SHG leaders/NGOs in capacity building.
Small scale
Long-term steps
Industries • Implementation of centrally sponsored schemes for the development of sericulture and the silk industry.
• Catalytic Development Programme (CDP) five year plan should provide a thrust, inter alia, to the
development of sericulture.
• Design and technical upgradation in the handlooms and handicrafts sector.
5. Ficci Report 2014 First North-East Summit
10
• Create a project development authority on lines of the Delhi-Mumbai Economic Corridor for the North-East
Short-term steps
economic corridor
• Identify core economic activities for each node and design a master plan for the same
• Survey the North-East Ring Road, declare the project as a national project and allocate funds
• Set-up a River Development Authority to implement a broad Inland Water Transport (IWT) project
• Negotiate with Myanmar, Bhutan and Nepal for road connectivity
• Dredging and channel stabilisation work of rivers Brahmaputra and Barak.
• Roads: Complete the proposed roads connecting Tawang and Tashigang, develop NH 53 (Imphal-Jiribam),
Long-term steps
Infrastructure Aizwal Champai as four lane expressways, Stilwell road from Ledo to Myitkyina, Tura-Jamalpur road and
Sabroom-Chittagong road
• IWT: Develop 20 ports in Brahmaputra and Barak with a township, industrial area rail and road
connectivity
• Airports: In the first phase operationalise six airports; Rupsi, Shella, Kamalpur, kailashar, Khowai and
Tezu; six additional airports in phase II
Short-term steps
• Revisit norms for granting permissions for setting up medical colleges and engineering colleges
• Identify regions in North-East for setting up skilling centres, technical institutions, medical institutions
through the hub-spoke model
• Each ITI in the region should identify core courses of focus.
• Develop eight knowledge hubs across the region
Long-term steps
Education • Set-up one engineering college in each district through PPP/government funding and look at setting up a
North-East Technical University
• Set-up 29 medical colleges through government funding/PPP mode
• Set-up a North-East Skill University with funding from the central government
• Set-up seven centres of excellence to focus on important skill areas as hubs and develop smaller outreach
centres to be linked to those hubs.
Short-term steps
• Draft a uniform environment policy across the North-East

• Set-up joint management groups for creating a forest resource management plan and implementing the
schemes
• Social forestry initiatives near water bodies
• Sustainable water usage plan focussing on inland water transport, fisheries and hydro power.
Long-term steps
Environment
• Reassess the forest classification system on carbon trading involving North-East states
• For conserving eco hotspots, create dedicated animal corridors, by creating overhead bridges/shifting
roads.
11
Tourism
Overview
Virtually unexplored, the North-East However, the region has so far

offers distinct opportunities in almost been constrained from achieving its
all major areas of tourism such as full potential due to lack of proper
adventure, eco-tourism, wildlife, infrastructure (a big bottleneck being
wellness tourism, tea tourism, the lack of adequate accommodation
pilgrimage and cultural tourism. in the potential tourist destinations),
inadequate marketing, poor brand
With more than 220 ethnic groups
perception and brand recall, travel
with equal number of dialects,1 the
permit procedures, scarcity of skilled
region is one of the most culturally
manpower and absence of a broad
diverse in the world. Apart from this,
tourism policy for the region as a
the region also has a large number
whole.
of historical and religious sites of
great significance. Its close proximity A number of opportunities exist to
to the South-East Asian Tourism Hub develop the tourism potential of the
is another added advantage. North-East providing incentives to
the private sector to get involved in
a major way, creation of regional and
international circuits and shaping
skilled manpower for the industry.
1. Walk through india, http://www.

walkthroughindia.com/location/north-east-
india-an-unexplored-slice-of-paradise/
12
Current status of tourist arrivals in several circuits.4 Quality of tour Tourist information centres
and travel services also varies Many states have tourist
North-east accounts for less than between the states while in states information centres located in
1 per cent of India’s total tourist like Sikkim, they are very active and the important metros (particularly,
arrivals.2 A huge chunk of tourism in handle tourist services efficiently, in Kolkata and Delhi). However
the region comprises of domestic some other states, there is a lack of there are only limited number of
tourists. These arrivals have seen a organised tour operators. Tourism information centres within the
steady rise during the last few years. experiential facilities are generally states, Assam being the only state
While foreign tourist arrivals have non-existent. Our analysis of the which has a good number of tourist
also grown, the numbers are still existing tourism infrastructure in information centres3, located within
very small, with less than a lakh of each state is given below. the state. None of the tourist
foreign tourists visiting the region in
information centres run by the
2013.3 Destination development
state governments are equipped to
In 2013, Sikkim attracted the Planned destination development provide thorough information about
most number of foreign tourists initiatives have not been taken up the North-East region as a whole.5
(31,689) while Assam attracted in any of the tourist destinations. In
the most number of domestic several of them, development has Wayside amenities
tourists (4,339,485).2 Arunachal taken place in a haphazard manner There are hardly any wayside
Pradesh, a state with immense with little focus on preserving and amenities while travelling to tourist
tourism potential attracted only developing the core attractions destinations. This is an area which
about 10,000 foreigners and about of the destination. It seems majorly needs improvement,
100,000 domestic tourists while necessary to take up planned particularly in view of the long
states like Nagaland and Mizoram destination development projects travelling time within the state and
attracted less than one lakh tourists encompassing tourist amenities, sparse population in many of the
(foreign and domestic combined).3 recreation facilities, healthcare, etc. tourist circuits.
The primary attractions for tourists
in the North-East are nature/wildlife, Hotels and restaurants Destination amenities
culture and religion. Several tourist destinations in the Destination amenities like souvenir
region suffer from an inadequacy of shops, restaurants, recreation
Status of tourism infrastructure accommodation facilities. Assam, facilities, etc. are lacking across the
one of the most diverse states in region. Other facilities like banking
Tourism infrastructure includes the region offers a large number of
accessibility, accommodation, and money exchange facilities also
rooms across various categories need to be put in place.
restaurants, tourist information of hotels and resorts. The largest
centres, tour and travel services, concentration of hotels and resorts
tourist guides, shopping facilities, in Assam are in Guwahati and
banking and money exchange, Kaziranga followed by Dibrugarh,
tourist safety, tourism police, other Jorhat, Tinsukia, and Silchar3. Apart
facilities and services. from this, a number of tourist
There are major gaps in the lodges have come up in different
tourism infrastructure in the region. locations across the state. It has
Accessibility and smooth travel is an only one five star hotel in Guwahati
area where huge investments are while four more are coming
required. Barring a few destinations/ up . Apart from a few facilities
cities, accommodation facilities in Guwahati and Kaziranga other
are also a big challenge in terms accommodation facilities need to be
of availability and quality. Wayside upgraded in terms of infrastructure,
amenity centres are non-existent service quality, eco friendliness, etc.
2. Compiled by Datanet India from: Ministry of

Tourism, Govt. of India.
3. Analysis conducted by FICCI, 2015
4. http://mdoner.gov.in/, Tourism Development
approach and strategy
5. North-East Tourism Master Plan,
commissioned by north-eastern Council and
prepared by TCS
13
Proposed ideas
A number of tourism development is also funding a number of tourism

projects funded by various projects in the region. Over and
central ministries and state above the existing projects, certain
governments are in various stages steps need to be taken to enhance
of implementation or are being the sector further, which are listed
planned. Apart from the Ministry of below.
Tourism, the north-eastern Council
Tourism strategy for the region Marketing strategy • Target international tourists by
promoting specific cultural circuits
The tourism development strategy Since tourism in the North-East can
based on Buddhism and the
for the region should revolve around be classified as either for eco-leisure,
tribal culture in states like Sikkim,
key themes of nature, culture, and wellness, adventure, religious, or
Nagaland, Mizoram, Arunachal
leisure. Broadly the strategy could business, a specific marketing
Pradesh and Manipur.
consist of the following. strategy needs to be devised for
each of the segments. Similarly, • Target the younger population
• Focussed marketing strategy. (both domestic and international)
focus should also be given to attract
• Develop easily identifiable and international tourists. by promoting events like music
attractive circuits around the key competitions, talent hunts, and
Some of the key strategies that can
themes of adventure sports.
be adopted are:
–– Nature, wildlife and adventure • Offer special discounts for off
• Meetings Incentives,
–– Culture, religion and history season and special interest
Conferencing, Exhibitions (MICE)
packages for tourists belonging to
–– Leisure and sports tourism: If one looks east beyond
the Visiting Friends and Relatives
Kolkata to hold corporate off-sites,
–– Wellness tourism. (VFR) category and intra North-
business and sales meetings,
• Connect with key tourism hubs in East travellers.
very few places emerge that can
India and neighbouring countries. accommodate large number of Promotion strategy: A number
• Develop infrastructure people (over 300) in a business- of promotion strategies exist like
leisure environment. Typically, it is roadshows, advertising through
–– Hospitality TVs, sales promotions, public
concentrated in Guwahati, Siliguri
–– Connectivity. and Darjeeling. North-eastern relation, social media and personal
• Identify and address ecological cities like Gangtok, Guwahati, selling. Each of them has its own
concerns. Shillong, Dimapur and Agartala distinct benefits and so an effective
should be developed as MICE promotion mix to achieve great
• A North-East Tourism benefits within the given budget
sites providing opportunities for
Development Authority should constraints has to be devised.
business seminars, conventions,
be created under the North-East
and meetings. Infrastructure Advertising: The various media
Council, for implementation of
facilities like hotels with meeting vehicles available for promotion of
a region wide tourism master
and video conference facilities, the region are as follows:
plan including development of
high speed broadband and
intrastate circuits. • The Tourism Departments or
convention centres needs to be
developed in a big way. Along North-East Council should conduct
with this, leisure facilities need to roadshows in other states and
be upgraded in these locations. metro cities. This also includes
participation in international trade
• Weaving the legends: Connect
and tourism fairs.
various historical sites throughout
the region to document the • Advertisements in dailies,
history and legends associated weeklies, and fortnightly
with them. These legends and publications in leading national
stories can be woven together newspapers and magazines.7
to attract tourists to these
6. http://mdoner.gov.in/content/report-studies-ner destinations and also add to
accessed September 2015
the experience in the form of
7. http://mdoner.gov.in/accessed September 2015
dramatic/artistic depictions.6
14
• Outdoor advertising at airports, Wellness tourism circuits are more attractive as

important road junctions in the compared to individual destinations,
targetted states and countries. Wellness tourism is ‘travel circuits can also help increase
associated with the pursuit of tourism revenue while adding to the
• Television and radio advertising
maintaining or enhancing one’s tourist experience. They also help in
showing video clips of the region.
personal wellbeing.’9 prioritising development and focus
• Tie up with international travel their efforts where it is required
sites and magazines. The north-eastern states of India
have the potential to increase the most, thereby developing less
• Develop a broad North-East wellness travel. They possess scenic developed destinations. In the
tourism guidebook, leaflets and locations which can be a home to a context of North-East India, circuits
brochures, inflight brochures and vast number of spas, health resorts, should be developed around the
tourism maps.8 yoga retreats, and fitness centres, following themes.
It is recommended that the services etc. • Nature and adventure
of a professional service provider The local population of the north- • Culture and religious
be engaged to devise an effective eastern states are known to be
promotion strategy for the region. • International circuits with Bhutan,
skilled in avenues that are centrally Nepal, Bangladesh, Myanmar and
placed under wellness tourism but Thailand.
Social and digital media: In todays
migrate to look for employment
interconnected world a fast way Planning circuits’ logistics and
as adequate opportunities are not
of reaching potential tourists is ease of movement are important
present in their home states. If this
effective campaigning through digital considerations, which need to be
sector is developed, migration of
media. The tourism sites/portals addressed properly to help enhance
skilled resources can reduce and
of the states must be redesigned the viability of the circuits. The
local employment can increase.
to provide necessary information entry and exit points of circuits
to tourists at their fingertips. The Development of tourism circuits tdetermines their viability to a
Tourism Departments must use great extent. The following possible
social media avenues to advertise Developing and promoting well- circuits are proposed based on
and promote tourism and also structured circuits is central to any current demand and potential for
position their products based on the successful tourism promotion development.
feedback received via this medium. strategy. Apart from the fact that
Proposed tourism circuit
Strategy Strategy
Guwahati • Guwahati‐Shillong‐Kaziranga‐Majuli‐Jorhat The centre is expected to have

