INDIAN STATE : NAGALAND

General Information

Nagaland is blessed with unimaginable beauty, picturesque landscapes and deep valleys. It is located amidst the gentle green hills of the Himalayas.

Nagaland is bounded by Assam in the west, Myanmar (Burma) on the east, Arunachal Pradesh in the north and Manipur in the south. The state comprises of eight districts with Kohima as the state capital and Dimapur is the commercial center of the state and is well connected by both air and rail. Nagaland shares a long international border with Myanmar, which is a vantage point to develop trade and business with other South East Asian countries.

The state has rich and varied cultural heritage. The natural skill of the Nagas lies in basketry, pottery, cultivation, spinning, weaving, carving and dyeing metal work.

Fact File

Geographical Area	0.17 (lakh sq. km)
Capital	Kohima
Population (2001 Census)	In lakhs 19.9
Percentage of State Population to All India Population	0.19
Literacy Percentage Male Literacy Female Literacy	66.59% 71.16% 61.16%
Principal Language	Nagamese, English, Hindi and Local Dialects

Source: CSO Estimates.
Nagaland Industrial Development Corp Ltd.
Director of Industries & Commerce, Govt of Nagaland.

Advantage Nagaland

• The state of Nagaland is highly endowed with fertile soil, sublime climate making it ideal for agri based investments.
  
• Presence of medicinal herbs and plants in abundance in the hilly regions of the state
  
• Potential region for the promotion of horticulture.
  
• Tremendous potential in dairy and allied products, processing of hides and skins for leather industries, piggery, poultry and sericulture.
  
• Floriculture offers tremendous potential for exports
  
• Rich reserves of minerals such as petroleum, natural gas, coal, nickel, cobalt, chromium, etc.
  
• Tourism offers limitless potential with Nagaland aptly being described as the "Land of Festivals".
  
• Availability of skilled human resource.
  
• Amicable atmosphere conducive for progressive for Industrial development.
  

Economic Infrastructure

Transportation

The major mode of transportation in Nagaland is by road. Pliable road network and State Highways link with all districts as well as far-flung areas. Nagaland is also connected to the rest of the country by National Highways. Development of roads specifically in the notified industrial zones is being accorded priority.

Dimapur, the commercial hub is also connected both by Rail as well as by Air. Efforts are also being made to extend the railway network to other interior parts of the state.

Telecommunication

The telecommunication network in the state is growing at a rapid rate. With the up-gradation of the Dimapur Telecom District to that of a Telecom Circle headed by a Chief General Manager, the telecommunication services in the state is expected to improve further. The advent of Internet service has also linked this remote state with the global information highway.

Media

International & National editions of Newspapers are available regularly. The local print media in both the English as well as the local dialect segment has also grown substantially. Further, easy access to almost all satellite broadcasts of all major international and national networks is available.

Hospitality

Effort by both the private as well as state owned sectors in setting up decent hospitality facilities of high standard has now made it convenient for business travelers as well as tourists to visit the state without facing any accommodation problems.

Postal services

The state has a wide postal network with post offices spread throughout the state offering a wide range of value added services like satellite based money order services, courier & speed post services besides the other normal services.

Power

The State is still dependent on the neighboring States of Meghalaya and Assam for its power requirement. With the commissioning of the 75 MW Hydel Project at Doyang, 24MW Hydel Project at Likhimro and another 24KW Thermal Project the power availability in the state is expected to improve and supply of adequate power to industry available. Preliminary surveys have revealed the potential of generating 2000 MW in the Tizu-Zungki basin.

Social Infrastructure

Health

District Hospitals

All district Hospitals are equipped with both an outpatient and indoor treatment and care facility. The hospitals at the district headquarters have a 50-bedded capacity, except Naga Hospital, Kohima and Mokokchung Civil Hospital, which have 250-bedded and 100-bedded capacity respectively.

Medicines are made available, free of cost for all minor ailments. However, for diseases needing longer or special treatment, some private expenditure has to be entailed. All other services/care are provided in the hospitals as best as possible.

Any complaint or grievance from any person may be given directly to the Medical Superintendent of District Hospital for immediate and appropriate redressal. If the Officer in-charge fails to attend to public grievances, the matter may be reported to the Director of Medical Services for necessary action.

Community Health Centres (CHC)

Community Health Centres have a capacity of 30-beds, and are normally located at the sub-divisional level with more than one or two PHC's under them. Facilities and services provided through such centres include mother and child health care and services, immunization, other health programmes such as malaria, leprosy, blindness control, school health, family welfare programme, etc.

