The Great Turnaround of the Decade

Assam is no longer known to the world as the land of tea and timber. The emerging economic scenario of the state, under the dynamic leadership of Chief Minster Tarun Gogoi, is one of tremendous hope and confidence as investment proposals worth Rs 6,000 crores have come to the state within this calendar year alone. The step taken by Mr Tarun Gogoi last year to meet Mr. Ratan Tata, chairman of Tata sons has resulted in Mr. Ratan Tata scheduling a business visit to Assam in March this year.

The state has begun to lure serious investors. Four major cement plants entailing a total investment of Rs 3000 crores are on the cards. Jaiprakash Associates Ltd (JAL), the Jaypee Group flagship, has inked as MOU with state government-owned Assam Mineral Development Corporation (AMDC) for setting up a 2 million cement plant.

This project will come up at Umrangshu in the North Cachar hills at an estimated cost of Rs 1,050 crore. Similarly, Birla Corporation, an MP Birla group company is in the process of setting up a 1 million tonne cement unit in Assam. The BK Group of companies promoted Calcom Cement India Ltd plans to set up a Greenfield cement plant too.

The plant will produce 1.9 million tonnes per annum (MTPA) of cement and the company will invest around Rs 500 crore for the first phase.

A Rs 600 crore bio-diesel refinery in Balipara is coming up besides industrial parks across the state. A plastics park in Tinsukia, a bamboo park in Jagiroad, a Jute park in Kharupetia a textile park in Sipajhar, a couple of food parks and a banana park are going to dot the rich natural landscape of the state. The most awaited park is the IT park coming up in Guwahati. Needless to say an IT university is also on the cards.

It is a known fact that insurgency continues to cast its forbidding shadow, but the heartening truth is that despite the fears and doubts, the industrial development of Assam has been on the upswing in the last couple of years.

In a recent interview Mr. Gogoi confidently stated that the Tatas are ready with a few investment proposals lined up. The Tata group is setting up a 5 star hotel in Guwahati.

Tata Consultancy Services (TCS) has already set up a learning centre. The Tata Institute of Social Sciences (TISS) will start operations soon and the land for the project has already been allotted. The cost of setting up the institute will be borne jointly by the state government and TISS. A few other companies are planning to set up a few more hotels in the state. This will facilitate our tourism promotion drive.

Mr. Gogoi's admirable strength is his ability to strike a personal rapport with whoever he meets. He personally met with industrialists Anand Mahindra and J.N Godrej to acquaint them with the development plans he has initiated and reassure them about the security and support he can offer. Mr. Gogoi says “I personally write letters to them and encourage them in bringing investments to the state. Land is a major issue for industrial development. And to make things smooth, we have initiated the concept of a land bank and if we get genuine investment proposals, land will not be a problem”.

The Assam government's industrial arm, AIDC, is being revamped, the government has appointed Crisil to study and submit a report on restructuring and revamping AIODC with the detailed future roadmap.

The state government also plans to set up industrial corridors around Guwahati and Tinsukia. An agriculture hub is being planned at Boko near Guwahati. What's more, the Centre along with the Assam government is jointly setting up the Rajiv Gandhi Institute of Petroleum Studies, the National Institute of Design and the National Institute of Packaging. Incidentally, Assam has recently come up with the new industrial policy, which provided 99% tax exemption under the Assam Value Added Tax Act, 2003, and Central Sales Tax Act, 1956 to “eligible” units which manufacture goods in the state.

One deterrent for investors is the road, air and rail links. The other is electric supply. To correct this drawback the Asian Development Bank (ADB).

In fact, Assam is looking to generate 2043.7 mw of additional power in next the couple of years. The state government is in talks with Oil India Ltd to initiate joint venture power project.

With the Centre making massive investments on the connectivity front, road, rail and air links are on expansion mode. Mobile telephony penetration in the region is growing too.
A sense of hope and buoyancy are sweeping Assam, the State, which successfully staged the 33rd National Games in February 2007. Initiatives are being taken to inject investment on a massive scale into key sectors of industry, especially oil and natural gas, which Assam possesses in abundance.

Oil and Natural Gas Corporation (ONGC) is planning to pump in Rs 2000 crore investments in Assam. GAIL is setting up a Rs 5460 crore Gas Cracker Project. Several private sector industrial giants, including Hindustan Lever, Godrej, Emami, Revlon and Ujala, have set up units in the State.

On the agricultural front, an additional 6.87 lakh hectare of irrigation potential has been created since 2001. Regarding electricity generation, Assam has succeeded in tapping about $250million from the Asian Development Bank to help power projects in the State.
In the wake of the economic resurgence, a giant leap in development is on the cards. In order to achieve this, the Gogoi Government is channelling the State's enormous natural and human resources into creating wealth and jobs, especially in rural areas.

According to official statistics, as many as 4,100 ULFA and Bodo militants have surrendered and have been provided with self-employment under the 100 percent marginal money and other schemes. The Gogoi Government hopes to gradually mitigate militancy in the next few years.

Assam is strategically located sharing interstate borders with Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and West Bengal and international borders with Bangladesh and Bhutan. With prospects of reopening of the historic Stilwell Road brightening up following talks between China, Myanmar and India, Assam is poised to become the hub of trade and commerce activities and the gateway to Southeast Asia.