• Guwahati‐Shillong‐Kaziranga‐Majuli‐Tezpur‐Bhalukpong‐Bomdilla‐ multimedia exhibition facilities,a
Tawang amenity centre, ethnic food joints,
• Guwahati‐Shillong‐Nongstoin‐Balpakram‐Tura‐Guwahati recreation centre, shopping plazas
• Guwahati‐Manas‐Tura‐Balpakram‐Nongstoin‐Shillong‐Guwahati for handicrafts, handlooms, jewellery,
artefacts, etc.
North • North Lakhimpur/Itanagar-Ziro-Daporijo-Along-Dibrugarh North Lakhimpur may require a three

Lakhimpur/ • North Lakhimpur/Itanagar‐Ziro‐Daporijo‐Along‐Passighat‐Roing‐ Tezu‐ star category hotel.
Itanagar Dibrugarh Beautification of Itanagar city,
• North Lakhimpur/Itanagar‐Ziro‐Daporijo‐Along‐Mechuka‐Dibrugarh development of the road leading to lake
Ganga, development of rural tourism in
surrounding Nyishi villages.
Dimapur • Dimapur‐Kohima‐Wokha‐Mokokchung‐Mon‐Sibsagar Tourist amenities are required,

• Dimapur‐Kohima‐Senapati‐Imphal‐Moreh including development of facilities
around the Kachari ruins, a convention
centre in Dimapur and a 3-4 star hotel.
Silchar • Silchar‐Imphal‐Aizawl‐Silchar River front development is required

• Silchar‐Haflong‐Shillong‐Guwahati including; walkways, arcades, lighting,
• Silchar‐Haflong‐Aizawl‐Saiha-Blue Mountain‐Palak lake jetty, and a floating restaurant, boating
and water sports, houseboats.
8. http://mdoner.gov.in/accessed September 2015

9. http://spamantra.in/gsws-2013-india-a-defining-moment-for-global-spa-and-wellness/accessed October 2015
15
Proposed tourism circuit
Strategy Strategy
Agartala • Agartala‐Silchar‐Shillong‐Guwahati Development of a tribal heritage village

• Agartala‐Udaipur‐Dumbur Lake‐Unakoti‐Silchar at Khumlung, a tourist facility centre at
• Agartala‐Dumbur Lake‐Jampui Hills‐Aizawl‐Silchar Kamalasagar with tourist amenities and
• Agartala‐Jampui Hills‐ Aizawl‐Imphal (Silchar) an interpretation centre, convert part
of Ujjayanta Palace at Agartala into a
heritage hotel.
Bagdogra/ • Bagdogra‐Kalimpong‐Gangtok‐East Sikkim‐Darjeeling‐Bagdogra

Gangtok • Bagdogra‐Kalimpong‐Gangtok‐West Sikkim‐Darjeeling‐Bagdogra
• Bagdogra‐Kalimpong‐Gangtok‐North Sikkim‐Darjeeling‐Bagdogra
Actions needed10
Proposed ideas Actions recommended
Strategy
• Create a North-East tourism development authority with a mandate for development of tourism
North-East tourism development circuits, associated infrastructure, and marketing of the region.
authority • The authority should have representatives from each state, North Eastern Council (NEC) and
Ministry of Tourism.
• Institute North-East ecotourism guidelines and certification.

Ecotourism • Notify eco sensitive areas as ’ecotourism only’ zones.
• Set-up a model ecotourism project in each state.
• Thorough documentation of the history and the folklore.

Cultural tourism • Create cultural themes and stories which can attract tourists.
• Actively promote local culture and develop cultural exhibitions.
• Position Guwahati, Shillong, Gangtok, Dimapur and Agartala as MICE destinations and create
necessary infrastructure.
• Document and highlight the history and heritage associated with various places in North-East.
Marketing North-East tourism • Promote specific cultural circuits for international tourists.
• Focussed advertising campaigns through print, electronic media, inflight brochures, etc.
• Broad North-East Tourism Guide book.
• Develop a North-East Tourism web portal.
10. KPMG in India and FICCI porposed 2015
16
Circuit development
• Develop 2-3 star category hotels in Majuli, Nongstoin, Tura, Mokokchung, Mangan, Lachung
(Sikkim).
• Develop 3-4 star category hotel in Bomdila, Sibsagar, North Lakhimpur, Itanagar, Dibrugarh,
Dimapur, Kohima, Moreh, Silchar.
Development of hotels and resorts • Heritage hotel in Imphal, Agartala.
• Development of eco-resorts at Balpakram, Zero, Daporijo, Passighat, Mayudia, Mehao Wild
Life Sanctuary, Mechuka, Khonoma, Doyang, Mopungchuket village, Longwa Village, Shiyong,
Loktak, Lamden, Silchar, Haflong, Jatinga, Blue Mountain (Phawngpui), Palak Lake, Rudrasagar,
Narkelkunju island (Dumbur Lake), Tsomgo Lake, Kecheopari Lake, Yumthang.
• Convention facility with a seating capacity for 3000 people in Guwahati.

• Convention centre in Dimapur with a seating capacity for at least 1000 people.
Convention facilities • Small trade centre with convention and exhibition facilities in Moreh.
• Convention centre in Agartala with a multiconference facility and an open air theatre,
exhibition facilities.
• Provision of wayside amenities on all major roads (travel time between two wayside amenities
should not be more than two hours).
Overall circuit development • Development of recreation and refreshment facilities in all major tourist nodes and
destinations.
• Site development and beautification of historical monuments and natural attractions like caves,
etc.
Suggested timelines11
Proposed initiative Suggested timeline
North-East tourism marketing initiative Ongoing
Setting up North-East tourism development authority 2016
Notification of ecotourism only zones 2016
North-East ecotourism guidelines and certification 2017
Model ecotourism project in each state 2017
Thorough documentation of history and folklore 2018
Develop 2-3 star category hotels in Majuli, Nongstoin, Tura, Mokokchung, Mangan, Lachung 2018
(Sikkim)
Develop 3-4 star category hotel in Bomdila, Sibsagar, North Lakhimpur, Itanagar, Dibrugarh, 2020
Dimapur, Kohima, Moreh, Silchar
Heritage hotel in Imphal, Agartala 2020
Develop 24 eco resorts 2020
Convention facilities in Guwahati, Dimapur, Moreh, Agartala 2020
17
Energy
Overview
Status of power generation

Long-term forecast of electrical energy requirements in the North-East (MW)
It has been found that the per capita
power consumption (around 249kWh) 2021 - 22 2031- 32
in the North-East is low as compared
Arunachal Pradesh 177 365
to the national average of 778kWh1.
In spite of this and the fact that the Assam 2,534 5,033
North-East has an installed capacity
of about 2905MW2 the region still Manipur 497 1212
suffers from power shortages. The
main factors contributing to this are Meghalaya 596 1112
a. low plant load factor Mizoram 352 723
b. weak connectivity with the eastern
grid and a limited carrying capacity Nagaland 271 554
c. distribution capacity. Sikkim 176 341
Tripura 472 913
North-East 5,075 10,253

Source: Central Electric Authority (CEA) 2014
1. http://timesofindia.indiatimes.com/city/guwahati/Power-rich-North-East-consumes-far-less-electricity-
than-rest-of-the-country/articleshow/13310078.cms accessed September 2015
2. http://www.swaniti.com/wp-content/uploads/2015/03/Swaniti-Initiative_Report-on-NER.pdf, Multi
Sectorial analysis of growth opportunities for north east region
18
Available potential in the region: Total identified potential (Hydropower)

Having various perennial rivers and
water bodies, the region has great
power generation opportunities,
especially for hydropower in the
states of Arunachal Pradesh,
Sikkim and Meghalaya.3 The total
hydropower potential of the region
is estimated at over 58971MW.4 The
spill-over benefits for the region can
be channelised for the development
of infrastructure such as roads
and railways, communications and
electricity supply to remote hilly
areas, resulting in better quality of
life.5
Source: CEA 2014
A number of incentives are also Capacity yet to be developed (Hydropower)

available for power development in
the region. For example, under the
Mega Power Policy of the central
government, the qualifying threshold
capacity of 350 MW for setting up
hydropower plants in the region
and for availing the special benefits
thereof is lucrative compared to the
capacity for the rest of the country,
which is 500MW.6 The Government
is encouraging investment in
power for the private sector .More
than 16,000 MW of electricity has
been allotted to private players for
development.6
North-East India has a substantial
potential for renewable energy from
solar power units (particularly in
Assam), wind energy (in Meghalaya,
Nagaland, Mizoram, Arunachal
Pradesh) biogas and small and micro
hydropower projects. Source: CEA 2014
3. www.mdoner.gov.in
4. http://mdoner.gov.in/node/1306
5. FICCI Report 2014 First North East Summit
6. http://planningcommission.gov.in,
Development of Power Sector in north-
eastern region as accessed September 2015
19
Power: Key challenges and way forward
Resettlement and rehabilitation Transmission and distribution

