manipur - ibef · pdf file• in the state’s local language, manipur ... rare...

MANIPURApril 2010

2

Investment climate of a state

Resources/Inputs

Incentives to industry Physical and social infrastructure

Regulatory framework

• Skilled and cost-effective labour• Labour market flexibility• Labour relations• Availability of raw materials and natural

resources

• Tax incentives and exemptions• Investment subsidies and other incentives• Availability of finance at cost-effective terms• Incentives for foreign direct investment (FDI)• Profitability of the industry

• Procedures for entry and exit of firms• Industrial regulation, labour regulation, other

government regulations• Certainty about rules and regulations• Security, law and order situation

• Condition of physical infrastructure such as power, water, roads, etc.

• Information infrastructure such as telecom, IT, etc.

• Social infrastructure such as educational and medical facilities

Investment climate of a state is determined by a mix of factors

MANIPUR April 2010

3

Advantage Manipur

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Manipur

MANIPUR April 2010

Contents

4

Manipur – State Profile

• In the state’s local language, Manipur means “the land of jewels“. It is a hill state situated in the eastern-most corner of Northeast India. The state covers an area of 22,327 sq km and shares borders with other northeastern states of Nagaland, Mizoram and Assam and international border with Myanmar.

• Manipur has nine administrative districts. Imphal is the state capital and its largest city.

• Depending on the altitude of hill ranges, the climatic condition varies from tropical to sub-alpine. Important rivers flowing through the state are the Manipur, Imphal, Iril, Nambul, Sekmai, Chakpi, Thoubal and Khuga. LoktakLake, the largest fresh-water lake in the Northeast, is situated in the state.

• Forest cover occupies nearly 64 per cent of the total geographical area of the state.

• Meeteilon (Manipuri) is the state language, although, English and Hindi are also commonly used for communication.

Manipur April 2010ADVANTAGE MANIPUR

5

Conducive agro-climatic conditions for fruits and vegetables

Link with the Southeast Asian countries

Rare medicinal and aromatic plants

Advantage Manipur … (1/2)

Manipur has significant potential for growing various horticultural cropsbecause of varied agro-climatic conditions. Growing of fruits andvegetables on small plots of land provides additional income to thefarmers undertaking crop-husbandry.

Moreh Town offers a feasible land-route between India and Myanmarand to the Southeast Asian countries. A land customs station exists inMoreh. An Integrated Check Post (ICP) is coming up there, to becompleted by the end of 2010.

A wide variety of rare and exotic medicinal and aromatic plants grow inManipur. Entrepreneurs get easy access for processing and marketing suchplants without facing many bureaucratic hurdles.


6

Facilitating transport infrastructure

Beautiful tourist destination

Availability of skilled labour

Imphal has one airport. Air India provides air-cargo services. Threenational highways run through the state. A railway line is underconstruction on the Manipur-Assam border as a national priority project.

Imphal city is surrounded by green verdant hills with salubrious weather. Itis a delight for tourists with a variety of attractions such as lakes, parksand mountains.

With 70.5 per cent literacy rate, Manipur offers a largely educatedworkforce. Knowledge of English is an added advantage of the Manipuriworkforce.

Manipur April 2010

Advantage Manipur … (2/2)

ADVANTAGE MANIPUR

7

Manipur in figures

Parameter Manipur All-states Source

Economy

GSDP as a percentage of all states’ GSDP 0.2 100.0 CMIE, 2006-07, current prices

Average GSDP growth rate (%) 5.9 7.5 CMIE,1999-2000 to 2007-08,

Per capita GSDP (US$) 541.7 998.1 CMIE, 2007-08

Physical Infrastructure

Installed power capacity (MW) 50.9 98,996.4 Central Electricity Authority,as of March 2009

National highway length (km) 959 70,548.0 Ministry of Road Transport & Highways, 2007-08

Airports (No) 1 133 Industry sources

Social indicators

Literacy rate (%)** 70.5 64.8 Census of India, 2001

Birth Rate (per 1,000 population)** 14.6 23.3 Central Bureau of Health Intelligence, 2007

Ease of doing business

FDI inflows (US$ billion) 0.06* 102.1 Department of Industrial Policy and Promotion, April 2000 to October 2009

Outstanding investments (US$ billion) 2.0 1,709.7 CMIE, as of December 2008

*FDI Inflows for the Reserve Bank of India-designated Guwahati-region, which includes Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura; **Census 2001.


