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BEST INVESTMENT OPPORTUNITIES IN MANIPUR

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INTRODUCTION

Manipur is a state in north-eastern India, with the city of Imphal as its capital. Manipur is also known as India’s gateway. Manipur has had a long record of insurgency and inter-ethnic violence. The first armed opposition group in Manipur, the United National Liberation Front (UNLF), was founded in 1964, which declared that it wanted to gain independence from India and form Manipur as a new country. Manipur has been at the crossroads of Asian economic and cultural exchange for more than 2,500 years. It has long connected the Indian subcontinent to Southeast Asia, enabling migration of people, cultures and religions. Manipur has primarily an agrarian economy, with significant hydroelectric power generation potential. It is connected to other areas by daily flights through Imphal airport, the second largest airport in north-eastern India. It is one of the border States in the North-Eastern part of India, bounded by Nagaland in the north, Assam on the west and Mizoram on the south and along the east it shares a 352 Km with Myanmar. Today’s Manipur consists of nine districts. The state shares international border with Myanmar making it an important entre for trade and business.

 

Geography and Climate: Manipur is one of the seven states of Northeast India. It is bound by the states of Nagaland in the north, Mizoram in the south, Assam in the west, and by the country Burma in the east as well as in the south. The state lies at a latitude of 23°83’N – 25°68’N and a longitude of 93°03’E – 94°78’E. The capital lies in an oval-shaped valley of approximately 700 square miles (2,000 km2) surrounded by blue mountains, and is at an elevation of 790 metres above the sea level. The total area covered by the state is 22,347 km². Manipur, typically, observes moderate climate throughout the year. This north-eastern corner of India enjoys a generally amiable climate, though the winters can be a little chilly. The maximum temperature in the summer months is 32 degree C. In winter the temperature often falls below zero, bringing frost. It has a distinct location advantages as the state offers a gateway to South East Asia. Moreh plays a key role in the development of economy of the state.Moreh has a land custom station. The proposed integrated check post (ICP) will facilitate speedy movement of export-import consignments and redress the inconveniences suffered by general public in the emerging scenario of India’s Look East Policy.

 

Agricultural Development: Agriculture plays an important role in the development of Manipur's economy. It is the dominant occupation of the people of Manipur. It is not only the main source of livelihood of the overwhelming majority, but also a tradition and a way of life that moulds the socio-economic status of the people. More than half (52.19 percent) of the total working population of the state are directly dependent on agriculture for their livelihood. Of the total working population of 11, 59,053 persons 2, 66,486 persons or 23 percent in the valley and 3, 02,466 persons or 26.1 percent in the hills are agricultural workers (census, 2011). A large section of the population in the state pursued agriculture as secondary occupation even though agriculture is not their primary occupation. This shows that agriculture has been the most important occupation of the people. Manipur holds significant cultivation potential for various horticultural crops due to varied agro-climatic conditions. Horticulture is the art of raising fruits, vegetables and ornamental plants on a commercial scale. The state produces sizeable quantity of paddy, wheat, maize, pulses, oilseeds such as mustard, groundnut, soybeans, sunflower, ginger, turmeric and fruits like pineapple, lime/lemon, banana, orange, papaya, plum and vegetables like, cauliflower, cabbage, tomato, peas, carrot, pumpkin.

 

 

Labour and Employment: North East region has one of the most talented and innovative pool of human resources in the whole of South Asia region. The employment service, Manipur came into existence in 1957 and has been working with its Directorate of employment as controlling body tending upon administration, establishment and financial supervision under which there are 9 District Employment Exchanges, 5 Town Employment Exchanges and 1(One) Employment information and Assistance Bureau.The State Directorate functions as a manpower organization and planning agency for the State. Further it provides leadership, guidance and expertise in technical fields. The Directorate of Employment is the main executing arm of the department in the state. The Employment Service, Manipur play a significant role in assisting the youth in finding employment in paid jobs.

 

Infrastructure and Economy: Manipur has impressive physical, social and commercial infrastructure compared to other states in North east India making the state a preferred destination for investors. Manipur is faced with the challenge of providing infrastructural facilities conducive to social and economic development.Manipur has a domestic airport in Imphal - the Tulihal airport, which is located about 8 km from the heart of the city. Imphal airport is the second-largest airport in the north-eastern region with postal air cargo services for six days a week. The state capital Imphal, the only airport of Manipur, connects directly with Delhi, Kolkata, Guwahati, and Agartala. It has been upgraded as an International airport, and as India's second largest airport in the northeast it serves as a key logistical centre for north-eastern states. The road network of Manipur, with a length of 7,170 km (4,460 mi) connects all the important towns and distant villages.