issues • Due to dispersed demand
• The land acquisition situation in the region, the per-unit
is difficult due to inaccurate or cost of transmission in the
incomplete date of land ownership. north-eastern region is higher
compared to other parts of
• Sustainable resettlement options
the country. For example,
should be conceptualised by central
the associated transmission
and state governments.
system for evacuation of
Environmental concerns Kameng (600MW) power was
estimated INR1,100 crore
• Because of unlike biodiversity which is about 50 per cent
in the north-eastern region, of the cost of the generation
getting clearance from the project.
Ministry of Environment and
• Further, difficult terrain,
Forests (MoEF) has become a
hostile weather coupled with
challenge in the recent past.
lack of qualified manpower
• The state government and makes the situation worse
the Ministry of Power should and results to inadequate
check and justice for genuine development of Transmission
cases so that they get faster and Distribution (T&D) system
clearances from the MoEF. facilities in the north-eastern
Riparian issues states, adversely affecting the
reliability of power supply to
• Most of the river systems the consumers.
of North-East India are
• To overcome this issue, the
transnational. For example: the
Union Government can
Brahmaputra River originates
provide a centrally sponsored
in Tibet, flows into India and
scheme support interstate and
ends in Bay of Bengal after
intrastate transmission and
traversing Bangladesh.
distribution projects.
• Full potential of the river
• Incentives can be introduced
stream cannot be utilised due
by the state government to
to inadequate agreements,
develop T&D system.
and disputes regarding water
sharing.
Physical infrastructure
• The central government, in
consultation with the state • Power projects generally
governments could put in require massive infrastructure
place a mechanism to resolve backing, especially roads to
outstanding border and share transport heavy equipment and
allocation issues. helicopters to transport smaller
• International water sharing equipment.
issues also need to be • Power sector requirements
resolved through dialogue with needs further prioritisation
the neighbouring countries to for roads and highway
ensure a mutually beneficial development in this region,
arrangements. and deployment of helicopters.
20
Proposed ideas
An estimated 50,000MW of but is delayed due to various might not only fulfil the immediate
hydropower potential remains reasons. The commercial operation problem at hand but could actually
untapped due to environmental of this project along with the create a power surplus in the region.8
concerns and various other reasons Palatana Project would make an Further other existing projects are
apart from substantial possibilities additional 1,475MW of power also being pursued to improve the
for gas-based and coal-based available to the region, which might scenario as highlighted in the table
thermal generation.7 The thermal not only fulfil the immediate problem below.
power project at Bongaigaon is at an at hand but could actually create a
advanced stage of implementation, power surplus in the region. which
Projects Actions recommended
• Address security related issues and help ensure speedy completion of the project.
Bongaigaon thermal power plant • Develop IWT-based coal transportation systems for cost effective transportation of coal.
• Long-term coal linkage from Bihar and Jharkhand.
• Speedily commission third unit of the project.

Tripura thermal power project
• ONGC should ensure quality of gas supplied to the project.
• Address the safety concerns and make the necessary changes in the design parameters as
Lower subansiri hydro electric suggested by the expert panel.
power project
• Measures for downstream impact mitigation.
• Address safety and environment concerns before construction begins.

Debang multipurpose project
• Make design changes if necessary.
• Objective environment and economic cost-benefit analysis for each project.

Other hydro projects • Address environmental and safety concerns at the design stage.
• Get local and downstream population onboard during the planning phase.
• The state government should resolve security issues in the Bongaigaon-Purnia Section.
Ultra mega transmission project
• Power grid to help ensure speedy implementation.
7. http://web.worldbank.org/archive/website01062/WEB/IMAGES/PAPER_6_.PDF
8. FICCI Report 2014 First North East Summit
21
Over and above for the existing Sourcing power from Bhutan Small hydropower
projects, certain steps need to be
Under the 2006 agreement on Small and mini hydropower
taken to enhance the sector further,
cooperation in hydropower with generation is gaining importance in
which are listed below.
Bhutan, India has developed over the world over as their impact on the
Transmission 1,400MW of hydropower capacity in environment is slight and they have
the neighbouring country10. Under smaller budgets and implementation
A large number of hydropower
the agreement, India plans to time frame. The constructions of
generating stations are expected
develop 10,000MW of hydropower Small hydro power (SHPs) do not
to start functioning in the north-
capacity in Bhutan by 2020. Upto disturb the local habitat unlike large
eastern region, during the twelfth
90 per cent of the hydropower is hydropower projects. The North-East
and thirteenth plan period. These
proposed to be exported to India. has a large number of perennial river
could be a major source of power
to the states and create substantial systems which can be harnessed to
Sikkim may be included in the
surplus power which will need to set-up small and mini hydropower
North-Easter Region grid
be evacuated. Apart from the large stations catering to the needs of
transmission capacity to evacuate Sikkim is included in the NER for the local area. While many potential
power from the region, an adequate purposes including the benefits locations have been identified for
system strengthening could be under the North-East Industrial and setting up small hydropower projects
required within the North-Eastern Investment Promotion Policy, etc. the actual progress on the ground
Region (NER) to help ensure that the However, in case of power, Sikkim has been nominal. To give a boost
North-East is able to benefit from is included in the eastern regional to small hydro, a regional small
the increased capacity. Therefore, grid, thus depriving the North-East of hydropower policy with provisions
it is important that transmission the substantial Hydropower Potential for engaging PPP partners and
development in the NER states is that the state possesses. As Sikkim addressing issues of land acquisition,
also taken up simultaneously with is a part of the North-East for almost power evacuation, etc. should be put
the development of the hydropower all practical and economic purposes, in place.
projects.8 The following transmission it should be included in the North-
capacity addition projects may be East regional grid. Shale oil exploration
taken up in the immediate future. To exploit the massive shale oil and
Solar energy
• Rangia/Rowta Pooling Station- gas reserves in Assam and Arunachal
Azara 400kV D/c line (high According to estimates by TERI, Pradesh in an environmentally
capacity) Assam has 240-260 clear days and sustainable manner, a Shale Oil and
4.4-5.6 KWh of solar power potential Gas Authority should set-up. The
• Azara-Byrnihat 400kV D/c line per square meter per day while authority should pool resources
(high capacity) Tripura has a similar potential.26 The available with leading public sector
• Byrnihat-Silchar 400kV D/c line option of solar power should be oil and gas companies to focus
(high capacity) used for off grid power generation on developing a cost effective
• Silchar-Surajmaninagar 400kV D/c and electrification of remote villages. technology for shale oil and gas
line (high capacity) In environmentally sensitive areas exploration.
like Kaziranga, the reliance on fossil
• Surajmaninagar-Melriat 400kV D/c fuel should be reduced by adopting
line (high capacity) solar power. Innovative ideas like
• Melriat-Imphal 400kV D/c line solar trains and solar carts for jungle
(high capacity) safaris, etc. should be explored.
• Imphal-Kohima 400kV D/c line In addition to this it is proposed that
(high capacity) at least 1000 villages in Assam and
• Kohima-Mariani 400kV D/c line Tripura should be provided off grid
(high capacity) power through solar Photovoltaics
(PV’s) units.
• Mariani-Silapathar Pooling Station
400kV D/c line (high capacity).9 9. Development of Power Sector in the north-
eastern region. http://planningcommission.gov.
in as accessed September 2015
10. http://www.feedthegrid.net/as accessed
September 2015
22
Action needed11
• Strengthen the link between the eastern and north-eastern Grid.

Transmission • Strengthen intraregional transmission and distribution capacity by building more 400 KV
transmission lines.
• 25 per cent of power procurement from Bhutan should be allotted to the North-East.
Bhutan power • Adequate transmission capacity connecting North-East India with Bhutan should be put in
place.
Sikkim • Include Sikkim in the North-East Power Grid.
• Take up PPP projects for off grid solar energy, to electrify 200 villages in Assam and Tripura.
Solar energy • Policy decisions to reduce dependence on fossil fuel in environmentally sensitive areas.
• Explore the possibility of a solar eco-train to connect environmentally sensitive areas like
Kaziranga.
• Regional Small Hydropower policy to facilitate growth of small hydropower projects.

Small hydropower
• Facilitate land acquisition and power evacuation from small hydropower projects.
Shale oil & Gas • Set-up Shale Oil and Gas Exploration Group with experts from ONGC, OIL India, etc.
Strengthen link between eastern grid and north-eastern Grid 2016
25 per cent of power procurement from Bhutan to be allotted to North-East 2016
Include Sikkim in North-East Power Grid 2016
Policy for reduction of dependence on fossil fuel in environmentally sensitive areas 2016
Regional Small Hydro policy to facilitate growth of small hydro projects 2017
Set-up Shale Oil and Gas exploration Group 2017
PPP projects for off grid solar energy, to electrify 200 villages in Assam and Tripura 2018
Strengthen intraregional transmission and distribution capacity by building more 400KV Transmission Lines 2020
23
Infrastructure
Overview
One of the key developmental Added to this, inadequate

bottlenecks in the North-East is infrastructure within the region
that of infrastructure. While a lot of and the lack of connectivity with
progress has been achieved during the neighbouring countries has
the past few decades, the current contributed considerably to the slow
status is far from adequate. pace of growth in the region.
The region is connected by rail and
road with the rest of India only
through the 22km-wide Siliguri
Corridor. A lack of connectivity
through our neighbouring country,
Bangladesh has made connectivity
between most parts of the region
and mainland India rather difficult
and convoluted. For example,
the distance between Agartala
and Kolkata through the Silliguri
corridor is three times than through
Bangladesh.1
1. http://thediplomat.com/2013/11/geographys-
curse-indias-vulnerable-chickens-neck/as
accessed September 2015 as accessed
September 2015
24
Status of road development Road density in North-East India

Being inexpensive and easier, road Road density/1000 Density/1000
transport is an important mode of States
sq. km population
travel in hilly areas in comparison to
other modes of travel. Arunachal 196.96 13.77
The state highways and Major Assam 2936.51 7.83

District Roads (MDRs) are extremely Manipur 739.11 6.98
important for facilitating intrastate
movement of people and goods. Meghalaya 438.67 3.89
Mizoram 292.11 6.35
Nagaland 1345.32 10.27
Sikkim 263.95 3.17
Tripura 3026.23 9.09
India 965.73 2.77

Source: 1 Material supplied by TRW, M/o Road Transport and Highways; 2 Annual Report, published by
M/o Road Transport and Highways
Status of railways Air connectivity
North-East India has about 2,600 Intraregional air connectivity is still poor. In fact, the number of functioning
km of railway lines, but till now only airports in the region has reduced from 17 to 11.3
three state capitals are connected by
The status of the airports is as follows:
railways, with most of the lines lying
in the states of Assam and Tripura.2
Airport Present status Connecting places
Rest of the states are still waiting for
the arrival of railway tracks to come Lokpriya Gopinath Bordoloi
even after the announcement of International (LGBI) Airport, Operational International connectivity
major railway projects by the Railway Guwahati
Ministry With an intention to connect Daily air connectivity
Lengpui, Mizoram Operational
all state capitals of the region, inside state
most of the projects are running
Umroi, Shilong Operational
behind schedule. The hilly terrain
of the region makes it difficult and Baljek, Shilong Under construction
expensive to set-up rail networks in
Imphal, Manipur Operational
the region. As a result of this, hilly
states such as Arunachal Pradesh, Agartala, Tripura Operational
Manipur, Meghalaya and Mizoram
Pakyong, Sikkim Underway
are still deprived of a railway facility.
Source: FICCI Report 2014, First North-East summit
Rail connectivity with Bangladesh
which existed before 1947 has
ceased to exist, although a new A greenfield airport has been proposed near Itanagar, the environmental
connectivity through Tripura is clearance for which was received in April 2010.4
proposed, the erstwhile railway
line from Mahishahan in Karimganj
District of Assam to Sylhet also
needs to be revived.
A number of railway projects are 2. http://www.observerindia.com/cms/sites/ 4. http://www.arunachalpradesh.gov.in/csp_ap_
delayed due to various reasons orfonline/modules/analysis/AnalysisDetail.html portal/pdf/Announcement/new-greenfield-
such as the difficult terrain, security ?cmaid=62152&mmacmaid=62153as accessed airport-site.pdf accessed September 2015
situation, land acquisition related September 2015
3. https://en.wikipedia.org/wiki/List_of_airports_
issues, etc.
in_India as accessed September 2015
25
Inland Water Transport (IWT)
Inland water transport can be a

