INDIA: Handique inaugurates 5th North East Business Summit
82,000 crores invested in three years by Union Govt.

7 Jan 2009

The Minister of Mines and Minister of Development of North Eastern Region (DoNER), Shri B.K. Handique has said that in the last ten years, there has been a sustained effort on the part of Government to invest in the physical infrastructure of the Region, particularly in expanding the road, rail, air, power and telecommunications connectivity. Inaugurating the 5th North East Business Summit in Kolkata today, he said that within the first three years of 11th Plan over Rs.82000 Crore, equivalent to about 18 billion US Dollars, has already been spent in the region by the Central Government. However, during the same period, the private investment has been almost negligible.

On the occasion, Shri Handique informed that Investment by the Central Government in the North Eastern Region during the 10th Plan was about Rs. 80,000 crore.

The two-day Business Summit has been jointly organized by the Indian Chambers of Commerce in association with the Ministry of Development of North Eastern Region.

The Summit will focus on the
Building International Partnerships,
Enhancing Infrastructure in the North East,
Tourism: Horizons of Heaven,
Agriculture : Spices, Floriculture and Aqua Culture,
Healthcare,
IT & Skill Development and Developing Investment Hubs.

A Chief Ministers’ Conclave will also be held to discuss the Perspective and Strategies for the Development of North Eastern Region.

Following is the text of the speech made by the Minister of Mines and DoNER at the inauguration the 5th North East Business Summit on 8th January 2010 at Kolkata:

1. It gives me a great pleasure to be a part of the Fifth North East Business Summit in Kolkata, a city of great significance to the States of the NE Region. The Summit provides an opportunity to the private and public sector to interact with each other.

2. I take this opportunity to compliment the Indian Chamber of Commerce for taking the lead in organizing this event. I would also like to thank the State Governments, Central Ministries and Departments, Public sector undertakings and others who have co-operated in this venture to make it a grand success.

3. The North Eastern Region is rich in natural and human resources. It is a treasure trove of diverse flora and fauna, a veritable paradise for those who seek to be close to nature. But this is not the end of the story. At one time, the second highest export earner for the country – tea – was, and still is, synonymous with this region. There are other areas waiting to be fully exploited. Unfortunately, the partition of 1947 brought in its wake an economical decline and a geographical disconnect. This situation so pervades the minds of investors that very often a factual picture gets clouded.

4. However, it is time for all the concerned to take cognizance of the change in the character of the market so as to make corresponding changes in the orientation and approach to the potential business in the North East Region as well.

5. We, in the Government, have realized that new frontiers for development of the region in the offing in the hither to unknown sectors in the Region. These include development of natural resources including horticulture, floriculture and mineral resources. In fact, in the month of November 2009, an investor meet for mineral sector for the region was successfully held at Guwahati.

6. In the last ten years, there has been a sustained effort on the part of Government of India to invest in the physical infrastructure of the Region, particularly in expanding the road, rail, air, power and telecommunications connectivity.

7. Investment by the Central Government in the North Eastern Region during the 10th Plan was about Rs. 80,000 crore. Under the leadership of our respected Prime Minister, Dr Man Mohan Singhji and under the able guidance fo Smt Sonia Gandhiji, I am happy to state that within the first three years of 11th Plan over Rs.82000 Crore, equivalent to about 18 billion US Dollars, has already been spent in the region by the Central Government. However, during the same period the private investment has been almost negligible.

8. As I stated earlier, the change in the market character has been recoginized by the Government. Therefore, the Central Government has taken steps to commission Gas Cracker and Polymer Project near Dibrugarh, Assam by April 2012 with an investment of Rs 5460 Crore. This Project will produce 2.2 lakh tonnes of Poly Ethylene, 60, 000 tonnes of Poly Propylene and 2.8 lakh tonnes of Polymer per annum unleashing potential for large number of downstream industries in the Region.