 

 Single Window Clearance mechanism: In order to facilitate investment and to make Manipur an attractive destination for investors the State Government has set‐up a Single Window   facilitation/   escort  Mechanism  which   seeks  to  provide  and/ or Co‐ordinate  all services  and   clearance   essential  for  expeditious  establishment of industrial unit. With an aim to promote investments, the department of industry is offering the single window facility through a ‘Green Channel Committee’ of  officials of all other concerned Departments with a view to facilitate  and  expedite  the various  clearance and Government approval required  by entrepreneurs as  also  to  promote investments in the  state.  The state-level single window agency would consider and approve all projects of investment up to $9.2 million in each case including industry, tourism, IT, bio-technology, food processing and infrastructure.

 

 

    MAJOR SECTORS IN MANIPUR

Handloom Industry: Handloom industry is the largest cottage industry in the State.Hand woven textiles have always been a rich source of one’s tradition. In the Northeast region of India, each tribe or community has its own specific designs and motifs. In Manipur the Handloom Industry has been playing a pivotal role in the economic since times immemorial. The traditional skill of handloom weaving is not only a matter of status symbol for the women-folk in the State, but also is an indispensable aspect of their socio-economic life. In fact, it is one industries, which gives and generate a maximum employment to the women-folk both young and older ones. In Manipur the women community take part in handloom industry and is the only source of income in their families for their life. The State Government has made full efforts for overall development of handloom industry in the State. Manipur Handloom and Handicraft Development Corporation and Manipur Development Society are the two agencies of the State Government taking concerted efforts for production and marketing of handloom products.

 

Handicrafts Industry: The handicrafts sector is important for the Indian economy as it is one of the largest employment generators and accounts for a significant share in the country’s exports. Manipur, one of the eight states of the northeast India known as “eight-sister state”, literally means the ‘jewelled land’. This is a city gifted with nature and its magnificence. The crafts of Manipur showcase the creativity of its people. Manipur produces a wide range of handicrafts items. Handicrafts of Manipur have a unique place amongst the various crafts of the country. Various kouna products, cane and bamboo items, artistic weaving, woodcarving, etc. have a distinct place of its own. 

In order to promote the Handicrafts artisans of the State, Commerce & Industries Department has been implementing the following       promotional schemes.

 

   State Award to outstanding crafts-persons,

   Modernization of Handicrafts,

   Development of Kouna products,

   Mini Crafts Museum,

   Assistance to Individual artisans (equipment subsidy to ex-trainees)

   Survey and Census of Handicrafts artisans.

 

Current trends of handicrafts product is not only restricted to aesthetic or artistic value but incorporation of design and new ideas make these products into daily utility items broadening the marketability as well as scope of handicrafts products.

 Food Processing Industry:  The Directorate of Commerce & Industries is functioning as Nodal Agency of Food Processing Industries in Manipur since 1992. The food processing industry is a major thrust area in the state of Manipur as it plays a significant role in diversification and commercialization of agriculture, horticulture, fisheries, poultry, animal husbandry and forest resources. The state government supports the development of food processing sector by taking up projects under central sector schemes. The government of Manipur is working towards establishing a food park at Nilakuthi. A food park with a project cost of Rs. 3172.40 lakh to provide common facilities like cold storage, warehouse and quality control lab etc. Under the Scheme for Cold Chain, Value Addition and Preservation Infrastructure, Ministry of Food Processing Industries (MoFPI) has approved one cold chain project in the state.

 

Bamboo Industry: Bamboo is one of the most abundant and environmental-friendly and sustainable resources available in NE Region, which is not being used to its full potential. Bamboos, which are widespread in Manipur, offer numerous opportunities in this regard, and there is much potential for expanding it. In view of commercial cultivation and economic utilisation of bamboo as a substitute for the fast depleting timber resources, a comprehensive programme of bamboo for sectional upgradation, enhancement of employment opportunities for artisans, promotion of value-addition through better and well designed product development, optimum propagation and conservation and diversifying production and processing activities through organized community action has been taken up. Efforts have been made by the Department of Commerce & Industries to upgrade the skills of the bamboo artisans by organizing training programmes inside and outside the State. In many parts of India, bamboo shoots have formed a part of traditional cuisine – fresh, dried, shredded or pickled. The composition testing of shoots, shelf life analysis, market study and standardization of processing methods has been carried out by the Mission.