Medical officers in-charge and other Medical Officers, Public Health Nurses, Staff Nurses and Female Health Workers who are trained in rural health care man these Centres.

Any grievance from the public may be told to the Medical Officer in-charge of the CHC. In case of any failure on the part of the Medical Officers to discharge their duties, the matter may be reported to the Civil Surgeon of the District for immediate redressal. Further complaints can be sent to the Directorate of Health Services for necessary action.

Primary Health Centre (PHC)

The Primary Health Centres have a capacity of 6-12 beds in Nagaland. The services provided through these centres are channeled through sub-centres to the remotest rural areas and villages. Direct services are also provided through these centres. They provide medicines/treatment for minor ailments, emergency treatment and care, and basic primary health care services to the grass-root level population.

The medical officers of PHC's are on duty for 24 hours. They stay in the health centres for a limited period of time, and visit villages as outreach activities, attending patients on the spot, conducting deliveries in the villages, and providing health education to the public. Any complaint arising from any corner may be submitted to the Medical Officer in the Primary Health Centre for immediate attention. However, if there are any lapses on the part of the Medical Officer, the public can report to the higher authority viz. Director of Health Services, and to the Government for appropriate action in time.

Education

Central University	1
Colleges	40
Higher Secondary Schools	12
High Schools	121
Middle Schools	255
Primary Schools	1311
Polytechnics	2
ITI	5

Major industries

Tourism

The picturesque landscape of the hilly state of Nagaland and its manifold cultures and customs and the salubrious climate offer vast potential for development of tourism Industry in the state.

Each of the 16 major tribes has their own distinctive colorful costumes, festivals, dances and music. Nagaland is aptly called "land of festivals". The rich art and culture of the people is a major tourist attraction.

The Government of India's decision to release the RAP will open new opportunities for development of tourism industry.

Opportunities exist in eco-tourism, adventure tourism, anthropological tourism and ethnic culture tourism, setting up of tourist resorts, private air taxi service, tour operation, augmentation of present tourist facilities, etc. Existing tourist spots are:

• World War II Cemetery at Kohima
  
• Tourist village at Touphema
  
• Shilloi lake in Phek district
  
• Intangki Wildlife Sanctuary in Peren Sub-division
  
• Dzüleke river
  
• Saramati Peak in Tuensang district
  
• Japfü Peak in Kohima district

Handloom and Handicrafts

Handicrafts and handloom sector in Nagaland have vast potential for growth due to the availability of abundant skills, raw materials and rich cultural traditions of its people. The natural skills of the Nagas lie in basketry, pottery, cultivation, spinning and weaving, carving, dyeing metal work etc. the Nagas are inherently skilled people and their handicrafts and handloom products are well known for the beauty and intricacies of work.

The art of woodcarving is as old as the history of the Nagas being associated with religious beliefs and practices. Cane and Bamboo grow abundantly in the forests and hills of the state. With the ready availability of raw materials, Nagas became expert basket makers. Basketry is carried out in almost every village of the state. Besides basketry, artisans of the state have also started making furniture and a wide variety of decorative items.

The main traditional crafts of the state are its rich handloom and handicraft, which have widespread appeal and demand in the domestic as well as offshore markets. Traditional techniques for weaving on loin-looms or use of primitive tools are labor intensive and time consuming. With the easy availability and applicability of modern techniques and tools, there is substantial scope for growth in this sector.

Agriculture and allied sector

Nagaland has basically an agrarian economy. Over 70% of the population is dependent on agriculture. The main crops are rice, millet, maize and pulses. Cash crops like sugarcane and potato are also becoming popular. Coffee, cardamom and tea are grown as plantation crops in Nagaland.

Rice is the dominant crop and also the staple diet of the people. Of the gross cropped area under food grains, rice accounts for about 70%. Oil seeds are also an important crop. It includes rapeseed, mustard etc. Coffee, cardamom and tea are grown as plantation crops in Nagaland. Principal crops are Arums, yams, millet, maize, potatoes and sugarcane. Vegetable crops are melon, cucumbers, spinach leaf, mustard, onion, chillies, carrots, tomatoes, brinjal etc.

The agriculture and allied sectors in Nagaland offer good inputs for development of a host of industries which could include: floriculture, horticulture, rubber plantation and allied industries, sericulture, tea cultivation and processing, bamboo shoot preservation, mushroom cultivation and processing, piggery, poultry, etc.

Horticulture

Horticulture is considered to be the most suitable farming enterprise in the state. With favorable agro-climatic and geophysical conditions, it produces a variety of organic sub-tropical & temperate fruits & vegetables. The total area available under horticultural crops is 6299 hectares and further area of around 4000 hectares is being brought under horticulture farming. Presently most of the produce is marketed in the local markets leading to huge volume of surplus and wastage.