8

Key industries with policy thrust and factor advantages

Medium HighLow

Medium

High

Industry attractiveness matrix

Sericulture

Khadi and Village

Food processing

Tour ism

Handicrafts

*Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital

Bamboo processing

Handlooms


Pol

icy

thru

st

Factor advantage

9

Advantage Manipur






MANIPUR April 2010

Contents

10

Socio-economic snapshot of Manipur

Parameters Manipur

Capital Imphal

Geographical area (sq km) 22,327

Administrative districts (No) 9

Population density (persons per sq km) 103

Total population (million)* 2.2

Male population (million) 1.1

Female population (million) 1.1

Population growth rate 1991-2001 (%) 24.9

Sex ratio (females per 1,000 males) 974

Literacy rate (%)* 70.5

Male (%) 80.3

Female (%) 60.5

Birth Rate (Per 1,000 persons) 14.6

Sources: Economic Survey of Manipur, 2008-09, Directorate of Economics and Statistics, Census 2001

Manipur April 2010STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

11

Manipur’s GSDP

• At current prices, the total Gross State Domestic Product (GSDP) of Manipur was about US$ 1.11 billion in 2007-08.

• The average GSDP growth rate from 1999-2000 to 2007-08, was about 5.95 per cent.

• The primary and tertiary sectors contribute around 65 per cent to the total GSDP. Within the primary sector, agriculture and allied activities have registered the highest growth during this period.

Manipur’s GSDP(US$ billion)

Source: CMIE

0.70

0.63

0.68

0.71

0.82

0.87

0.91

1.03

1.11

0.00 0.50 1.00 1.50

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

Manipur April 2010

CAGR5.95%

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

12

• In 2007-08, the total Net State Domestic Product (NSDP) of Manipur at current prices was about US$ 1.25 billion.

• From 1999-2000 to 2007-08, the average NSDP growth rate was about 8.9 per cent.

Manipur’s NSDP(US$ billion)

0.63

0.58

0.63

0.69

0.82

0.90

0.99

1.13

1.25

0.00 0.50 1.00 1.50

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

Manipur April 2010

Manipur’s NSDP

CAGR8.91%

Source: CMIE


13

Manipur’s economy is driven by tertiary and primary sector

• In 2007-08, the tertiary sector contributed 56.6 per cent to the state’s GSDP at current prices, followed by the primary sector at 35.0 per cent.

• The secondary sector’s share in GSDP was 8.3 per cent in 2007-08 vis-à-vis 7.3 per cent in 1999-2000. This growth is driven by registered and un-registered manufacturing, which registered a growth of 7.6 per cent between 1999-2000 and 2007-08.

• The primary sector’s growth was due to the contribution of agriculture, forestry and fishing. It recorded a growth of 6.9 per cent between 1999-2000 and 2007-08.

Percentage distribution of GSDP

Source: CMIE

Manipur April 2010

32.1 35

7.3 8.3

60.6 56.6

0

20

40

60

80

100

1999-00 2007-08

Primary Sector Secondary Sector Tertiary Sector

CAGR

6.9%

7.6%

4.9%


14

Per capita GSDP

• In 2007-08, the state’s per capita GSDP was US$ 541.7.

• The per capita GSDP increased at a CAGR of 7.1 per cent between 1999-2000 and 2007-08.

Source: CMIE

Per capita GSDP

(US$

)

314.0283.2 301.8

324.3376.2

409.2446.8

495.1541.7

0.0

100.0

200.0

300.0

400.0

500.0

600.0

1999-2000

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08


15

Key industries in Manipur

Key industries

• Khadi and village industry

• Handlooms and handicrafts

• Sericulture

• Food processing

• Bamboo processing

• Tourism

• Manipur has abundant natural resources that offer potential for the development of the infrastructure and industrial sectors.

• The Manipur Industrial Development Corporation Limited (MANIDCO) and Small Industries Development Organisation (SIDO) are responsible for industrial development in the state.

• Other important corporations include Manipur Handloom & Handicrafts Development Corporation Limited(MHHDCL), Manipur Electronic Development Corporation Limited (MANITRON) and Manipur Food Industries Corporation Limited.

• As of March 2006, there were 10,264 registered small scale industries (SSI), both SIDO and non-SIDO. The total investment was about US$ 9.4 million in plant and machinery and they provided employment to 53,719 persons.


16

Manipur has abundant forest resources

Crop Annual production (‘ooo tonnes)

Rice 376

Natural Rubber 0.1

• Natural forests cover about 64 per cent of the total geographical area of Manipur. Agriculture has a significant share in the state domestic product and provides employment to about 52.2 per cent of the total workers in the state.

• Teak, pine, oak, uningthou, leihao, bamboo, cane, etc., are important forest resources. In addition, rubber, tea, coffee, orange, and cardamom are grown in the hill areas. Food and cash crops are grown, mainly, in the valley region.

• Major fruits grown in the state are pineapple, lime, lemon, banana, orange, papaya, plum and passion fruit.

