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Industrial Development & Economic Growth in Arunachal Pradesh

August, 2014

The resources, policy incentives and climate in the state support investments in mining and mineral products (including cement), tissue culture and floriculture, plantation crops (tea, rubber, etc.) and agro-based industries.

North Eastern Development Finance Corporation Limited is engaged in catalysing the industrial growth of the Northeastern region (including Arunachal Pradesh) by providing counseling, timely advice and assistance for building quality enterprises.

The central government also approved the North East Industrial and Investment Promotion Policy (NEIIPP), 2007. The policy provides several incentives: incentive on business expansion, 100 per cent excise duty and income tax exemption, capital investment subsidy, interest subsidy and insurance premium reimbursement.

The Department of Industries has set up District Industries Centres (DICs) and Sub-District Industries Centres (Sub-DICs) for the industrial development of small scale, tiny and village industries.

Major initiatives taken by the government to promote Arunachal Pradesh as an investment destination are:

  • The government has invited domestic power companies in the region to develop hydropower plants.
  • The Ministry of Environment and Forests (MoEF) granted pre-construction scoping clearances to over 50 projects under the EIA notification 2006. Final environmental clearance has been awarded to 13 projects.
  • The State Industrial Policy, 2008, of Arunachal Pradesh lists mineral-based industries (such as ferro-alloys, cement plants, etc.) as thrust sectors. The state's mining activities are managed by the Arunachal Pradesh Mineral Development and Trading Corporation Limited (APMDTCL).
  • The State Industrial Policy, 2008, provides incentives for developing tourism infrastructure, with a special focus on public-private partnerships in tour operations, hotels and resorts. The central government's Look East Policy is initiating tourism as a means to increase trade with other South East Asian countries.

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