The Government of India accords top priority to preservation and processing of fruits and vegetables and has introduced several schemes of assistance for Fruits & Vegetable processing.

The Department of Horticulture encourages new plantation of orchards with respect to the following crops:

• Mandarin
  
• Plum
  
• Sweet Orange
  
• Pear
  
• Pineapple
  
• Peach
  
• Banana
  
• Pomegranate
  
• Passion fruit
  
• Other nut fruits
  
• Litchi
  
• Coconut plantation

Animal husbandry and meat processing

Meat production is highly decentralized and there are no organized slaughterhouses. Meat (Beef, pork, poultry, mutton) consumption levels are high in Nagaland. However, local supplies are inadequate and there is inflow of animals from other states.

The State has high potential for diary and allied products as well as for processing of hides and skins for leather industry. Presently, scientific processing of Poultry and other meat products is lacking in the State.

There is huge scope for setting up modern abattoir and other meat processing units in the State for production and marketing of other value added diary products.

Sericulture

The agro-climatic condition is very favorable for the development of Sericulture in the State. There are 34 Sericulture farms, which provide technical and other supports like training of farmers, distribution of improved varieties of saplings/seedlings/supply of disease free layings (DFLs) etc. The Government has identified Eri Culture as the thrust area for development of sericulture in the State by bringing 2000 acres of land under Eri culture in the next three years. Through this the production of cocoons is targeted to yield 80 MT.

Floriculture

Floriculture can be taken up as a viable industry in the State. The wide variety of orchids available in the State can be exported to earn valuable foreign exchange. Many species of orchids are available in Nagaland, which has tremendous commercial potential. There is scope to grow exotic and new varieties of orchids through tissue. With the declaration of Guwahati as international Airport, cut flowers can also be exported from the State.

Forest based industries

Nagaland is rich in forest produces such as timber, cane and bamboo, flora and fauna. Almost all the vacant fallow lands are being rapidly covered with various high value timber varieties as the people have fully realized the commercial and ecological importance of forests. Investment potential exists for setting up of farms for production and promotion of Non-wood timber products with efficient marketing network.

Bamboo based industries

The North east region of India has the maximum concentration of bamboo in India owing to its climatic conditions. There is no dearth of bamboo. At present bamboo is put only to traditional use, handicrafts and papermaking. Now the Government of India has announced the bamboo mission for promoting bamboo based industries in the North East Region. Machine made bamboo sticks, blades, ply, etc are some products, which has substantial potential.

There are 400 exporters in India who together export Agarbatti (or incense sticks) worth Rs.800 crores. Of late multinational companies have introduced machine made agarbatti for the India market. As a result all other leading Indian manufacturers are using machine made round bamboo sticks for making agarbatti. It is estimated that the present requirement of round bamboo sticks is 2000 tonnes per month.

Medicinal and aromatic plants

With the favorable agro climatic conditions, Medicinal Herbs and Plants are abundantly available in the hilly regions of the State.

Medicinal Plants which could be considered for cultivation in Nagaland are Aconitum ferox, Aconitum heterophyllum, Aquilaria agallocha, Artemiszia annua, Dioscorea floribunda, Gloriosa superba, Hedychium spicatum, Lycopodium clavatum, Nardostachys jatamansi, Panax-pseudoginseng, Picrorhiza kurron, Piper longum, Piper nigrum, Podophyllum hexunddrum, Pogostemon cablin, Smilax china, Tagetes Minuta, Taxuz bacata and Valeriana wallichii. Scientific harnessing of this potential in the private sector can yield good results.
One of the most valuable medicinal plants commonly known as Ginseng, which has tremendous export potential is also found here.

Mineral based industries

Nagaland is rich in mineral resources. Explorations carried by the state Geology & Mining Department, Geological Survey of India, ONGC Ltd., Atomic Minerals Division and Central Ground Water Board have established the following mineral reserves which can be exploited for commercially purposes:

• Petroleum & Natural Gas
  
• High grade limestone
  
• Marble and dimensional/decorative stones
  
• Coal
  
• Nickel-Cobalt-Chromium bearing ore

The huge reserves of more than 1000 million tones of high chemical grade limestone in the eastern Nagaland is a major prospect for setting up of mineral resource based industries. There is urgent need for enhancing the pace of exploration especially for the untapped potential for hydrocarbon deposits and metallic deposits by infusing both the latest technology and required funds from domestic and foreign investors. Although a number of mineral reserves have been proved in the State, its exploration have been delayed due to various constraints. Nagaland offers investment potentialities in terms of exploration as well as exploitation including development of mineral based industries, which have high export potential. The possibilities include multi-disciplinary explorations for precious metals in the Ophiolites and Fossil fuels in the Sedimentary basins. Evolving Metallurgical know-how for utilization of multi-metal deposits of Nickle-Cobalt-Chromium-Iron. Exploration and production of Oil & Natural Gas including setting up of Refinery, Petro-chemical Industries, gas based power generation, etc. and setting up of medium to large industries based on very high grade limestone/marble deposits.

