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Industries in Northeast

In response to this policy many industrial units have come up in the North Eastern region. According to the National Institute of Public Finance and Policy, New Delhi, the lack of connectivity has virtually segregated and isolated the region not only from the rest of the country and world but also within itself. Poor density of road and railways transportation within the region has not only rendered mobility difficult but also has hindered the development of markets. The region has tremendous potential generating hydro-electric power, but the actual generation is less than 8% of the potential. The region is poorly linked by air transportation and sea routes have been blocked. Further, it is to be appreciated that there are very little large scale manufacturing units in the region. The units that exist are based on locally available resources and an optimal plant sizes that are not very large. The large scale industries functioning in the region are mainly in the areas of mining and quarrying, food processing, spinning and weaving, pulp and paper, wine and malt, bidis, cigars and cigarettes, printing, bleaching and dying, wool spinning, wooden products, footwear, fertilizers and chemicals, insulated wires and cables and drugs and medicines. The impact of the new industrial policy is that many large scale industries particularly cement industry have  come up in Assam and Meghalaya. This has created a good impact in the region as it is no longer dependent in the main land for supply of cement.

The North Eastern Region is also a home with huge potential to develop power industries in the region, an area where the region can contribute to the country in solving its energy crisis. Similarly tourism sector has a potential to offer huge employment and economic development in North Eastern Region because of its scenic beauty found rarely in other parts of the country. It is off course to be appreciated that the present tourism ministry at Delhi has earmarked 57% of its total budget for tourism department for North Eastern Region. Similarly bamboo is an integral part of the socio economic and cultural traditions of the region and provides an opportunity for growth of economy through bamboo. Around 50% of country’s bamboo forests cover almost half of the geographical area of the state. Assam has the most bamboo stock, followed by Manipur, Mizoram and Arunachal Pradesh.

Some of the leading industrial organizations, processing and manufacturing plants in Nagaland are:

•    Nagaland Plywood Factory: Located in the district of Mon.
•    Nagaland Pulp and Paper Company Ltd: Located in the Mokokchung district.
•    Pineapple Fibre Plant: Situated in the Baghty village of Wokha
•    Citronella Oil Industries: Situated in the Mongsuyuyumi village of Mokokchung district
    Nagaland Sugar Mill Company Ltd: Situated in Dimapur
•    Fruit and Vegetable Processing Plant     
•    Mechanized Brick Plant: Situated in the Tolumi village of

However recently the Narendra Modi government had de-notified the above industrial policy which has given a negative signal to the industrialists of the region. However after protest from the industrial group, the Government of India has notified that the policy has neither been cancelled nor withdrawn. Only the fresh registration of new industrial unit has been stopped. This has been done because of high outstanding bills of subsidies which have remained unpaid. It has also been alleged that there has been large scale corruption in the transport subsidy and as such Government of India was force to review the policy. This reporter spoke to Mr. R. S. Joshi, President, North East Federation of Chamber of Commerce about the alleged transport subsidies. To this he said that initially there were misappropriation and misuse of subsidy but at present it is impossible for anybody to take additional advantage from the subsidy that is being offered. As the system is full proof, he categorically said if there is no subsidies no investor will invest in the region as the region has special problems compared to other parts of the country. It may be mentioned here that North Eastern region also lacks extensively in the education sector which is not termed as industry. If the new industrial policy includes education as industries and all incentives which are being given to the industry is also given to the education sector than it will play an important role in bringing development and integration of the region. An internet report has estimated that at present there are 10 lakh students of North Eastern region who are studying different types of courses at Delhi. There is a need to consider this aspect as government has done with hotels construction which is enjoying full subsidies like any other industries.

This act will help in retaining the resources in the region besides creating employment. There is a need to re-look and re-frame the North East Industrial Policy.

Below is the status of Large and Medium Industries in Meghalaya
Sl. No.    Industries    Nos.


EP Desk