• Rice is the staple food of Manipur and is grown in both the hills and the plains. In 2006-07, rice accounted for about 98 per cent of the total food grain production in the state.

As of 2006-07Source: CMIE


17

• As of December 2008, the outstanding investment in the state was US$ 2.0 billion.

• The electricity sector accounted for about US$ 1.8 billion or 87 per cent of the state’s total outstanding investments.

• The services, irrigation and construction sectors accounted for the balance.

Sector-wise investments

Source: CMIE

Break-up of investments by sector

87%

9%4%

1%

Electricity

Services

Irrigation

Construction


18

Advantage Manipur






MANIPUR April 2010

Contents

19

Road network

• The state has three national highways, the arterial one being NH-39. It connects lmphal with Dimapurin the neighboring state of Nagaland. From Imphal it also runs for another 110 km southeast to the international border town of Moreh on the Indo-Myanmar border.

• The NH-53 connects Imphal with Jirighat on the Manipur-Assam border. The NH-150 runs southwards, connecting Manipur with Seling in Mizoram.

• The Government of India has a trilateral agreement with Thailand and Myanmar to construct a trans-Asian highway connecting India (through Manipur) to the two countries.

• The Manipur State Road Transport Corporation (MSRSTC) provides state road transport services.

Road type Road length (Km)

National Highways 959

State Highways 668

Major district roads 964

Other district roads 1,013

Source: Manipuronline.in

Manipur April 2010INFRASTRUCTURE STATUS

20

Airports and Railways

Domestic Airport

• Manipur has a domestic airport at Imphal, the Tulihal Airport, which is located about 8 km from the heart of the city.

• The airport is being expanded to increase parking space for more aircrafts and to make it an international airport. A new terminal building with cold-storage facilities is in the pipeline.

• The only major functional railhead linking Manipur with the rest of India is at Dimapur (in the state of Nagaland), 215 km away from Imphal.

• A railway-line from Jiribam (on the Manipur-Assam border) is under construction as a national priority project. This railway line is expected to connect Imphal with the rest of India by 2012-14.

Imphal


21

Power

Installed Power Capacity(MW)

Source: Central Electricity Authority

• As of March 2009, Manipur had a total installed power generation capacity of 50.9 MW, all of it controlled by the state. It consisted of 45.5 MW of thermal and 5.4 MW of renewable energy sources.

• The Manipur Renewable Energy Development Agency (MANIREDA) has electrified with solar home lighting systems some 93 remote villages in the Churachandpur district and one in the Bishnupur district.

• Hydropower majors such as Satluj JalVidyutNigam Limited (SJVNL) and National Hydroelectric Power Corporation Limited (NHPC) are jointly setting up a mega hydro electric power project at Tipaimukh with an investment of US$ 2 billion. On completion, the project would have six generating units of 250 MW each totalling to 1,500 MW.

30.6

48.6 46.9 46.9 50.9 50.9 50.9 50.9

-

10.0

20.0

30.0

40.0

50.0

60.0


22

Telecom infrastructure

Telecom infrastructure

Internet/broadband subscribers: 11,654*

Post offices: 697**

Telephone connections provided: 48,245**

Telephone exchanges: 54*

Telecom operators in Manipur

• BSNL

• Bharti Airtel

• Aircel Limited

• Vodafone Essar

• Reliance Communications

• Tata Indicom

• Dishnet Wireless

• IDEA Cellular

• As of August 2009, the state had 11,654 internet and broadband subscribers.

• As of March 2008, the state had 54 telephone exchanges with 48,245 telephone connections.

• There state also has 697 post offices and two telegraph offices.

*As of August 2009**As of 2007-08Sources: BSNL, Economic Survey of Manipur, 2008-09

Source: Cellular Operators Association of India


23

• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), two projects, costing US$ 11 million, have been sanctioned for Imphal.

• The projects have been sanctioned for completion between 2007-08 and 2009-2010. Key areas of development are solid waste management and preservation of water bodies.

• A sewerage treatment plant has been commissioned at Lamphlpet by the Manipur Government at a cost of US$ 4.6 million. A sewerage infrastructure project costing US$ 29.3 million is being executed at Imphal.

Urban infrastructure


24

Education sector … (1/2)

Educational infrastructure*

• Universities: 2• Colleges for general education: 62• Colleges for professional education: 69• Industrial Training Institutes (ITI): 7

• The number of educational institutions increased from 538 in 1950-1951 to over 4,222 by the end of 2004-05. They now comprise 4,089 schools, 62 colleges, 69 colleges for professional education and two universities.

• The Education Department of the Government of Manipur regulates the education system of the state. The department has four sub-entities, one each for university and higher education, school education and adult education as well as the State Council of Educational Research and Training.