Policy Framework

Nagaland Industrial Policy

The mission of the policy is to facilitate rapid and sustained industrial development in the state through enhanced investment, an investor friendly environment, provision of infrastructure and institutional support, attractive incentive package and optimum utilization of existing resources in order to gainfully exploit emerging opportunities in the national and international markets and generate substantial income and employment avenues for the people of Nagaland.

Objectives of the policy

Create conditions for rapid industrial development and a climate conducive for investment.

• Create gainful employment opportunities for local population.
  
• Develop human resources and bring about improvement in the quality of life by promoting industrial ventures in sectors in which the State has a comparative advantage.
  
• Develop entrepreneurial and other technical skills of the available human resources by setting up training centers in relevant sectors as also by enlisting support from reputed national and regional training centers.
  
• Develop industrial infrastructure in selected areas by providing common facilities in a compact area for specialized categories of industrial units. Provide other critical infrastructure such as power, water, communications, etc.
  
• Promote export-oriented industries with a view to exploit the emerging market opportunities in the neighboring countries.
  
• Develop marketing facilities for industrial products.
  
• Encourage large and medium scale mother industries in the public, private, joint and assisted sectors to create an industrial base making use of the available resource base of the State in selective categories compatible with the local environment and ecology.
  
• Develop village and Small Scale Service and Business Enterprises (SSSBE) to provide self-employment to unemployed youth.
  
• Develop and promote Tourism Industry in the State.
  
• Revive and rehabilitate sick industrial units in the State.
  
• Develop food-processing industry by facilitating forward and backward linkages.
  
• Expedite formalization and development of cross border trade with Myanmar.
• Provide investor friendly environment by removing procedural bottlenecks and legal hurdles.
  
  Full text of the policy
  
  

Information Technology Policy

The Government of Nagaland endeavors to develop the state as a preferred IT destination by creating an enabling environment with appropriate policy intervention and people's participation. It also endeavors to use IT based technologies to uplift the quality of life of the people of the state particularly in the rural areas.

Nagaland has a sizeable English speaking populace, an equitable and salubrious climate and a vibrant social structure making it ideally suited for IT related industries. This greatly enhances the position of the State as an attractive location for development and growth of the information technology industry and related services.

Objectives of the policy

• Government to play the role of a facilitator; defining standards; providing infrastructure support; interfacing with related institutions within the country and outside and build regulatory mechanisms.
  
• Creation and systematic enhancement of IT infrastructure in the State through Public-Private partnerships.
  
• Development of human resource by widening the reach of IT education in terms of quality and spatial coverage with a view to improving the employability of youth.
  
• Encourage e-Commerce to overcome the handicap of remoteness.
  
• Encourage electronic governance for:
  • Bringing transparency in Government operations through Government-citizen interface (G2C)
    
  • Improving the efficiency and effectiveness of Government's service delivery systems.
    
  • Faster dissemination of information.
    
  • Better financial management.
• Encourage and popularize IT Education.
  
• Grant industry status to all software industries in the State, including IT enabled Services making them eligible for all concessions and incentives applicable under the State Industrial Policy. For the purpose of this clause, accredited/recognised IT training institutions shall be eligible to claim industry status.
  
• Ensure fast-track decision on IT related proposals by the concerned departments to be reviewed by the State level Committee headed by the Chief Secretary.
  
• The State IT Council headed by the Chief Minister shall carry out periodic review of the implementation of this policy.

Full text of the policy

Bamboo Policy

Bamboo is found extensively in Nagaland. It occurs as a predominant plant in parts of the districts of Dimapur, Peren, Mon and Mokokchung; it is found mixed with other forest species in all other districts. About 5% of the growing stock of bamboo of the country is in Nagaland which is about 4,48,000 hectares.

The dominant species in Nagaland are Kako (Dendrocalamus hamiltonii), Dolo (Teinostachyum dulloa) and Jati (Bambusa tulda). They occur all along the lower belts in the border with Assam. While Kakoo and Daloo clumps are characterised in moist localities along the nalas and streams, Jati occupies better-drained sites. In more accessible localities along the roads bamboos have been over cut while, in other areas they have been left untouched for may years. Hence there is huge potential for the bamboo industry in the state.

