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Industrial Development & Economic Growth in Meghalaya

May, 2018

Meghalaya is located in the Northeast of India. The state shares its border on the north and east with Assam and on the south and west with Bangladesh.

Meghalaya, with an average annual rainfall of 1,150 cm, receives the highest amount of rainfall in the country. The diverse range of soil types, including red-loamy and laterite, support various agricultural crops like rice, maize, pulses, oilseeds, cotton, jute and mesta.

Passenger traffic at Barapani airport, Meghalaya reached 12,957 in 2017-18. Passenger traffic during April 2018 stood at 1,479.

Meghalaya has an installed capacity of 396.46 MW for hydroelectric power as of May 2018. The potential for hydropower (above 25 MW) in the state is estimated to be 2,298 MW.

The natural resources, policy incentives and infrastructure in the state favour investments in the tourism, hydroelectric power, manufacturing and mining sectors. Minerals and mining, agriculture and horticulture and tourism have been identified as the thrust sectors for industrial development.

Some of the major initiatives taken by the government to promote Meghalaya as an investment destination are:

  • Under Budget 2018-19, the state government proposed an allocation of Rs 204.12 crore (US$ 31.53 million) for urban development.
  • As per State Budget 2018-19, the 2×20 MW New Umtru Hydro Electric Project (NUHEP) was commissioned in July 2017. There are two hydro projects under implementation - Lakroh SHP (1.5MW) and Ganol HEP (3x7.5 MW).
  • Government of India has earmarked Rs 180 crore (US$ 27.93 million) for extension of runway at Barapani airport.
  • Under Budget 2018-19, the government allocated a higher amount of Rs 969.64 crore (US$ 149.77 million) for the education sector.
  • The state government is inviting investments in this area through the PPP mode. Independent power producers (IPPs) are also being invited to develop hydro projects in Meghalaya; this provides immense potential for investment.

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