viable, cost-effective alternative
compared to the high cost
of expanding other modes of
transportation.5
Two of the national waterways
flow through the region: NW2
(Brahmaputra) and NW6 (Barak).
However, the sector is underutilised.
In Assam, the contribution of IWT to
the overall cargo movement stands
at 3 per cent which is less by a big
margin compared to Bangladesh
which is at 32 per cent.6
There is only one IWT terminal
(Pandu, Assam) which meets
the minimum requisite criterion
of a terminal, and therefore
significant investments will be
required to develop the sector. In
addition to developing the physical
infrastructure, protocol route issues
with Bangladesh need to be revisited
and resolved.
5. Gateway to the ASEAN India’s North-East

frontier FICCI report
6. http://mdoner.gov.in/content/inland-waterways-
ner accessed September 2015
26
Developments during the last year
Investment in infrastructure: During the last year a sub-regional • Agreement between Bangladesh
• The government has announced Motor Vehicle Agreement had Submarine Cable Company
plans of investing over INR92,000 allowed buses and later private Limited (BSCCL) and Bharat
crore, for the development of vehicles with a BBIN permit to travel Sanchar Nagar Limited for leasing
roads and railways across borders between Bangladesh, of international bandwidth for
Bhutan, India and Nepal. internet at Akhaura.
• Under the SARDPNE (Special
Accelerated Road Development Connectivity with Bangladesh: Connectivity with Myanmar and
Programme) for the North-East, South-East Asia
• Two bus services, Agartala-Dakha-
INR35,000 crore is proposed
Kolkata and Guwahati-Shillong- • Trilateral Highway: The 3,200KM
to be invested to develop
Dakha were flagged off during the long India-Myanmar-Thailand
the Trans-Arunachal highway
visit. (IMT) trilateral highway which
and for connecting all district
• An agreement was signed forms a part of Asian Highway 1,9
headquarters by a two-lane
granting access to Chittagong and has been taken up as a priority
highway (about 6400km).
Mongla Ports.To benefit from the and work is now going on at
• A new rail network is a fast pace. An agreement to
connectivity with the Chittagong
being created in addition to operationalise the highway is
Port, the following developments
strengthening the existing expected soon.
are proposed:
network at a cost of INR57,000
–– The railway link from Agartala • Kaladan Multimodal Project: The
crore.7
to Akhaura railway junction in government has sanctioned a
• Investment plans are also revised estimate of INR2904
Brahmanbaria in Bangladesh is
being drawn up by the telecom, crore for the Kaladan Multimodal
expected to be completed by
power, civil aviation and shipping project which is expected to
middle of 2017.
ministries. provide connectivity between
–– This will be accompanied with Mizoram and Sitewe Port. Work
BBIN (Bangladesh, Bhutan, India, India constructing a bridge on the project is expected to be
Nepal) Initiative : across river Pheni to link up completed by 2016.
The BBIN initiative has identified South Tripura district with
connectivity as the priority, including Chittagong Hill Tracts.
smooth electrical grids, shared • The Protocol on Inland Water
access to road, rail, air and port Transit and Trade was renewed.
infrastructure, and ease of travel.
Proposed ideas
Integrated economic development North-East ring road

corridor
Some of the earlier government
The sub-regional grouping that has and chamber reports have proposed
been formed between Bangladesh, the development of a ring road
India, China and Myanmar Economic connecting all the north-eastern
Corridor (BCIM-EC) has the objective states.
to develop stronger trade benefits
and improve the citizen to citizen
relationship. The BCIM can serve
7. The Economic times , http://articles.
as a catalyst to generate enormous economictimes.indiatimes.com/2015-07-15/
economic benefits in areas of trade, news/64449620_1_prime-minister-narendra-
energy, transport, infrastructure and modi-north-east-chief-ministers
communication.8 8. http://www.idsa.in/idsacomments/
NorthEast%20inBCIM-EC_
RBhattacharjee_171014
9. http://www.newindianexpress.com/world/
India-Thailand-International-Highway-Opens-
in-November/2015/09/02/article3006971.ece,
September 2015
27
The proposed route for the ring road is as follows:
Gangtok Rangpo Alipurduar Srirampur Bongaigaon Udalguri Nalbari
Itanagar Seppa Chanditop Arnatula Kalkatag road
Ziro Along Pasighat Dambuk Tezu Wakro Miao Joypur
Darlawn Churachandpur Imphal Ukhrul Tuensang Mokokchung Wakching Sonari
Tuiral Aizwal Mamit Teliamura Karimganj Shilong Nongstoin Rongjeng Phulbari Dhubri
This should give a significant boost to the pace of development in the region.
Source - FICCI Report, First North-East summit
Trans-Himalayan highway
To provide alternate connectivity While Bhutan has already agreed

to the region, it is proposed that a in principle for connectivity with
Trans-Himalayan Highway be built Arunachal Pradesh through the
to connect Arunachal Pradesh with Tashigang-Lumla route, permission
North India via Bhutan, Sikkim and is pending for a 15km section
Nepal. The road is expected to follow in the Tashigang-Lumla section.
the following route: Bomdila Connectivity in the Bhutan-Sikkim
-Tawang-Lumla-Tashigang-Thimpu- and Sikkim-Nepal ections will have to
Gangtok-Gangtok-Kathmundu-Patna. be negotiated.
The length of the road will be about
2000km.10
Road Length of stretches

to be developed
Moreh-Imphal-Silchar-Karimganj-Sylhet 500
Guwahati-Ledo-Myitkyina-Kunming (Stilwel Road) 516
Guwahati-Tura-Jamalpur-Dhaka-Petrapole-Kolkata 223
Aizwal-Silchar-Agartala-Sabroom-Chittagong 611
Aizwal-Champhai 188
Total 2038
Source - Gateway to the ASEAN India’s North-East frontier, FICCI reprot, 2015
10. FICCI analysis conducted 2015
28
Airports
There are 12 airports and airstrips Regional airline operators can are a number of other airports in the
in the region which are currently operate here and aim to bring about region that need to be developed as
not in use.11 It is proposed to significant change in the NER. well, which are listed below.
develop airports which can open
While the airports in Arunachal Since Guwahati is a major airport, we
up and increase tourism, such that
Pradesh are being developed by recommend setting up a common
development of air connectivity can
the government, three greenfield maintenance workshop there, which
act as a strategic move to positively
airports are already proposed at could be used by all airlines on a
impact the north-eastern economy.
Gangtok, Kohima and Itanagar. There payment basis.
Airports that need to be developed in phase I
State Airports Total investment envisaged (INR crores)
Assam • Rupsi 750

• Shella
Mizoram • Tuirial 375
• Kailashar
Tripura • Kamalpur 1125
• Khowai
North-East part of the smart city mission
The government’s ’Act East’ policy The concept of a ‘Smart City’ is practices around urban planning,
was considered while announcing aimed at enhancing the quality of life public private partnership (PPP), and
the list of 100 cities and towns from by helping to enhance the availability policies. It includes leveraging IT and
across the country for the smart city of core infrastructure needed for sensors into different aspects of the
initiative in India decent living in urban areas. city, such as transportation, water
management, waste management,
Eight cities from the North-East Concept of smart cities smarter municipal management
were selected for the mega project
The key focus of the government and planning. Some of the other
namely Pasighat (Arunachal Pradesh),
in the smart city initiative is to elements include:
Guwahati (Assam), Imphal (Manipur),
Shillong (Meghalaya), Kohima improve the lives of citizens. They
(Nagaland), Namchi (Sikkim), Agartala tap a range of interventions-ICT
(Tripura) and Aizawl (Mizoram). and digital technologies, leading
Objectives
Adequate water supply
Assured electricity supply
Sanitation, including solid waste management
Efficient urban mobility and public transport
Affordable housing, especially for the poor
Robust IT connectivity and digitalisation
Good governance, especially e-Governance and citizen participation
Sustainable environment
11. https://en.wikipedia.org/wiki/List_of_airports_ Safety and security of citizens, particularly women, children and the elderly
in_India as accessed September 2015, FICCI
report 2014, First North-East Summit
Health and education
29
In the approach to the Smart Cities Mission, the objective is a clean and sustainable environment, providing
core infrastructure and application of ‘smart’ solutions. As per the government’s smart city guidelines, the core
infrastructure elements in a smart city would include:
e-Governance and citizen services Energy management

• Public information, grievance redressal • Smart meters and management
• Electronic service delivery • Renewable sources of energy
• Citizen engagement • Energy efficient and green building.
• Citizens city’s eyes and ears
• Video crime monitoring.
Waste management Urban mobility

• Waste to energy and fuel • Smart parking
• Waste to compost
• Waste water to be treated
Smart • Intelligent traffic management
• Integrated multi-modal transport.
• Recycling and reduction of Construction
solutions
and demolition (C&D) waste.
Water management Others

• Smart meters and management • Telemedicine and tele-education
• Leakage identification, preventive • Incubation/trade facilitation centres
measures • Skill development centres.
• Water quallity monitoring.
Source: http://smartcities.gov.in/writereaddata/SmartCityGuidelines.pdf June 2015
30
How can the North-East leverage Skill development centre: With a • Regulatory framework and
on the smart city mission: strong English speaking population policies to define and facilitate
The North-East faces a number of and the government’s focus in innovative citizen service delivery
distinct advantages and challenges leveraging the North-East for models.
which it must consider while Information Technology Enabled • Access to innovative, low-cost,
implementing the smart city Service (ITES)/Business Operations participatory, and sustainable
initiatives: Plattform (BOP)/ Knowledge financing models, especially in
Processing Outsourcing (KPO ) non-revenue sectors.
Terrain: Thge region being sector as part of the Digital India
essentially a hilly terrain, it is initiative, setting up tele-education, • Interdependencies with other
difficult to set-up large sewerage, online education, skill development national missions, such as,
water treatment and waste centres seems like a must for this the Swachh Bharat Abhiyan,
management plants. One has to opt initiative. Digital India, Atal Mission
for a distributed model instead of for Rejuvenation and Urban
Project development authority: Transformation, Housing for All,
centralised treatment plants.
Setting up a North-East Regional etc.
Connectivity: As seen in the earlier Project Implementing Authority can
sections, setting up railways and help in accelerating development. • Prioritisation of highest impact
roads in a hilly terrain has its own ICT enabled infrastructure and
In addition, the following initiatives services projects, which should
challenges. However, cities need should be taken by the North-East:
to be connected to facilitate trade, also include social, economic,
education and healthcare. Since • Develop core skills needed to plan technical and financial parameters.
the region has large lakes, one can and implement smart initiatives.
Innovative financial models that
consider having a seaplane facility for can be considered for smart city
transport. development are:
Project examples Project model Source of revenue Source of capital
Smart parking PPP model Parking charge, advetisement Private player investment
revenue
Metro; Bus Rapid Transit System PPP model Ticket, smart cards, advertisment Private player investment, municipal
(BRTS) revenue funds, infrastructure bonds
Solid waste management; Taxable revenue; sale of energy and Municipal funds, state funds, Viability
Sewerage O&M model recycled waste Gap Funding (VGF), infrastructure
bonds
Recreational gardens and parks O&M model Entertainment tax; tickets Private player investment, green bonds,
municipal bonds
Digital infrastructure PPP model Mobile app charges, service tax Private player investment, municipal
funds, state funds, VGF
City wide Wi-Fi PPP model Data charges Private player investment, municipal
funds, state funds, VGF
Private player investment, green bonds,

Solar panel installment O&M/PPP model Sale of power energy efficiency bonds, municipal
funds, state funds
31
Actions needed12
Integrated economic development corridor
North-East Economic Development • Create a Project Development Authority on lines of the Delhi Mumbai Economic Corridor.
Corridor • Initiate discussions with Myanmar and Bangladesh to establish linkages and develop
complimentary economic corridors in those countries.
• Develop the Trans-Meghalaya road and rail linkage, connecting Guwahati to Dhubri, via
Shillong and Tura.
Integrated Transport Corridor • Agartala-Sabroom-Chittagong railway.
• Imphal-Moreh-Tamu railway.
• Silchar-Aizwal-Champai railway.
• Jawaharnagar-Darlon railway.
Industrial and Economic • Detailed feasibility study of the identified nodes.