Besides Agriculture, horticulture, floriculture and sericulture are also being given extra thrust. There is also a revival of tourism. Tourist arrivals have doubled. The North Cachar Hills, a district garlanded by hills, where mists roll over the lush green tops at dawn and the sun sets in all its glory. This district is often referred to as the Switzerland of the East. The undulating hills and valleys, gently flowing streams and waterfalls, with breeze wafting across the paddy fields and the bamboo forests, the temples dotting the State reinforce the belief that Assam is truly the Abode of the Gods.

The State places high priority for employment generation through production of Eri, Muga and Silk. The world famous Muga has huge demand outside the State and Abroad. About 2.4 lakh families partially earn their livelihood from the sector. A special scheme for promotion of Eri and Muga would be launched in the State during the current year. Handloom & Textile sector is providing direct and indirect employment to about 25 lakh families of the State. During last three years, 11,000 weavers have been provided with looms and accessories. 1.89 lakh bungles of yarns were distributed to the weavers under Chief Minister's Asom Bikash Yojana during 2008-09. A Health Insurance Scheme has been introduced and 4.45 lakh weavers have benefited. The State Government will extend the health insurance benefit to 3 lakh weavers in the current year and will distribute 2.84 lakh bundles of yarn among poor weavers. A National Institute of Design will be established in the State. The work for development of Handloom Mega Cluster in Sivasagar district with an outlay of Rs 70 crore has begun with Central assistance.

With the State Government's effort of establishing new Engineering Colleges and encouraging private Institutions, the total intake capacity has gone up to 2,913. Infrastructure in the existing engineering colleges is being upgraded. For the development of technical education, the State Government proposes to spend about Rs 70 crore during the current year. Job oriented courses like IT, Computer Engineering and Computer Applications have been introduced in Engineering Colleges and Polytechnics. Centres of Excellence would be set up in 7 ITIs and 13 ITIs would be upgraded.

The State Government has set up Srimanta Sankardeva University of Health Sciences to impart health education. All medical colleges and medical institutions of the State will come under the new university. The Bodoland University has started functioning recently at Kokrajhar. A University of Science & Technology is proposed to be set up soon in the State. New Engineering Colleges would be set up at Kokrajhar, Karimganj and Dhemaji. Jorhat Science College has already been upgraded and renamed as Jorhat Institute of Science and Technology. Financial assistance is being extended to Gauhati and Dibrugarh Universities for infrastructure development. Krishna Kanta Handique State Open University has been set up to promote distant learning and rural colleges are being given financial support for infrastructure development. A National Law School and Judicial Academy is going to be set up in the State. Construction work for the NE Judicial Officers Training Institute is in progress.

Assam is rich in diverse and colourful ethnic culture. Its preservation is a priority for the State. To provide a vibrant and flourishing cultural environment in the State, various programmes are being organized in cooperation with National School of Drama and Sangeet Natak Academy. Cultural complexes are also being set up in various parts of the State. To encourage participation in cultural activities and promote excellence, Siu-ka-pha Award has been instituted by the State Government to honour the outstanding personalities in this field.

Majuli, which symbolizes the unique cultural heritage of the State, is being developed with the help of a special project. The State Government proposes to set up the Sangeet Natak Academy of Assam. Jyoti Bishnu Prakalpa will be set up in every development block. Funds have already been earmarked for construction of five such Prakalpas in the State. The State Government will continue to construct sport complexes, stadia and swimming pools in different parts of the State to provide recreational facilities. A state Sports Authority has already been set up in the State. A North East Regional Centre of Lakshmibai National University of Physical Education will be established at Guwahati soon.

Tourism potential of the State is being tapped with the help of the private sector and several development projects for promotion of tourism are being implemented in the State. A Food Craft Institute at Nagaon and a Hotel Management Institute at Jorhat are being set up. As a result of these activities, flow of domestic tourists has increased.

Talking to the Assam Tribune, Industries and Commerce Minister Pradyut Bordoloi revealed that the government has decided to accord mega-project status to investments worth more than Rs 100 crores and in addition to the incentives offered in the Special Industrial and Investment Promotion policy of the Government of India, the State Government would accord different facilities to such projects as per requirement. He said that the investment proposals received in recent months include setting up of cement plants, paper mills, steel factory etc, while, Pepsi has also shown interest in setting up a plant in the State. He said that the signing of a MoU for the setting up of a paper mill in Matia in Goalpara with investment of Rs 1550 crores is also a positive development and hoped that the State would continue receiving such investment proposals in the days to come.

In addition to formation of the high powered committee, the State Government has already started ensuring “fast track clearance” of the projects and different departments including Pollution Control Board have been given stipulated time to examine the projects to do the needful.

Commenting on the change in scenario, Commerce Minister Pradyut Bordoloi said that overall improvement of the State's scenario is one of the main reasons because of which the investors have started showing interest in investing in the State, while, the perception of the potential investors on the State situation have also started changing.

“The investors must have felt that investing in Assam make economically viable to invest in Assam. We have also created a land bank where all the information of availability of land is available and any investor can have a look on the same before taking the decision to invest in the State,” he added.