• According to the Census 2001, Manipur had a high literacy rate of 70.5 per cent as compared to the other states.

*As of 2004-05Source: Economic Survey of Manipur, 2008-09,

Literacy Rates (%)

Literacy rate 70.5

Male literacy 80.3

Female literacy 60.5

Source: Census 2001


25

Manipur’s education statistics*

Schools (No) High/Higher secondary: 706

Students enrolled (No)

Primary: 360,000Upper Primary: 120,000High/Higher secondary: 250,000

Pupil-teacher ratio

Primary: 21Upper primary: 17Secondary: 19

• Several programmes including the National Programme of Nutrition, support primary education (mid-day meals scheme). The state also promotes education for girls.

• Under the Union Government’s National Literacy Mission (NLM), the State Government has implemented the Total Literacy Campaign (TLC) for the non-literate population in the age group of 15 to 35 years. As of March 2007, there were 260,000 persons enrolled under TLC. A Post Literacy Programme (PLP) has been launched for age groups above 35 years. As of December 2007, there were 240,000 persons enrolled in the PLP.

• The State Literacy Mission Authority (SLMA), Manipur, was constituted as per the directive of the NLM Authority. The project is funded on sharing basis between the Government of India and the State Government.

*As of 2004-05Source: Economic Survey of Manipur, 2008-09

Manipur April 2010

Education sector … (2/2)

INFRASTRUCTURE STATUS

26

Health infrastructure

Health Infrastructure - 2008

• Hospitals: 13• Primary health centres: 72• Sub-centres: 420• Community health centres: 16• Dispensaries: 20

Health Indicators

Population served per hospital/ dispensary

4,660

Persons served per hospital bed 1,100

Birth rate* 14.6

Death rate* 4.5

Infant mortality rate** 11

Sources: Ministry of Health and Family Welfare, Economic Survey, 2008-09*Per thousand persons**Per thousand live births

• The health infrastructure of the state comprised 13 hospitals, 72 primary health centres, 420 primary health sub-centres, 16 community health centres and 20 dispensaries as of 2008.

• Various health aAnd family welfare programmes of the state are as follows:

• Rural health scheme

• National Malaria Eradication Programme (NMEP)

• National Leprosy Control Programme (NLCP)

• National T .B. Control Programme (NTCP)

• National Programme for Control of Blindness (NPCB)

• Maternal Child Health-Cum-Expanded Programme on Immunization

• National Aids Control Programme

• National Iodine Deficiency Disorder Control Programme (NIDDCP)

• National Rural Health Mission (NRHM)Source: Economic Survey of Manipur, 2008-09


27

Cultural infrastructure

• Manipur has its distinct art forms. The various styles of Manipuri dances include Ras Lila, NupaPala, Pung Cholom, Maibi dance and KhambaThoibi dance.

• The Manipur State Museum and Sekta Archeological Museum preserve the state’s ancient heritage.

• A number of festivals are celebrated in Manipur such as Lai Haraoba, Yaoshang (Dol Jatra), RathaJatra, festival of Kuki Chin Mizo, Gang-Ngai (festival of Kabui Nagas) and Chumpha.

• Theatre and society are closely linked in Manipur. Shumang Iila and Phampak Iila (stage drama) are the two popular types of theatre. The Manipur Dramatic Union, Arian Theatre, Chitrangada NatyaMandir, Society Theatre, Rupmahal, Cosmopolitan Dramatic Union and the Chorus Repertory Theatre are prominent theatre groups in the state.

• Many indigenous games are played in the state, such as Sagol Kangjei (Manipuri Polo), Yubi Lakpi(Manipuri Rugby), Hiyang Tannaba (Boat Race), Mukna (Manipuri Wrestling), Kang, Thang-Ta and SaritSarat.

• Important stadiums in the state include the Kondompoksi Stadium, the Khuman Lampak Main Stadium and the Mapal Khagjeibung Ground, all situated in Imphal.


28

Industrial infrastructure

Infrastructure Description

Nilakuthi food park Food park to be completed by end of 2010 at Nilakuthi on a land-area of about 31 acres. The Manipur Food Industries Corporation Limited is the implementing agency. The park will host 40 to 50 food processing units for which common facilities will be provided. A bridge connecting NH-39 and Nilakuthi is to be constructed for the convenience of the food processing units.

Integrated Infrastructural Development project (IID)

The Government of India has sanctioned the IID project at Moreh with a total project cost of US$ 1.3 million. Land acquisition is under way.

Export Promotion Industrial Park (EPIP)

The Government of India has approved the EPIP project at Khunuta Chingjin in the Kakching sub-division of Thoubal district at a project cost of US$ 3.2 million. Land acquisition is under way.