Development Nodes • Identify core economic activities for each node and design a master plan for the same.
• Develop nodes under a suitable PPP framework.
Roads
• Carry out a complete survey of the existing roads which can become a part of the North-East
North-East Ring Road Ring Road and survey for new road connecting Miao (Arunachal Pradesh)-Joypur (Assam).
• Declare the project as a national project and allocate funds accordingly.
• National Highways Authority of India (NHAI) may be asked to implement the project.
• Complete the proposed road connecting Tawang and Tashigang in Bhutan (permission pending
Trans-Himalayan highway for 15km (Tashigang-Lumla section).
• Negotiate Bhutan-Sikkim connectivity (Lumla-Thimpu-Sangkari-Nathang valley/Juluk).
Negotiate connectivity through Nepal.
• Develop NH 53(Imphal-Jiribam ) as a four lane express way.

• Develop Stilwell road from Ledo to Myitkyina.
Core networks • Develop Tura-Jamalpur road.
• Develop Sabroom-Chittagong road.
• Develop Aizwal Champai road as a four lane road.
Inland water transport
• A River Development Authority to implement a thorough IWT project.

• Dredging of river Brahmaputra and Barak to ensure an actual LAD of at least 2.5 meters.
• Uninterrupted navigational aids along the entire route.
• Establish permanent channel stabilisation works.
• Develop 12 river ports in Brahmaputra and eight river ports in Barak.
• Develop townships and industrial areas along with the ports.
• Rail and road connectivity to the ports.
Airports
• In first phase operationalise six Airports

–– Operationalise Rupsi Airport with a runway extension for Boeing aircrafts
Operationalise non-operational –– Operationalise Shella Airport as a regional hub to connect airports in Bangladesh and
airports Nepal
–– Operationalise Kamalpur, Kailashar and Khowai Airports as alternative airports with
connectivity to Bangladesh.
• Revive Guwahati Flying Club to develop a full-fledged aviation training facility.

Capacity enhancement • Airport hotels in PPP mode in Guwahati, Imphal and Agartala.
• Common Maintenance Workshop in Guwahati to be used by all airlines.
Border townships
• Expeditiously implement Manipur Government plan for border township in Moreh.

• New border townships at Zokhawthar, Avankhung, Pangsau Pass, Akahura, Karimganj, Dawki,
Gasuapara, Mankachar and Daranga.
• Work with neighbouring countries to develop similar townships across the border.

32
Announce North-East economic development corridor 2016
Initiate discussions with Myanmar and Bangladesh to establish linkages and develop complimentary economic 2016
corridors
Set-up river development authority 2016
Start dialogue with neighbouring countries to develop similar townships across the border 2016
Operationalise Rupsi Airport with runway extension for boeing aircrafts 2018
Implement border township in Moreh 2018
Develop 50 economic development nodes 2020
North-East ring road 2020
Upgrade core networks of roads to national standards 2020
Develop 12 River ports in Brahmaputra and eight in Barak 2020
Operationalise shella airport as a regional hub to connect airports in Bangladesh and Nepal 2020
Operationalise Kamalpur, kailashar and Khowai Airports as alternative airports with connectivity to Bangladesh 2020
New border townships at Zokhawthar, Avankhung, Pangsau Pass, Akahura, Karimganj, Dawki, Gasuapara, 2020
Mankachar and Daranga
Agartala-Sabroom-Chittagong railway 2022
Imphal-Moreh-Tamu railway 2022
Trans-Himalayan highway 2022
Develop port townships 2022
Develop Trans-Meghalaya road and aail linkage, connecting Guwahati to Dhubri, via Shillong and Tura. 2025
Silchar-Aizwal-Champai railway 2025
Jawaharnagar-Darlon railway 2025
Dredging of Brahmaputra and Barak to ensure LAD of 2.5 metres Ongoing

33
Education
(Academic and vocational)
Overview
While a number of quality Status of higher education

institutions for higher education have
come up in the region, primary and There are 40 universities/deemed universities and nearly 800 colleges
secondary education are still areas spread across the region.1 The number of colleges per lakh population is
that require much improvement lower than the national average in all the north-eastern states combined
in terms of quality and outreach. except Manipur where it is marginally higher.1 The fact that many parts of
In the area of college education the region have a hilly terrain with sparse population spread out over large
too, while the number of colleges geographical areas has resulted in making access to higher education
have grown significantly over the difficult for the rural population. As a result the gross enrollment ratio in
years, several of them suffer from higher education is much lower than the national average.
a lack of qualified and trained
teachers, inadequate infrastructure, State No. of colleges Colleges/lakh people Average enrollment
laboratories are not sufficiently
equipped and there is a general lack Arunachal Pradesh 26 16 1227
of connect with job requirements.
Assam 485 13 950
The courses being taught at colleges
are very often outdated and have Manipur 79 26 1117
very little practical job related
requirements built into them. Meghalaya 61 17 927
Mizoram 21 22 526
Nagaland 57 22 486
Sikkim 11 14 994
Tripura 39 9 1036
2. Analysis conducted by FICCI,2015 Source. Analysis by FICCI 2015
34
Technical education: Although Institutions offering diploma courses

the region has over 40 engineering
colleges and few very good State No. of institutions No. of seats
institutions of technical education, Arunachal Pradesh 2 320
the demand far outstrips the
Assam 12 1803
supply.2 As a result many students
are forced to either migrate outside Manipur 3 285
the region or fall prey to dubious Meghalaya 3 440
institutions that have mushroomed
Mizoram 4 480
there.
Nagaland 3 285
Apart from engineering colleges,
there are also about 34 other Sikkim 4 390
technical institutions offering Tripura 3 440
undergraduate and post graduate 34 4443
diploma courses in various
Source: Analysis conducted by FICCI 2015
streams.2
Medical education: The region has State No. of medical colleges MBBS seats PG seats
11 medical colleges with an intake
capacity of 1,176 at the MBBS level Assam 5 626 362
and 501 seats in the post graduate
level. With only 2.45 per cent of Manipur 2 200 72
the country’s intake capacity in Meghalaya 1 50 20
medical colleges,2 the region suffers
from an acute shortage of doctors Sikkim 1 100 22
and results in an impact on the
healthcare system. 2 Tripura 2 200 25
There is therefore an urgent need 11 1176 501

for enhancing the medical education Source. Analysis by FICCI 2015
infrastructure in the region.
The region also has a shortage
of nursing and other paramedical
practitioners. Given the high demand
for nurses from the North-East in
other parts of the country and the
regional demand, there exists a huge
potential for development of nursing
and other paramedical education
infrastructure.
2. Analysis conducted by FICCI,2015
35
Status of vocational education State No. of ITIs