9. Further, the aggressive Look East Policy of the Government would enable opening of more trade routes to the neighbouring countries. A case in the point is Kaladan Multi Modal Transport project. Through this project, the land-locked Region would get access to Bay of Bengal through Sittwe port in Myanmar. This Port is connected through Kaladan River which in turn lead to Aizwal in Mizoram by Road. The work in this regard has already commenced by the Ministry of External Affairs.

10. Efforts are also on to increase the air connectivity to the Region from rest of the country and more particularly, within the Region. The Central Government has already unfolded the agenda to connect all capitals of the NE States with rail heads along with extending and improving all National Highways including an ambitious Trans-Arunachal.

11. Let me also mention that the economy of this region post liberalisation of early 1990’s has grown manifold, which is very often forgotten in comparing the North East States with rest of India. In fact, the statistics reveal that the GSDP growth rates of Nagaland, Sikkim and Tripura are actually above the national growth rate.

12. There has been substantial improvement in the eradication of poverty in absolute numbers- States which record very high in this aspect are Sikkim, Tripura, Meghalaya and, which might come as a surprise to many, even Assam.

13. The floricultural & horticultural wealth of this region is well known. What is perhaps less well known is that this region has large reserves of oil and gas, limestone, coal, chromite, sillimanite, dolomite, glass sand and other industrial minerals. The GSI is yet to survey this region exhaustively. Gold and Silver are said to have been extracted from the placer deposits abundantly found in the major rivers of the region namely the Subansiri, the Bharoli, the Dosio and the Janglupani during the reign of Ahom Kings.

14. The social parameters also present an unexpectedly, to many of the investors, bright picture. Health and education in terms of longevity and literacy rate etc. in the North Eastern Region are much higher than the rest of India. Further, anyone who travels to the region is well aware that gender equality is a way of life.

15. The result has been that the composition of Gross State Domestic Product for the North Eastern States is still characterized by the dominance of Primary (agriculture) sector. In the last decade, there has been some growth in the Tertiary Sector largely a result of governmental spending. The secondary sector (manufacturer) etc. has remained virtually stagnant.

16. We have collectively failed to convert the natural advantages and the public investment into an economic opportunity. Perhaps the reasons are primarily -

(i) The perception of NER as being ridden with insurgency, militancy and terrorism. This perception is completely at variance with ground realities. What is required is the appreciation of a true and more nuanced picture of the vast swathes in NER of total peace and tranquillity, impeccable law and order, and iron-clad security. Unless this is fully imbibed, we will not succeed in attracting the requisite investment in all sectors of the NER economy. In this connection, I would request the members of this august gathering to travel beyond a few big cities to see and experience themselves the ground situation.

(ii) Secondly, perhaps in the planning, locating, or implementation of schemes in NER, we need to have greater understanding of their commercial viabilities if we expect them to become precursors to economic development.

17. This is a task which cannot be performed by Governments alone. The role of the private sectors and the civil society including the Fourth Estate cannot be underestimated.

18. I now come to very positive trends that are bringing about a perceptible social and economic transformation.

19. The private sector has been playing some role in skill building and enhancing employability of the young people – but this is mostly done by taking the people outside this region. Today the most public face of the service sector in the country’s capital and other metros is the N.E. face from front desk to service assistance. I welcome this step – it is ushering in and will continue to generate greater cohesion in society – but the need of the hour is to bring in entrepreneurial skill within this region to fuel its own growth.

20. North-Eastern region is a market itself waiting to be discovered. Nearly 4 crores of people of the NER viewed concurrently as ‘consumers’ of various goods and services can drive its on economic growth. It can be done – if only the various public & private stakeholders put together appropriate policy framework, financial mechanism and entrepreneurial abilities.

21. I assure you, my friends, as a person coming from this region, the people will not be found wanting in their ability to learn & dedicate themselves to become co-builders of a new era of peace and prosperity.

22. Before I conclude, I would like to thank all the delegates who have made it possible to attend this Summit. I also thank Indian Chamber of Commerce for all their sincerity in organizing this Summit in association with my Ministry of Development of North East Region.