Trade Centre The Government of India has sanctioned US$ 0.4 million for construction of two trade centres, one at Moreh and another at Imphal. Construction of the Moreh Trade Centre is complete and that of the Imphal Trade Centre at Porompat , is ongoing.

Industrial Growth Centre Previously decided to be located at Lamlai Napet and thereafter shifted to Chingaren, construction is expected to start once venue has been finalised.


29

Major investments in the infrastructure sector

Infrastructure type Investments (US$ million)

Power* 1,756.2

Railways 158.2

Airport 5.3

Total 1,919.7

• As of December 2008, over US$ 1.9 have been invested towards ramping up Manipur’s infrastructure sector.

• Over 91 per cent of the investments in infrastructure have been made in the power sector (power generation and distribution).

• Railways and air transport are the other two infrastructure sectors that have attracted investments in the state.

*Generation and distributionSource: CMIE


30

Advantage Manipur






MANIPUR April 2010

Contents

31

North East Industrial and Investment Promotion Policy (NEIIPP), 2007

Aim: To promote the Northeast as an attractive investment destination through several concessions and incentives.

Key features:

• Industries under this policy are eligible for incentives for a period of 10 years from the date of commencement of commercial production.

• All new units as well as existing units that undergo substantial expansion (minimum 25 per cent increase in fixed capital) and start production before 2017 would qualify for incentives.

• Incentives would be available for all existing industrial units and upcoming units anywhere in the Northeast .

• A high level monitoring committee/advisory committee would oversee the implementation of the NEIIPP.

• NEIIPP would not be applicable to peripheral activities such as preservation while storage, cleaning, packing, re-packing, labelling or re-labelling, sorting, etc.

• The North East Industrial Development Finance Corporation (NeDFI) will act as the nodal agency for disbursal of subsidies.

• NEIIP, 2007, replaced the North East Industrial Policy, 1997.

Sector-specific policies … (1/11)

Manipur April 2010STATE POLICIES AND INCENTIVES

32

NEIIPP, 2007

Incentives and concessions:

• 100 per cent excise duty exemption on finished product made in the Northeast.

• 100 per cent income tax exemption for industrial units.

• Capital investment subsidy increased from 15 to 30 per cent for plant and machinery up to US$ 360,000 per unit. For units above US$ 360,000 of and up to US$ 7.5 million, an empowered committee approves. For units above US$ 7.5 million, the Union Cabinet approves.

• Interest subsidy to be given at the rate of 3 per cent on working capital.

• 100 per cent reimbursement of insurance premium.

Manipur April 2010


STATE POLICIES AND INCENTIVES

33

New Industrial Policy of Manipur, 2002

Vision: To facilitate rapid and substantial industrial development in the state through enhanced investment, infrastructure and institutional support, incentive packages and utilisation of existing resources.

Key features:

• Create necessary conditions for maximum possible utilisation by tapping locally available raw-material and human resources for industrialisation.

• Develop industrial infrastructure in selected areas by providing common facilities in a compact area for specialised categories of industrial units.

• Promote export oriented industries with a view to exploit the emerging market opportunities in the neighbouring countries.

• Develop marketing facilities for industrial products.

Manipur April 2010



34


Vision: To facilitate rapid and substantial industrial development in the state through enhanced investment, infrastructure and institutional support, incentive packages and utilisation of existing resources.

Key features:

• Develop village and small scale service and business enterprises (SSSBE) to provide self-employment to educated youths.

• Revive and rehabilitate sick industrial units in the state.

• Expedite formalisation and development of cross-border trade with Myanmar.

• Provide investor-friendly environment by removing procedural bottlenecks and legal hurdles.

• Develop and promote the tourism industry in the state.

• Enhance value addition in products and processes through rapid technology upgradation.

• Encouraging quality control, standardisation and competitiveness of the local products.

• Encourage industry based on medicinal plants, and research and development in the field.

Manipur April 2010



35



• The state government will make efforts to provide the following:• Developed land with infrastructural facilities.• Undeveloped land to manufacturing industrial units only including village industries sector.

• The developed land will be allotted on hire purchase basis with suitable terms of instalments, subsidising the cost of land development as follows:

• 25 per cent for small scale industry units.• 30 per cent for export-oriented units (EOU) and units owned by weaker sections.• 15 per cent for large and medium units.

• Available sheds will be provided to SSI units in infrastructural centres on monthly rental basis. Subsidy on the monthly rent will be provided at 50 per cent for entrepreneurs of all categories and 55 per cent for the EOUs and units set up by weaker sections.

• Subsidy at US$ 215 per trainee or 50 per cent of the actual cost of training, whichever is less subject to a maximum ceiling of US$ 645 per year, shall be provided to industrial units which depute their workers for technical training in government recognised or other reputed training institutions.