Industrial Training Institutes Assam 28
(ITIs): In the North-East there are
currently 63 ITIs of which 28 are Meghalaya 5
in Assam, with a total training
Mizoram 2
capacity of about 5860 candidates
per year under the Craftsman Tripura 12
Training Scheme (CTS). Additionally
about 4230 candidates are trained Manipur 7
per year in a short-term Modular
Nagaland 2
employable skills (MES) course
through the ITIs. Thus the total Arunachal Pradesh 5
training capacity of ITIs currently is
approximately 10,000 per year. In Sikkim 2
addition to this 14 new ITIs are also
Total 63
being set-up.3 Going forward, the
government plans to set-up 10 new Source. Analysis by FICCI 2015
ITI every year for next five years.
Demand for skilled manpower
For a region like the North-East the branded national names who programmes in this sector must
with good agro climatic conditions, have opened their hospitals here. focus on organic cultivation, modern
fertile well irrigated land and a large This region also has the potential tools for improving productivity, post-
percentage of population engaged in to be developed as a healthcare harvest management and marketing
agriculture, skilling in sectors related destination. To meet the increasing of horticultural products.
to agriculture, food processing, tea, local demand and for development
Automobile sector: A major mode
horticulture and supporting non- of health tourism, the demand for
of transportation from Assam and
agricultural sectors is key to faster skilled healthcare professionals is
other North-East states is via road.
growth. The sectors in which a high expected to grow rapidly.
With the setting up of the East-
demand for skilled manpower is
Handloom and handicrafts: West Corridor and four lanning of
expected are listed below:
Handloom weaving is a way of life the state highways, there can be a
Construction: The demand for and intensely linked with the culture boom in road transporters in this
skilled manpower can be seen in and heritage of the North-East. region. With the improvement of
sectors like welding, electrician, Assam, has the highest number of road infrastructure, there can be a
plumbing and tools and machinery looms in India’s, at over 13 lakh (46 demand for roadside mechanics near
(auto mechanic) when infrastructure per cent of India total)4. In 2009-10, the highways. The auto mechanics
projects for the development of the Assam produced 174 million metres may be able to find self-employment
’bridge’ between ASEAN and India of handloom fabric.5 Sualkuchi, a opportunities across the national and
starts. town in Assam has earned the name state highways.
of the Manchester of the East for its
Tourism and hospitality: The
silk products. Therefore, there is an
North-East has a huge tourism
urgent need to devise focussed skill
potential and a number of renowned
improvement programmes for the
brands are already establishing their
handloom sector.
presence in the region. A number
of five star hotels are also coming Horticulture: The NER is one of the
up. This could boost the demand for richest reservoir of genetic variability
skilled manpower in the industry. and diversity of different crops i.e.
various kinds of fruits, different
Healthcare: The people of the 3. Analysis conducted by FICCI,2015
vegetables, spices, ornamental
Welding, Electrician, Plumbing and 4. http://journals.du.ac.in/ugresearch/pdf/A.%20
as well as medicinal and aromatic
Tools and Machinery (Auto Mechanic) Aggarwal%20%201.pdf
plants. The diversity for horticultural 5. NSDC skill gap Study , North-East 2012
are generally part of the service
crops of this region has mainly 6. http://www.kiran.nic.in/pdf/publications/
industry. Apollo, Max Health Care
been managed by local farmers, Diversity_of_Horticulture.pdf accessed
and Narayana Hrudalaya are few of September 2015
often women.6 Skill improvement
36
Proposed ideas
North-East India knowledge hub North-East technical university: Approach to skill development
To help ensure uniform high quality
TheNorth-East has a number of technical education across the The skill development initiative in
quality education institutions and region, a North-East Technical the region must focus on few core
has the potential to emerge as University should be set-up with areas in which the region has core
a hub for education. The region central government funding. competencies or there is a potential
has 40 universities and deemed for future development.
universities, 11 Medical Colleges, Engineering college in every
district: To make technical education Centres of excellence for skill
over 40 engineering colleges, 31
available to students in far-flung development
poly-techniques, one IIM, one IIIT,
Tata institute of Social Sciences and areas of the region and to create It is proposed that seven centres
a large number of colleges and other a conducive environment for of excellence on each of the above
institutions.7 technology led economic growth, mentioned skill areas should be
it is proposed that an engineering set-up in the region. The centres
A number of cities have already collage should be set-up in each should be located in an area where
emerged as hubs of quality district of the region, under a the most industrial/economic activity
education and the institutions offer suitable PPP framework wherever related to the particular trade is
education in a large number of feasible. happening.
specialised fields.
Regional technical education fund: Each centre of excellence may be
The neighbouring countries of A regional technical education fund linked to smaller centres in other
Bangladesh and Myanmar have should be created with contributions states of the region. For example,
a growing demand for quality from the central and state a centre of excellence in tourism
education. This provides the region governments, multilateral agencies, and hospitality located in Kaziranga,
an opportunity to position itself as etc. The fund is expected to be focus Assam may be linked to smaller
a hub for quality education in the on enhancing the capacity of existing centres in Itanagar, Shillong, Udaipur,
entire sub region. The prevalence of technical education institutions and etc., thus developing a hub and
English as the general medium of provide viability gap funding for new spoke model.
instruction gives the region an added technical institutions.
edge over many of the neighbouring The centres could be developed
countries. Enhancing capacity for medical using the existing skill development
education infrastructure in ITIs, other colleges
Apart from attracting students from and universities. While each centre
other states and the neighbouring It is proposed that the number of could have more than one trade, it
countries, the region also needs medical colleges in the region should could focus on one specific trade to
to be positioned as a destination be increased to at least 40 to reach a develop advanced level expertise.
for investments in the education target of about one medical college
sector. While a number of private The centre of excellence may be
per ten lakh population. Similarly,
sector investments have already developed by the central government
the number of institutes for nursing
materialised, there is a potential in partnership with the state
and paramedical sciences should be
for even greater investments. Also governments and private parties
increased to at least 80 to achieve
there is great opportunity for the through a suitable PPP mechanism
a target of one nursing/paramedical
existing institutions and universities while the spoke centres may be
institute per 5 lakh population. This
to collaborate with other such developed by the state governments.
is not possible through government
institutions outside the region. intervention alone. It is therefore Skill university
suggested that a suitable PPP model
Enhancing capacity for technical An open Skill University may be
should be developed to attract
education institutes developed to cater to the needs of
private sector investment. Further
the Medical Council of India should those aspiring for higher vocational
To meet the growing demand for qualifications. The university would
technical education in the region the consider relaxing norms which do
not have a bearing on quality of offer B.voc, M.voc and PhD in
following steps are suggested. skilling. Apart from catering to the
education to facilitate faster growth
of medical education in the region. aspiration for higher education of
those opting for vocational education,
the university can also help in
7. Analysis conducted by FICCI,2015 bridging the demand supply gap for
trainers in the region.
37
Upgrading industrial training

institutes A model for PPP with ITIs for auto trade: The physical infrastructure is provided
by ITIs, while the private partners provide the modern engines, gear boxes and
Upgradation of ITIs may be taken technologically upgraded tools and equipment. Tata Motors dealers have also opened
up in a phased manner through a a service station within the campus of an ITI so that the trainees get a hands-on
PPP mechanism, where industry experience.
partners are invited to invest
Short-term and long-term programmes in ’Mechanical Motor Vehicle’, ’Diesel Mechanic’
in the upgradation of particular
and ’Driving’ are conducted across the ITIs. The NCVT courseware has been upgraded by
trades and also provide inputs for
private partners (Tata Motors/Hyundai etc) to make it technologically advanced as per
training. The model adopted for the
the demand of the industry.
automobile trade in some ITIs may
be replicated in other ITIs across The existing ITI faculties are trained by private partners on the upgraded course contents.
the region and also across other Student mobilisation is handled by the ITI authorities,
trades with suitable modifications. while the National Curriculum of Vocational Training (NCVT) certificate
Essential elements of the model of the Government of India is awarded on successful completion
are given below. of the training.
38
Actions needed8
Higher education
• Develop 10 knowledge hubs across the region, (each hub to focus on a specific area of
learning).
North-East knowledge hub
• Create adequate urban amenities in the education hubs.
• Package for Health Care Sector on the lines of NEIIPP.
• Set-up North-East Technical University.

• Set-up one Engineering college in each district through PPP/goverment funding.
Enhancing capacity for technical • Create a North-East Technical Education fund, to enable fast paced development of technical
education institutions.
• Set-up 29 more medical colleges through government funding/PPP Mode.
• Revisit norms for granting permission for setting up medical colleges.
Skill and Vocational education
Centres of excellence for skill • Set-up seven centres of excellence to focus on important skill areas.
development • Develop smaller outreach centres across the region to be linked to the centres of excellence.
Skill university • Set-up a North-East Skill University with funding from the central government.
• Each ITI in the region should identify core courses on which to focus.
Upgrading ITIs • Facilities for the core courses should be upgraded with private sector support in a PPP
arrangement.
Create a North-East technical education fund, to enable fast paced development of technical 2016
institutions.
Set-up North-East technical university 2017
Set-up one engineering college in each district 2018
Set-up a North-East skill university with funding from the central government. 2018
Develop 10 knowledge hubs across the region 2020
Set-up seven centres of excellence to focus on important skill areas. 2020
Upgradation of all it is 2020
Set-up 29 more medical colleges through government funding/PPP mode. 2022
39
Environment
Overview
The North-East holds great It is important to develop water

significance from an ecological management, forest development,
and evolutionary point of view. This and sustainable livelihood, carbon-
region is rich in biodiversity and trading policies which could provide
has the largest number of endemic benefits in the form of hydropower,
species of plants and animals as agriculture, transportation, and
compared to any other part of India.1 tourism. These benefits which
This region represents a confluence could accrue at both regional and
of the Indo-Malayan and Indo- local levels, may, in turn, directly
Chinese bio-geographical realms.1 accelerate growth and poverty
reduction.
While it is well recognised that this
region is a biodiversity hotspot,
information and data around
biodiversity, distributional patterns,
population dynamics, relationships
between landscape variables and
species composition, impacts of
habitat fragmentation, and the role
of biological corridors are sketchy
or unavailable, except for very few
1. Lok Man S. Palni. “Conservation of Himalayan
species. This information is vital for bioresources:An ecological, economical and
determining management strategies evolutionary perspective”, Nature at Work
for the use of biodiversity resources. Ongoing Saga of Evolution, 2010.
40
Existing strategies for tackling climate change
The Government of India, identifying 4. National water mission - to The missions form the core of
the need to address the gargantuan help ensure integrated water the action plan, representing
challenge of climate variability and resource management in order to multipronged, long-term and
change, launched a National Action conserve water, reduce wastage, integrated strategies for achieving
Plan on Climate Change (NAPCC) and determine more equitable goals in the field of climate change.
in 2008. This national strategy distribution. All national missions have been
for climate change outlines eight 5. National mission for a ’Green approved by the Prime Minister’s
national missions running until 2017 India’- to enhance ecosystem Council on Climate Change
addressing mitigation o as well as services (e.g. carbon and are at different stages of
adaptation to the impacts of climate sequestration and storage, implementation.
change.2 hydrological services, and Subsequently, the Ministry of
The eight missions with special biodiversity), along with Environment and Forests (MoEF)
relevance to adaptation to climate provisioning services (e.g. fuel has issued directions to all states to
change are: wood, small timber, and NTFPs).4 prepare state-specific State Action
6. National mission on sustainable Plans on Climate Change (SAPCC),
1. National solar mission to promote
habitat - to make the in which the states outline state
the development and use of solar
habitat sustainable through level measures in mitigation and
energy for power generation
improvements in energy efficiency adaptation of climate change.
and other uses with the ultimate
objective of making solar power in buildings, management of solid North-East Indian states have drafted
competitive with fossil-based waste management and modal their respective specific statehave
energy options.2 shift to public transport.5 drafted their respective specific
2. National mission for enhanced 7. National mission for sustainable State Action Plans on Climate
energy efficiency - enhancing agriculture - to increase the Change (SAPCC) and submitted the
energy efficiency by mandating adaptive capacity of the same to the Ministry of Environment
specific energy consumption agricultural sector to climate (MoEF) and Climate Change (CC)
reduction in large energy- variability and change through the for endorsement. All of them,
consuming industries. development of climate-resilient other than Assam’s have been
crops, expansion of weather endorsed. Assam’s State Action
3. National mission for sustaining insurance mechanisms, and Plan on Climate Change is under
the himalayan ecosystem - to agricultural practices. consideration. Implementations of
conserve biodiversity, forest cover, the plans have also begun and are in
and other ecological values in the 8. National mission on strategic
knowledge for climate change - varying stages.
Himalayan region.3
to gain a better understanding
of climate science, impacts and
challenges.
2. http://www.c2es.org/international/key-country-
policies/india/climate-plan-summary
3. “Maharashtra sets up cell to increase water
use efficiencvy”, PTI-The Press Trust of India
Ltd., October 7 2010 Issue
4. Ministry of Environment and Forests-National
Mission for a Green India
5. “CM to chair environment safeguard mission”,
The Times of India, August 31 2008 Issue.
41
Proposed ideas
Adaptation and mitigation • Need to increase forest-based Disaster preparedness