The products range among others includes:

1. Bamboo Mat Ply

2. Bamboo Ply Board

3. Medium Density Fiber (MDF) Board

4. Particle Board

5. Chip Board

6. Bamboo Floor Tiles/Board

7. Bamboo Furniture

 

 Information Technology Growth: In simple words, Information Technology (IT) can refer to 'anything that we use in modern daily-life to communicate with each other using technology globally'. In Manipur, Department of IT and Department of Science and Technology (Govt of Manipur) are entrusted with infrastructure building responsibilities. The government of Manipur is promoting the information technology sector by setting up IT Park, IT- enabled services centres and information kiosks. In addition to software development businesses, IT-Enabled Services (ITES) such as BPO (Business Process Outsourcing), KPO (Knowledge Process Outsourcing) are feasible for setup in Manipur, if provided there is uninterrupted broadband service and power supply. Rapid IT growth in Manipur can be achieved by focusing on supporting local application-based software development IT companies that serve businesses in other industries (including e-governance projects of Manipur govt). Manipur State is striving to score higher on being business-friendly in terms of the available IT infrastructure. Availability of ever growing and vibrant skilled manpower suitable for the IT Industry, a proactive Government which has defined IT as a Priority Sector and opportunities for taking up projects in neighbouring Myanmar, given the good relationship that India has with the Myanmar Government are some of the unique advantages with which, Manipur is blessed with.

 

Power Industry: Manipur gets its share of power from the Central Sector Power plants located in the North Eastern Region. Manipur has hydro power potential of about 2000 MW which is sufficient not only to meet the local requirement for domestic and industrial uses but leave surplus for marketing outside. Thus, the State Government has chosen this sector as a thrust area for development. The State Government is making preparation to frame a policy of its own to facilitate private participation and investment in the sector. The State is committed to provide an attractive and investment friendly atmosphere. Manipur is richly endowed with considerable hydropower potential. The Government has given top priority in generation sector to develop hydro power potential as one of the major industries. Substantial numbers of skilled unemployed manpower is also available in the State. Evacuation of the power produced in the State can be made through the existing wide and strong network of the North Eastern Grid as well as through the upcoming transmission networks.

 

Tourism Potential: Manipur is a captivating state lying in the north-eastern state. Ithas a pleasant climate and a rich culture heritage along with nature beauty making it a traveller’s paradise. The culture features martial arts, dance, theatre and sculpture. The state of Manipur is protected by hills and mountains. The bracing climate lures travellers from all over the world to this part of India. The places of tourist attraction in Manipur are the religious centres, the beautiful lakes, national parks, monuments and scenic hill station. Temples in Manipur are remarkable pilgrimage sites which makes the trip to this state more captivating. Almost all the temples of Manipur are created on Brahmanical rules of Vastu Shastra and have the Mandapas. The Keibul Lamjao National Park is one of its major tourist attractions. Located near the capital city of Imphal, this is a must visit tourist spot of Manipur. The sight of rare animals and birds is a delight for the nature lovers. Spread over forty square kilometers of wetland, the Keibul Lamjao National Park is debatably the world's only floating sanctuary. The Shahid minar in Manipur is a must see tourist location. The monument is an emblem of the bravery of the valiant soldiers who laid down their lives for their nation. The war cemetery in Manipur is also a popular destination. This place is toured by large numbers of visitors every year. Health Care Tourism or Medical Tourism is one of the potential areas for promoting Health care services with tourism avenues. Presently cross-border travel for health reasons is a growing market and throws up huge opportunities for investment. 

 

Trade with Myanmar:  The Indo-Myanmar Border Trade was inaugurated on 12/04/95 by the then Union Minister of State for Commerce, as a follow-up measure of the Trade Agreement signed between the two countries on 21st January, 1994, at New Delhi. The main role of the Department of Commerce and Industries is to act as a liaison agent for promotion of border trade between India and Myanmar. The opening of the Border Trade along the Tamu (Myanmar)-Moreh (Manipur) sector is quite significant as this would act as an economic bridge between industrially developed India and the blooming economies of South East Asian countries. Manipur has the advantage of acting as India’s Gateway to the East through Moreh town, which is the only feasible land route for trade between India and Myanmar and other South East Asian Countries. It shares 398 km long international border with Myanmar. A Land Custom Station (LCS) already exists at Moreh for the existing traffic volume of trade.

 

 

SOME PROJECTS FOR INVESTMENT


Agro-Food Processing Industries:

 

Tetra Pack Packaging Unit at Food Park

 

Agri-export Zone for Passion Fruit

 

   Fruits Juice Concentration Plant

 

Processing of Bamboo Shoot Plant

 

Production of Oleoresins and Spice Oil Plant

 

Integrated Mushroom Production & Processing Plant

 

 

Bamboo Shoots products:

Canned Bamboo shoots

 

Bamboo shoot candies

 

Bamboo shoot chutneys

 

Bamboo shoot sweet pickles

 

Fermented bamboo shoots

 

Bamboo Shoot Powder.

 

 

FEW UPCOMING PROJECTS IN MANIPUR

Ø  Cold-chain

Ø  Border town

Ø  Special Economic Zone (SEZ)

Ø  Bamboo Park

Ø  Export Promotion Industrial Park

Ø  Tetra-park unit for Export Promotion

Ø  Timber Park

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Annexure 29 :: Depreciation Charges – as per Books (Total)
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Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)
Annexure 33 :: Interest and Repayment - Term Loans
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