Manipur April 2010



36



• Industries established in thrust sectors will be provided 30 per cent subsidy on the total capital investment on plant and machinery and miscellaneous fixed assets subject to ceiling of US$ 30,000 per unit. For EOUs, the rate of subsidy shall be 35 per cent subject to a maximum of US$ 40,000 per unit.

• SSIs will be provided an interest subsidy of 5 per cent per annum on working capital and term loan taken from banks and financial institutions.

• Power subsidy will be provided to SSI units for the first five years from the date of commercial production of the unit at the rates fixed by the government from time to time.

Manipur April 2010



37



• Subsidy of 50 per cent will be admissible to meet the cost of feasibility study and project report preparation subject to a maximum ceiling of US$ 1,085 in each case.

• Subsidy of 50 per cent will be admissible to meet the cost of technical know-how obtained by SSI unit from organisations approved in advance by the Government of Manipur.

• For individual units purchasing of raw-materials directly, a concessional rate of 4 per cent of value of raw-materials will be admissible as full tax set-off against any sales tax paid by them.

• SSI units, village and cottage industrial units will be reimbursed in full the stamp duty and registration fee for securing loans and other incentives from financial institutions.

• For purchase of testing equipment, 25 per cent subsidy will be admissible to SSI units. The subsidy will be 30 per cent in case of weaker section and EOUs..

Manipur April 2010



38



• A state capital investment subsidy for the purpose of modernisation/expansion/diversification at the rate of 15 per cent or US$ 2,000, whichever is less, will be admissible for the purchase of plant and machinery.

• All eligible units get exemption from payment of earnest money and security deposits on items for which they are registered on tender by the state government agencies.

• All IT industries employing a minimum of 25 persons would be entitled to the following:

• 50 per cent concession on floor space rentals for a maximum of five years

• All IT industries set up by local entrepreneurs would be given 50 per cent concession on floor space rentals for a period of two years from the date of setting up of the unit, subject to a ceiling, to be notified by the state government.

Manipur April 2010



39

Manipur IT Policy, 2003

Aim: To transform Manipur into an Information Technology driven economy.

Key objectives:

• To set up the institutional framework to implement and monitor the IT Policy.

• To use e-Governance to upgrade the standard and quality of administration and to provide citizen-oriented, efficient and cost-effective government.

• To promote investments and growth in IT industry and encourage private sector initiative in IT-related infrastructure and services so as to increase the contribution of IT in the economic growth of the state.

• To provide adequate infrastructure in the state for the IT sector.

• To encourage greater IT literacy and education.

• To generate IT-related employment opportunities for the educated youth.

• To use the power of IT to enhance earning capacity of the citizens for a better quality of life.

Manipur April 2010



40


Initiatives:

• The government to undertake major administrative reforms, redefining its role and recasting the structure and functioning of its administrative departments to facilitate adaptation to IT.

• The state to establish a backbone network – Manipur State Wide Area Network ( MAN-NET) – for voice, data and video transmission and dissemination.

• The state government departments to establish departmental local area networks/intranets.

• The government to consider issuing electronic SMART cards to citizens with multi-functions that enable citizens access interactive services, make payments, and serve as ration cards, driving licenses and identity cards, etc.

• Internal communication to be improved by increasing the use of e-mail, bulletin boards and video-conferencing in the government.

Manipur April 2010



41


Initiatives:

• A website of the state would be set up by the IT Department in association with the National Informatics Centre (NIC), which will interconnect the website of every department and organisation, who in turn, shall develop their own websites.

• Public information and facilitation counters to be set up in the government offices so that public-domain information is available without any delay and also for e-mail access into grievance and suggestion databases for citizens.

• IT literacy in schools and colleges, IT modules in degree colleges, Internet in educational institutes, distance education through IT, setting up training centres for unemployed, training of teachers, setting up community information centres are some of the initiatives on the IT education side.

• The state government shall endeavour to provide continuous and uninterrupted power supply for IT industries.

• The state government to permit setting up of IT software units/ IT parks in residential areas and change of existing industry to IT units/ IT parks.

Manipur April 2010



42

Advantage Manipur






MANIPUR April 2010

Contents

43

Khadi and Village Industry

• The Khadi and Village Industry not only provides employment to people in rural and semi urban areas at low investment per job, it also makes use of local skill resources, and provides part time as well as full time work to rural artisans, women and minorities.

• The state board for development of khadi and village industry was established in 1996.

• The sectors produces goods worth about US$ 10 million every year. The sector employed about 70,000 people in 2009.

Handloom• Handloom is the largest cottage industry in the state. Manipur ranks among the top five states in terms of

the number of looms in the country. The state had over 270,000 looms and 300,000 weavers in 2009.