strategies for climate change biomass production. Promote • Need to strengthen existing
bamboo, cane and other Non- machinery for monitoring of
Policy measures: timber forest products (NTFPs) norms and guidelines.
• Promotion of green infrastructure which impact the environment
less. An improved ecosystem • Need to strengthen the disaster
and development of climate
could help augmenting incomes of response strategies.
friendly designs for the urban
sector in water supply, sewerage, those dependent on them.
Sensitisation:
urban housing. • Linking of forests through
• Sensitisation of governmental
• New norms for building corridors enabling species
machineries about climate change
codes-government buildings to migration.
such that they can deal with it in
mandatorily follow green building • Need to form agencies for an appropriate way.
norms in line with the Energy resolution of man animal conflicts.
Conservation and Building Code Sensitisation of masses for enabling
• Need to modernise existing them to adapt to climate change and
of the Bureau of Energy Efficiency,
agencies mandated with accept the implementing machinery
Government of India.6
protection of forest resources. promoted by the government and
• Policy for procurement of
• Need to take immediate other multilateral agencies.
environment friendly vehicles in
measures to halt encroachment
government departments, national Nature policy for the states
through measures for
parks like Kaziranga, etc.
rehabilitation of the affected
• Promotion of alternative and people. Need to reclaim areas To help ensure preservation of the
ecofriendly technologies in energy surrounding the crucial biosphere extremely fragile natural heritage of
and power generation. and sensitive wildlife zones. the region, all developmental plans
must naturally be moderated with
• Need to incentivise the use of • Need to develop alternative routes the concerns for ecological integrity.
green technology by private sector which do not impact national It is therefore recommended that
as well as by local populace. parks like Kaziranga. the state governments of the region
• Policy support for restoration must put in place a well thought out
of the old wetlands and stream Sustainable livelihoods
nature policy. Some key aspects that
flows, mainly in the urban areas, • Need to adapt agriculture, the nature policy must address are:
to enhance the drainage of the horticulture and pisciculture to
• Identify ecological ’red lines’
flood water and reduce water modern times through funding
which must not be crossed in
logging.7 research and development.
the process of economic and
• Dependence on rains for industrial development.
Forests, environment and
agriculture needs to be brought
biodiversity • Provide fiscal/other incentives for
down through modern irrigation
• Enhancing the quality of existing nature conservation.
techniques.
forests and upgradation of • Create facilities for recording,
• Crop yield needs to be improved
the degraded forest through documenting and preserving the
through modern techniques.
regulation and monitoring of bio diversity of the region.
invasive species and identification • Promotion of the use of
• Facilitate research, and make
of non-native species that can ICT, rainwater harvesting,
it profitable to be ecologically
survive climate change and be drip irrigation, post-harvest
sensitive.
beneficial to the ecosystem, infrastructure, cold storages,
management of insects and other development of crop insurance,
pathogens, adoption of short etc. can be some areas of focus.
rotation species, preventing forest • Capacity building for communities
fragmentation by conserving dependent of agriculture needs to
contiguous forest patches, eco be taken up in a big way.
restoration of degraded open
• Strengthening of institutions
forests, and restoration of grass
involved in improving agriculture
land.6
and its allied areas and those 6. http://www.vasudha-foundation.org/
involved in sustainable livelihoods 7. http://www.nicra-icar.in/nicrarevised/
for the rural community.
42
Water management strategy hill states are legally owned by to improve their livelihoods through
the community.8 It is therefore increases in local productivity, and
The North-East receives plenty of proposed that forest management collaboration between the different
rainfall and has a large number of in the region should be aligned to stakeholders.10
water bodies, yet many parts of the involvement of the community. This
region suffers from water shortages could involve: North-East carbon sink
during the winter, while other
a. Set-up joint management groups Any natural or manmade reservoir
parts suffer from floods. Efficient
comprising of community leaders that absorbs more carbon than
management of our water resources
and representatives from the it emits is a carbon sink. The
is not only critical for preserving
forest department. substantial forest cover available
biodiversity, it is also critical for
determining food security and b. Implementing centrally funded in North-East India, Myanmar and
agriculture. The following key steps conservation schemes through Bhutan has been playing such a
are suggested for efficient water joint management groups and role. With proper management, this
management: indigenous institutions. region could be converted into one
c. Empowering and enabling of the most powerful carbon sinks of
• Propagation of forests and social the world and be retained as a very
forestry initiatives to arrest soil traditional institutions and building
modern management capacities important biodiversity hotspot of the
erosion and to preserve the water world.
retention capacity of the soil. within them. This way the forest
departments will have viable
• Rain water harvesting should be Shifting of major roads away from
partners to craft new landscape
made mandatory under building hotspots
management systems that rely on
bylaws of the urban areas across networks of villages.8
the region. National and other major highways
d. Communities will develop their passing through important
• Appropriate technology should be own resource management plans biodiversity hotspots like Kaziranga
used to allow percolation of rain that address conservation and is a major cause of concern. As far
water into the soil through paved livelihood issues.9 as practicality is concerned all such
surfaces like roads and courtyards. highways should be shifted away
e. Support community efforts
• Reach of irrigation should be to intensify land productivity, from the core bio diversity hot spots.
extended to at least 75 per cent in especially on sites where terracing Wherever it is not possible to do
the plain areas. and irrigation are possible.10 so, dedicated corridors which are
• Concrete steps should be taken not disturbed by the traffic should
f. Agroforestry systems with a mix be developed by creating under
to replace jhum cultivation with of commercial products, including
terrace cultivation. passes/over bridges to mitigate the
timber, fibre, spice, and medicinal risk faced by animals. A thorough
• Agriculture departments along plants, could also help to generate assessment of all such roads should
with irrigation and flood control income, taking the pressure off be carried out immediately.
departments should hold steeper slopes and help reduce
capacity building exercises to jhuming.
increase awareness about water
conservation. Biodiversity and carbon trading
• In addition to the above, in order To maintain and further develop the
to facilitate the sustainable use of biodiversity wealth of the region, a
water resources, a thorough long- number of activities could be further
term plan should be drawn up for explored. This includes assessment
IWT, fisheries development and of capacity-building needs in the
hydro power development. forest departments, and a focus
on protected area management
Community led forest
plans. Many such areas do not
management
have management plans, or their
The importance of community effectiveness is very limited. Besides
involvement in forest management strengthening these systems, other
has gained widespread acceptance potentially advantageous activities
globally, and is critically important include cataloguing of flora and 8. Development and Growth in Northeast India -
in the NER, where the vast bulk fauna and making the information http://www.worldbank.org/reference/
of forests, particularly in the widely available, research in the use 9. http://nerlp.gov.in/
of plants, working with communities 10. http://www.worldbank.org/reference/
43
Action needed11
• Promotion of green infrastructure, environment friendly vehicles, eco-friendly technologies in

power generation, restoration of old wetlands.
• Enhancing quality of existing forests, increase forest-based biomass production, promote
Adaption and mitigation strategies bamboo, cane and other NTFPs, linking of forests through corridors, modernise existing
for climate change agencies, halt encroachment.
• Address livelihood issues by modernising agriculture, use of ICT, rainwater harvesting, drip
irrigation, post-harvest infrastructure, etc.
• Disaster preparedness and sensitisation.
Nature policy for north-eastern • Create a consultative mechanism involving all the north-eastern states to come up with a
states uniform nature/environment policy across the region.
• Social forestry initiatives near water bodies.

• Rain water harvesting in urban areas.
Water management • Extend reach of irrigation to 75 per cent.
• Capacity building exercise on water conservation.
• Sustainable water usage plan focusing on IWT, fisheries and hydropower.
• Set-up joint management groups for forest management.

• Implement schemes through the joint management group.
Community led forest management • Capacity building of indigenous institutions.

• Forest resource management plan to be developed by the community through joint
management group.
• Agro forestry initiatives.
Biodiversity and carbon trading • Reassess forest classification system through a consultative mechanism involving all the
north-eastern states.
• Carry out a thorough assessment of all roads passing through biodiversity hotspots.
Shifting of major roads away from
biodiversity hotspots • Either shift the roads or create dedicated animal corridors, by creating underpasses/over
bridges.
44
45
Policy initiatives
Overview
That government policy has a direct the region, to help ensure greater main reasons behind this. However,
bearing on economic development government spending in key sectors it is felt that the lack of a holistic
and in case of disadvantaged regions like physical and social infrastructure, approach to policy making in the
like the North-east, a proactive with the aim of providing access region has been an equal, if not a
government policy can play a major to the markets in South-East Asian greater reason behind the less than
role in giving direction and pace countries. impressive economic growth of the
to the growth of business and region.
So far results have not shown much
investment. Since the late 1990s the
progress. It has been suggested that Some of the policy initiatives that
Government of India has undertaken
a lack of consistency in the policy may be considered are listed below.
a number of important policy
environment has been one of the
initiatives to attract investment into
Recommended policy initiatives
Policy for investment promotion subsequent dilutions, including benefits to small enterprises from
partial withdrawal of excise the region and focussing on sectors
North-East Industrial and duty benefit, etc. has now been of comparative advantage. It is also
Investment Promotion Policy: suspended, when some results recommended that sectors like
The NEIIPP which came into effect were beginning to be visible and infrastructure, education, healthcare
in 2007 offered a wide array of investors’ interest was increasing and environment related projects
benefits including a 30 per cent visibly. should be brought under the ambit
capital investment subsidy, income of the policy.
tax exemption, excise duty refund, It is recommended that the policy
interest subsidy, etc. The policy may be reinstated with suitable
after going through a number of modifications to give greater
46
Supporting small businesses and to drastically reduce the permissions trade centres, revisiting border
entrepreneurs and paperwork required to set-up trade agreements, reviewing RBI
• Local entrepreneurs should businesses, secure incentives and to regulations should be taken up
be assisted with financial and run the businesses. immediately.
administrative support, especially Biodiversity: To establish the region
Land acquisition for industry
for the marketing sector so that as a biodiversity zone, cooperation
improved infrastructure can be While land acquisition across the between the authorities and
utilised well for the economic country is becoming increasingly stakeholders in North-East India,
growth of local people. difficult and time consuming, the Myanmar, and Bhutan seems to
• A North-East Innovation Fund may situation in the North-East is even be of paramount importance. It is
be created. By way of innovation, more complicated as in the hilly proposed that a subregional dialogue
a new arena of development and states and some other areas in on establishment of an international
growth can come out. Assam land transfer is restricted biodiversity zone should be started
by statute to only scheduled tribes. immediately. The primary objective
• Artisans and the handicraft
The states of the region need to of the dialogue process should be to
industry needs to be promoted
work with the central government identify a workable model for joint
through a well-coordinated
and industry to find a way so that management of the biodiversity
programme with assistance from
industrial growth is not restricted resources.
the central government. North-
eastern products should get a while protecting the interests of Myanmar focus: Increased focus
place in national and international tribal people. should be given to develop a trade
exhibitions to get further relationship with Myanmmar. The
Act east policy
promotion and branding. These border trade agreement with
activities can also have a spill-over Decentralising dialogue: While Myanmar should be revisited to
effect on the tourism industry.1 international relations dialogue is see if the number of tradable items
expected to continue to be handled through barter system can be
Ease of doing business increased. Also, connectivity to the
by the central ministry, some
amount of interaction, particularly North-East can be improved if we
India ranks 134th among 189 have direct flights from other parts
countries, according to a World Bank the adjoining provinces should be
allowed at the local level in the of India to Myanmar.
report on the ease of doing business.
On ease of starting a business, it interest of operational ease. The
ranks even lower: 166.2 The situation following initiatives are proposed to
in the north-eastern states of India facilitate such local level interactions.
is even worse. Although a number of Facilitating border trade: To
incentives are available for starting facilitate border trade with
businesses in the region, often neighbouring countries, some of 1. FICCI Report 2014 First North East Summit
the procedure and paper work the policy initiatives that had been 2. http://economictimes.indiatimes.com/news/
economy/indicators/indias-world-bank-ranking-
involved in securing these incentives discussed in earlier policy initiatives on-ease-of-business-will-improve-further-arun-
diminishes the efficacy of the like simplification of paper work, jaitley/articleshow/49564615.cms accessed
incentive schemes. There is a need helping of traders at the border October 2015
47
India at
75: Projections
for the
North-East
Implementation of the Social impact
plan aims to bring about
• Sustainable livelihood
fundamental changes in
• Improved formal and vocational education
the regions socio economic
• Improved connectivity can give access to better social amenities
structure. It is expected
• Access to power can improve the quality of Life
that by 2021-22, the region
• Access to vocational education and employment can have a positive
will emerge as one of the impact on the society.
fastest growing regions of the
country and will contribute
Economic impact
substantially to the national
• Investment of over INR5 lakh crore is expected to have a huge trickledown
GDP. The region may become a effect
hub of connectivity, trade and • Direct employment for around five million people
commerce for the South-East • Smooth trade with neighboring counties and ASEAN
Asian subregion and become a • Exponential growth in manufacturing
major player in the subregional • Exponential growth in services led by tourism.
economic development. The
regions integration with the
Environmental impact
national economic mainstream
• Reduced impact because of cleaner modes of transport.
can be complete and the
• Environmentally conscious tourism.
region may be India’s gateway
• Conservation of biodiversity.
to the east in the true sense of
• Clean energy sources like solar, wind, etc.
the word.
• Planned development can help put environmental protection mechanisms
in place.
48
Improved connectivity Growing trade
By 2021, the region is expected to Flights can connect remote parts With the proposed development plan,
be smoothly connected, with the of the region and also all South- it is expected that the North-East
rest of India, neighbouring Countries East Asian countries. Benefits may may account for at least 30 to 40 per
and ASEAN. It seems possible become visible through improved cent of India’s trade with Myanmar,
to drive down to Bangkok from farm productivity, rising GSDP, Bangladesh and Bhutan.1 The region
Guwahati in a little over 48 hours. international trade, a growing may also account for a substantial
River navigation can enable ships manufacturing base and a strong percentage of India ASEAN Trade.
from the Kolkata Harbour to come service sector. With 10 border townships, border
directly to Pandu and Badarpur. trade and joint manufacturing
activities are expected to flourish.
Rail Road Inland water ways Airports