Objectives of the policy

• Keeping in view the ecological significance and economic potential of bamboos in the State, the Nagaland Bamboo Policy is intended to achieve the following objectives:
• Protection & conservation of rich bio-diversity associated with bamboo forests and bamboo growth areas in the State.
• Sustainable development and utilization of bamboo resources through scientific management.
• Promotion of bamboo plantations (by government, individuals and communities).
• Promotion of bamboo based industries for utilising the available resources.
• Revitalisation and promotion of local traditional bamboo craft & art with improved technology & design and value addition for export through industrialized mode of production.
• Promotion of bamboo as an essential wood substitute by increasing bamboo production and promotion of bamboo based enterprise in the state in order to reduce pressure on forests.
• Promotion of awareness and understanding of bamboo as "Green Gold" among farmers, traders, industry, and the people in the state with a view of utilizing its full potential and to galvanize the rural and industrial economy in the state.
• Effective exploitation of existing mature bamboos before the impeding gregarious flowering.

Full text of the policy

Investment Incentives

Investment Incentives Packages as according to the New Industrial Policy

• Power subsidy: Provision of power subsidy at 25 per cent and 30 per cent for consumption of over 2MW for a period of five years from the date of production or Rupees Two Lakh annually which ever is lower.
  
• Consumption of power line: Rupees Two lakh is the amount as subsidy provided as cost of drawal of 33/11 KV line for industrial unit.
  
• Subsidy for feasibility study Cost: Subsidy will be made available at 50 per cent of the cost of the detailed project report subject to a ceiling of Rs One Lakh, eligible to new units with an investment in plant and machinery above US$ 54,201.03 subject to the report being prepared by a Government approved industrial consultant.
  
• Human Resource subsidy: a subsidy of upto 25 percent on actual wage bill for all local tribal being employed by eligible units upto three years of employment with Rupees One Lakh annually. Stipends of US$ 10.8379 per month is provided to all trainees for special EDP programs conducted by Government approved/ recognized institutions providing training for a minimum period of three months.
  
• Special Incentives for 100 per cent Export Oriented Units (EOUs): Under this scheme an additional 5 per cent capital investment subsidy subject to a maximum ceiling of US$ 0.00650278 million (Rupees Three Lakh )and a sales tax exemption for an additional period of one year.
  
• Subsidy for quality control measures: The cost of laboratory equipment for the purpose of quality control and ISI/ BIS/ISO 9000 certification will be reimbursed subject to a maximum ceiling of US$ 1083.73 for SSI and Rs. 1 lakh for large and medium units.
  
• Stamp Duty exemption: Fifty per cent of stamp duty and registration fee for securing loans from financial institutions shall be exempted from the stamp duty act for a period of five years.

Thrust Areas

• Food Processing Industry:
  
• Tourism Industry
  
• Agro Based Industry
  
• Mineral based industry
  
• Handloom and Handicrafts
  
• Sericulture
  
• Floriculture
  
• Electronics and IT
  
• Pharmaceuticals
  
• Petrochemicals
  
• Biotech Industries

Potential Areas for Exports

• Forest produce
  
• Cane and Bamboo handicrafts (Machine made Bamboo sticks, blades, ply)
  
• Wood produce and artifacts
  
• Handloom and Handicrafts
  
• Organic, sub tropical fruits and vegetables

Growth Centres

Industrial Growth Centre

An Industrial Growth Centre with high standard infrastructure is being set up at Ganeshnagar near Dimapur. The Growth Centre would provide dedicated Power, sufficient water supply and communication facilities besides other facilities like banks, post offices, fire station, police station, etc in an industry friendly environment.

Industrial Estates

Two Industrial Estates have been established at Dimapur. The Estates, managed by NIDC provides ready built Industrial Sheds at nominal rent to industrial units. Augmentation of the facilities at the Industrial estates is being considered. The Department has also established Mini Industrial Estates with ready built industrial sheds at Kiphire and Tizit.

Export Promotion Industrial Park

An Export Promotion Industrial Park with state of the art and environment friendly industrial infrastructure and facilities is being set up at Ganeshnagar near Dimapur. The Park, spread over an area of around 80 acres and adjacent to the Industrial Growth Centre, would provide industrial plots as well as ready built Standard Design Factories, state of the art Convention Centre with hi-tech communication services, secretarial services, besides other facilities.

Useful Web Links

• Government of Nagaland
  
• Nagaland Industrial Development Corporation