• Most of the silk weavers, famous for their skill and intricate designing, are from Wangkhei, BamonKampu, Kongba, Khongman andUtlou.

• To provide welfare measures and better working conditions to handloom weavers, schemes such as group insurance, health package, work-shed cum-housing scheme, project package scheme, integrated handloom village development project and the Deen Dayal Hathkargha ProtsahanYojana are being implemented in the handloom sector.

Manipur April 2010BUSINESS OPPORTUNITIES

44

Handicrafts

• Handicrafts is another important industry in the state. It has its own unique identity amongst the various crafts of the country.

• Cloth embroidery, cane and bamboo, ivory, stone and wood carving, metal crafts, deer horn decorative articles, supari working sticks, dolls and toys are some of the well known Manipuri handicrafts.

• Since cane and bamboo are abundantly available, basketry is a popular occupation of the people of Manipur. People of the Maring tribe, inhabiting the Chandel district are the main manufacturers of these types of basket. Other tribes and the Meeteis also contribute to the state’s basket trade.

• Pottery flourishes in the Andro, Sekmai, Chairen, Thongjao, Nungbi and parts of Senapati districts.


45

Sericulture

• Manipur has four varieties of silk: mulberry, eri, muga and oak-tussar.

• The Manipur Sericulture project was initiated with the assistance of the Government of Japan through Government of India, particularly, to provide employment to the women folk. Around 94.71 per cent plantation was achieved under this project.

• In 2007-08, a Catalytic Development Programme was implemented with financial assistance of US$ 0.24 million from the Central Silk Board and Ministry of Textiles.

• There were 168 primary sericulture societies as of 2007-08.


46

Food processing

• The food processing industry is a major thrust sector of Manipur. The state’s agro climatic conditions are most suited for such industries.

• MAGFRUIT, RATNA, SANA, MANIFRU, LIKLA, HEIRANG, CHANDANI and WAIFRUIT are some of the local popular brand names in this industry.

• Fresh packed pineapple and passion fruit, pulp, juice, toffee and concentrate, lemon and orange juice, ginger oil, ginger lime, canned mushrooms and fresh in brine or canned dry bamboo shoots, are some of the well known products of Manipur.


47

Bamboo processing

• The State Government has undertaken a scheme for setting up bamboo processing units in the state by using the US$ 0.1 million fund from the North Eastern Council (NEC) in 2005-06.

• Three common facility centres for bamboo processing have been established at Tamenglong, Churachandpur and Imphal.

• Initiatives have been taken to set up a bamboo technology park. The main objective of the park is to set up entrepreneurial cluster based bamboo processing units, on public private partnership basis under the special purpose vehicle (SPV) mode, in association with the National Mission on Bamboo Application (NMBA), Government of India.


48

Tourism

• Manipur has a pleasant climate, exotic greenery and varied flora, besides a the rich tribal culture. There are many places in Manipur that are tourist attractions.

• According to the Directorate of Tourism, Manipur, over one million tourists visited Manipur in 2007-08.

• The key tourist destinations in the state include the following:

• The Keibul Lamjao National Park on the bank of the Loktak Lake, the only habitat of Brow Antlered Deer which is locally known as ‘Sangai’.

• The Indian National Army Memorial at Moirang where INA hoisted tri-colour flag for the first time on Indian soil.

• The Siroy National Park at Ukhrul.

• Loktak lake, the biggest fresh water lake in the Northeast.


49

Major projects being implemented

Name of the project Promoter Cost (US$ million)

Industry Project ownership

Tipaimukh hydro-power project

North Eastern Electric Power Corporation Limited

1,304.3 Hydro-power Central Government

Thoubal irrigation project Government of Manipur 55.2 Irrigation State Government

Sub-transmission and distribution (Manipur) project

Manipur State Electricity Department

30.8 Power distribution

State Government

Office building (Chingmeirong) project

Government of Manipur 30.7 Business complexes

State Government

Sewage infrastructure (Imphal) project

Government of Manipur 29.3 Water, sewage and effluent treatment

State Government

Capital complex (Manipur) project

Public Works Department, Manipur

19.1 Business complexes

State Government

Khuga irrigation project Government of Manipur 15.9 Irrigation State Government

Singda irrigation project Government of Manipur 9.2 Irrigation State Government

Hospital (Thoubal) project Government of Manipur 4.8 Hospitals State Government

Source: projectstoday.com


50

Key projects being planned

Name of the project Promoter Cost (US$ million)