• All state capitals • North-East ring road • Primary mode of goods • 24 operational airports
• Neighbouring countries. • Asian highway transport • Connected to Dhaka,
• Bangladesh, Bhutan, • Transit through Sylhet, Bangkok,
Myanmar. Bangladesh. Yangon.
Sector focus
Energy like TISS, IIM, IIT, IIIT and others may Environment
have institutionalised collaboration
The North-East may be producing with neighbouring countries. These Focus may grow on environmental
close to 10,000MW of surplus institutes may emerge as centres protection and safeguard
power, part of which can be sold of excellence and produce leading mechanisms are expected to be
to neighbouring countries. Shale research work. Private investment in place by 2021. Several green
Oil Exploration is likely to have in education is also likely to pick up, businesses including ecotourism can
begun by then in Assam and invariably affecting the industry. provide a further fillip to conservation
Arunachal Pradesh thereby meeting efforts. The region may be able to
a substantial part of India’s fossil Vocational education and skill improve its agricultural output in a
fuel requirements. We also hope development sustainable manner. The fresh water
to see substantial developments in resources available in the region
renewable energy like solar and wind Vocational education is expected is expected to be harnessed and
energy. Coal mining in all the north- to be institutionalised and students conservation efforts may begin to
eastern states may be regulated will be able to make a career choice show results.
and guided by a broad mining policy. while still in school. A network of
While energy (power, oil and gas) skill development centres and a Skill Tourism
is expected to become one of the University is expected to provide
most important industry in the a major fillip to skill development Improved connectivity, and a
region, the abundant availability of activities. The region may also marketing campaign can give a major
energy may also spur growth in the emerge as a major supplier of skilled boost to tourism and it is expected
manufacturing sector. manpower, particularly for service that the region may be firmly
sector industries. Increasing local established as a major ecotourism
Education demand due to higher economic destination of choice for high end
activity can help ensure that only tourists from across the world. The
The North-East is expected to higher skilled work force may North-East may account for about 10
emerge as an education hub for the migrate from the region and per cent of India’s foreign exchange
entire South-East Asia. Institutions command higher salaries. earnings from tourism.

49
About KPMG in India About FICCI

KPMG in India, a professional services firm, is the Indian Established in 1927, FICCI is the largest and oldest apex
member firm of KPMG International and was established business organisation in India. Its history is closely
in September 1993. Our professionals leverage the global interwoven with India’s struggle for independence, its
network of firms, providing detailed knowledge of local laws, industrialisation, and its emergence as one of the most
regulations, markets and competition. KPMG has offices rapidly growing global economies.
across India in Delhi, Chandigarh, Ahmedabad, Mumbai,
A non-government, not-for-profit organisation, FICCI is the
Pune, Chennai, Bengaluru, Kochi, Hyderabad and Kolkata.
voice of India’s business and industry. From influencing
We strive to provide rapid, performance-based, industry-
policy to encouraging debate, engaging with policy makers
focussed and technology-enabled services, which reflect
and civil society, FICCI articulates the views and concerns
a shared knowledge of global and local industries and our
of industry. It serves its members from the Indian private
experience of the Indian business environment.
and public corporate sectors and multinational companies,
drawing its strength from diverse regional chambers of
KPMG International commerce and industry across states, reaching out to over
2,50,000 companies.
KPMG is a global network of professional firms providing
Audit, Tax and Advisory services. We operate in 155 FICCI provides a platform for networking and consensus
countries and have more than 155,000 people working in building within and across sectors and is the first port of
member firms around the world. call for Indian industry, policy makers and the international
business community.
The KPMG Audit practice endeavours to provide robust and
risk based audit services that address member firms’ clients’
strategic priorities and business processes.
KPMG’s Tax services are designed to reflect the unique

needs and objectives of each client, whether firms are
dealing with the tax aspects of a cross-border acquisition
or developing and helping to implement a global transfer
pricing strategy. In practical terms that means, KPMG firms
work with their clients to assist them in achieving effective
tax compliance and managing tax risks, while helping to
control costs.
KPMG Advisory professionals provide advice and assistance

to help enable companies, intermediaries and public sector
bodies to mitigate risk, improve performance, and create
value. KPMG firms provide a wide range of Risk Consulting,
Management Consulting and Transactions & Restructuring
services that can help their clients respond to immediate
needs as well as put in place the strategies for the longer
term.
50
Acknowledgements
FICCI KPMG in India
• Biswajit Chakrabarty • Soumya Nath
• Kaustav Bhagavati • Laura Myers
• Puthuparambil Vinod
• Subhendu Adhikary
• Abrity Basu
• Anirban Chatterjee
• Debopam Raha
• Pradip Bhowmick
• Jiten Ganatra
• Darshini Parikh
• Rajesh Patel
• Sharon D’silva
• Aamir Munshi
KPMG in India contacts: FICCI contact:
Nitin Atroley Biswajit Chakrabarty
Partner and Head Head
Sales and Markets Ficci North-East
T: +91 124 307 4887 T: +91 361 273 3010
E: nitinatroley@kpmg.com E: biswajit.chakrabarty@ficci.com
Ambarish Dasgupta
Partner and Head
Management Consulting
T: +91 33 4403 4095
E: ambarish@kpmg.com
kpmg.com/in/socialmedia kpmg.com/in/app
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely
information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without
appropriate professional advice after a thorough examination of the particular situation.
© 2015 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss
entity. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Printed in India. (027_THL1115)

KPMG FICCI North East India 2015 PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

KPMG FICCI North East India 2015 PDF

Uploaded by

Copyright:

Available Formats

Emerging

05-10 11-16 17-22 23-32

The North-East region has great efforts by individual states. The

Strengths Weakness Opportunities Threats

2. KPMG in India and FICCI analysis 2015

Developments during the last one year

Road map for development

• Set-up Shale Oil and Gas Authority dedicated to the North-East

5. Ficci Report 2014 First North-East Summit

• Develop eight knowledge hubs across the region

• Draft a uniform environment policy across the North-East

Virtually unexplored, the North-East However, the region has so far

1. Walk through india, http://www.

2. Compiled by Datanet India from: Ministry of

A number of tourism development is also funding a number of tourism

• Outdoor advertising at airports, Wellness tourism circuits are more attractive as

Proposed tourism circuit

Guwahati • Guwahati‐Shillong‐Kaziranga‐Majuli‐Jorhat The centre is expected to have

North • North Lakhimpur/Itanagar-Ziro-Daporijo-Along-Dibrugarh North Lakhimpur may require a three

Dimapur • Dimapur‐Kohima‐Wokha‐Mokokchung‐Mon‐Sibsagar Tourist amenities are required,

Silchar • Silchar‐Imphal‐Aizawl‐Silchar River front development is required

8. http://mdoner.gov.in/accessed September 2015

Proposed tourism circuit

Agartala • Agartala‐Silchar‐Shillong‐Guwahati Development of a tribal heritage village

Bagdogra/ • Bagdogra‐Kalimpong‐Gangtok‐East Sikkim‐Darjeeling‐Bagdogra

Proposed ideas Actions recommended

• Institute North-East ecotourism guidelines and certification.

• Thorough documentation of the history and the folklore.

10. KPMG in India and FICCI porposed 2015

Proposed ideas Actions recommended

• Convention facility with a seating capacity for 3000 people in Guwahati.

Proposed initiative Suggested timeline

North-East tourism marketing initiative Ongoing

Setting up North-East tourism development authority 2016

Notification of ecotourism only zones 2016

North-East ecotourism guidelines and certification 2017

Model ecotourism project in each state 2017

Thorough documentation of history and folklore 2018

Heritage hotel in Imphal, Agartala 2020

Develop 24 eco resorts 2020

Convention facilities in Guwahati, Dimapur, Moreh, Agartala 2020

11. KPMG in India and FICCI porposed 2015

Status of power generation

Tripura 472 913

North-East 5,075 10,253

Available potential in the region: Total identified potential (Hydropower)

A number of incentives are also Capacity yet to be developed (Hydropower)

Power: Key challenges and way forward

Resettlement and rehabilitation Transmission and distribution

Projects Actions recommended

• Speedily commission third unit of the project.

• Address safety and environment concerns before construction begins.

• Objective environment and economic cost-benefit analysis for each project.

Proposed ideas Actions recommended

• Strengthen the link between the eastern and north-eastern Grid.

Sikkim • Include Sikkim in the North-East Power Grid.

• Regional Small Hydropower policy to facilitate growth of small hydropower projects.

Proposed initiative Suggested timeline

Strengthen link between eastern grid and north-eastern Grid 2016

25 per cent of power procurement from Bhutan to be allotted to North-East 2016

Include Sikkim in North-East Power Grid 2016

Set-up Shale Oil and Gas exploration Group 2017

11. KPMG in India and FICCI porposed 2015