Industry Project ownership

Jiribam-Imphal BG railway Line

Northeast Frontier Railway

541.8 Railways Central Government

Loktak downstream Hydro-power project

NHPC Limited 136.4 Hydro-power Central Government

Campus (Imphal) project Regional Institute of Medical Sciences

15.2 Community services

Central Government

Jiri irrigation project Government of Manipur 10.5 Irrigation Central Government

Road up-gradation (Barak-Jiribam) project

Border Roads Organisation

9.8 Roadways Central Government

Road up-gradation (Maram-Peren) project

Border Roads Organisation

9.6 Roadways Central Government

College campus (Iroishmba) project

Central Agricultural University

6.3 Community services

Central Government

Source: projectstoday.com


51

Advantage Manipur






MANIPUR April 2010

Contents

52

Key approvals required … (1/2)

• In order to facilitate investment the state government has set-up a single-window facilitation with escort mechanism, which provides coordination with departments for all services and clearances essential that are required for expeditious establishment of industrial units.

• A special cell in the Directorate of Commerce and Industries has been set up to provide the escort mechanism for investments.

• All new units, except those in the IT sectors, have to necessarily obtain clearance from Manipur Pollution Control Board (MPCB).

• Prior clearance of the Department of Environment and Forest, Government of Manipur, is obtained before setting up new units in areas other than industrial estate, growth centres, EPIP, IT parks, IIDC and declared Industrial areas.

Manipur April 2010DOING BUSINESS IN MANIPUR

53

List of approvals and clearances required Department

Incorporation of company Registrar of companies

Registration, IEM, industrial licensesDirector of Commerce and Industries, Manipur

Permission for land use

Allotment of land Manipur Industrial Development Corporation Limited (MANIDCO)

Site environmental approvalManipur Pollution Control Board (MPCB)/Department of Environment and Forest, Government of ManipurNo objection certificate and consent under Water and Pollution

Control Act

Registration under States Sales Tax Act and Central and State Excise Act Excise department of Manipur

Commercial taxes

Sanction of powerElectricity department, Manipur/The Joint Electricity Regulatory Commission for the States of Manipur & Mizoram (JERC)

Power feasibility

Power connection

Approval for construction activity and building plan Public Works Department, Manipur

Water and sewerage clearanceManipur Public Health Engineering Department (PHED)

Water connection

Manipur April 2010

Key approvals required … (2/2)

DOING BUSINESS IN MANIPUR

54

Cost of doing business in Manipur

Cost parameter Cost estimate Source

Cost of land (per acre) US$ 50,000 (Imphal) NeDFI Database

Hotel costs US$ 10 to US$ 60 per room per night Industry sources

Cost of office space(2,000 sq ft) US$ 90 to US$ 150 per month Property dealers

Cost of residential space(2,000 sq ft) US$ 60 to US$ 100 per month Property dealers

Labour cost in Manipur

Industry Category of workers Minimum wages, US$/per day

Agriculture Un-skilled 1.8

Skilled 1.9

Road construction and building

Un-skilled 1.8

Skilled 1.9

Transport Un-skilled 1.8

Skilled 1.9

Industries Un-skilled 1.8

Skilled 1.9

Source: Labour Department, Manipur


55

Manipur Industrial Development Corporation Limited (MANIDCO)

Formerly known as The Manipur Small Industries Corporation Limited(MSIC), MANDICO’s objective is to aid, advice, assist finance, protect and promote the interest of small and medium industries in the state.

Manipur Handloom & Handicrafts Development Corporation Limited (MHHDCL)

MHHDCL was set up in 1976 to help production and direct marketing of handloom and handicraft products.

Manipur Food Industries Corporation Limited (MFIC)

MFIC was incorporated in 1997. The corporation provides assistance and support services in the field of technical, financial, marketing, etc., to food processing units.

Key investment promotion offices


56

Contact list

Manipur Industrial Development Corporation Limited

Industrial Estate Takyelpat, Imphal - 795001Post Box No 46Phone: 91-385-2221 967/2223 624 Website: http://mastec.nic.in/manidco.htm

Minister for Development of North Eastern Region

258, 1st Floor, Vigyan Bhavan AnnexeNew Delhi-110011Phone: 91-11-2302 2401, 2302 2400Fax: 91-11-2306 2754Website: http://mdoner.gov.in


57

Annexure

Year INR equivalent of one US$

2000 46.602001 48.302002 48.042003 45.602004 43.702005 45.202006 45.002007 42.002008 40.202009 46.00

Exchange rate

Average rates for the year


58

India Brand Equity Foundation (“IBEF”) engagedICRA Management Consulting Services Limited (IMaCS) to prepare this presentation and the same has been prepared by IMaCS in consultation with IBEF.

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of this

presentation to ensure that the information is accurateto the best of IMaCS’s and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.

IMaCS and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.

Neither IMaCS nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.

DISCLAIMER

MANIPUR April 2010

manipur - ibef · pdf file• in the state’s local language, manipur ... rare...

Documents