MEGHALAYA

INDUSTRIAL POLICY (1997)
OBJECTIVES

With a view to take advantage of the liberalised economic scenario in the country. And also to keep pace with development in the national industrial sector, Government of Meghalaya has decided to frame a new industrial policy . The objectives of this new policy are as follows :-
1. Generate employment opportunities for the local people in the industries and allied sectors.
2. Develop human resources and bring about improvements about the quality of life by promoting industries in sectors where the state has comparative advantage.
3. Achieve a balanced and growth oriented development covering the entire state through promotion of village and small scale industries.
4. Create a conductive environment for industrial development by creation of the basic infrastructural facilities and by setting up of industrial areas, growth centre and export promotion industrial park.
5. Encourage the setting up of selective medium and large industries by utilising the resource base of the state thereby ensuring sustainable industrial growth but compatible with ecological imperatives and hence encourage positive efforts towards the regeneration of the environment.
6. Provide preference to local entrepreneurship in setting up of large, medium and small scale units.
7. Promote local interests through joint ventures with external investors so as to facilitate technology transfer and capital flow by a package of suitable incentives.
8. Encourage need-based development of local entrepreneural skills through intensive motivation and training programmes at district, sub-divisional and block levels.
9. Provide guidance to prospective entrepreneurs by building up a data bank of project-profiles and other connected information.
10. Simplify rules and procedures by providing a single-window clearance facility at the District Levels for the small scale sector and at the State Level for medium and large scale industries.
11. Promote the setting up of ancillary units for catering to the requirements of large and medium scale industries.
12. Identify sick units that can be made viable and provide a comprehensive package of assistance for their revival.
13. Promote and encourage high-value, low volume products, in view of the transportation-bottlenecks in the State.
14. Encourage setting up of Export-oriented, Agro-based, Mineral-based, Horticultural-based and Electronic units as thrust area.

B. SALIENT FEATURES OF THE INDUSTRIAL POLICY,1997
The following are the salient features of the policy on industrial promotion :-
State Government welcomes the advent of advanced technologies and external investments, preferably in the joint sector, which would promote the economic development of the region.

State Government consider the public sector as an important agency to promote social justice and balanced growth. However, in the context of on-going changes in the policies of the Government of India, the need for mitigating the growing unemployment , and constraints on budgetary resources, State Government welcomes private sector investment for rapid industrialisation and accelerated growth in the State. To encourage industrialisation along these lines, Government would provide need based budgetary support where required.

Along with the private and public sectors, the Government looks upon the joint and assisted sectors as effective instruments for rapid industrialisation as well as for mobilisation of necessary resources and expertise in vital areas of economic activity.

State Government recognises that improvement and upgradation of industrial infrastructure is essential for accelerated growth of industries. Emphasis would be on improvement in roads, construction and upgradation of airport, construction of rope-ways, improvement in communications and power supply and development of export promotion industrial park and growth centers with all connected facilities.

State Government would expedite suitable approval under the Meghalaya Land Transfer Act so as to facilitate investment in the industrial sector.

In case of sick/ closed industrial units, State Government would assist in conducting diagnostic studies to enable a view to be taken, within a specific time frame, regarding future of such units.

State Government has set up a Single Window Agency under the Chairmanship of the Chief Secretary to provide time-bound decisions and clearances in respect of investment proposals. The Government will also constitute similar district level committee(s) for the concerned District(s) under the Chairmanship of the Deputy Commissioner(s) to ensure quick decision making for enabling effective setting up of industries.

State Government has decided that The Meghalaya Industrial Development Corporation Ltd. (MIDC) will provide escort services for the large and medium scale industries under suitable terms and conditions.

In order to develop human resources through the upgradation of skills, training institutions would receive due attention. Association of Private Sector in this important activity would be encouraged.

Government will provide suitable assistance to prospective or deserving entrepreneur(s) for gaining knowledge about advanced technologies as also acquiring training for the same.

C. INDUSTRIES IDENTIFIED AS THRUST AREAS
Based upon the industrial opportunities and potential available in Meghalaya, the following industrial sectors have been identified as thrust areas :-
1. Agro Based Industries
Meghalaya has a competitive advantage in agro-based industries. State Government is also implementing various development programmes for improving the production of horticultural and agricultural produces. In tune with this emphasis State Government will continue to give priority to agro-based industries, which will not only further strengthen the agricultural base of the State but also enhance employment opportunities. Further, State Government will assist in establishing appropriate linkages between the growers and the processors of agricultural produce.

The following agro-based units will be encouraged  to come up in Meghalaya -
Horticulture-Based Units
Such horticulture based units in the state will include food processing , mushroom cultivation and processing. All these products have a good market not only in the state and rest of India but also in the neighbouring countries.
Bio-technology Based Units
There exist a high potential for the setting up of select , bio-technology based industries in Meghalaya. This industry is essentially knowledge-based and can function with minimum resources and limited transportation infrastructure.
Tissue Culture and Orchid Units
India accounts for 1300 species of orchids of which 150 are found in Meghalaya. Orchid cultivation can be taken up viably as an industry in the State. Orchid have a high value realisation in the international markets. Encouragement will be given to large scale commercial exploitation in a systematic and scientific manner through tissue culture. Flori-culture will also be encouraged on a similar basis.
Spices , Oleoresin and other Essential Oils Units
A number of spices and aromatic plants grow in different parts of Meghalaya. This can be used for the production of high value export items such as spice oils, oleoresin and other essential oils. State Government will encourage the setting up of units in this sector.
Medicinal Plants, Tea and Rubber
Medicinal plants have a good potential for development in Meghalaya. Commercially viable medicinal plants will be identified and their potential assessed , based on which drugs and pharmaceuticals units would be encouraged.

Meghalaya has a good potential for cultivation of tea and rubber although their processing through large scale plantation activities has not been taken up on an organised scale. Government will provide necessary support for development of this areas.

2. Animal Husbandry and Meat Processing industries

Given the large demand-supply gap of meat in the North Eastern Region. Meghalaya needs units for hygienic and scientific processing of poultry, piggery and other meat products.

Meghalaya has a high potential for development of dairy and allied products as well as for processing of animal hides and skins and for setting up leather industries.

Units in the above sectors would be encouraged.

3. Development of Mineral based Industries
Meghalaya is rich in minerals like high grade limestone, coal , granite, siliminate, industrial clay, quartz, feldspar, etc. The following mineral based industries will be encouraged.
Coal Based Industries
Meghalaya produces large quantities of coal of very high calorific value with low ash content but high sulphur content. This coal can be used for production of several chemicals and other industrial products.
Limestone Based Industries
Meghalaya has large deposits of limestone. The quality of these deposits varies from cement grade to chemical grade. The following projects can be set up by utilising the limestone deposits of the state.

Cement Plants
Lime Plants
Calcium Carbide Plants
Precipitated calcium carbonate Units and Bleaching Power Units
Other mineral-based Industries
A few other industries that can come up in this sector in Meghalaya are as follows:-

Granite mining and polishing
Silimanite refractory and other allied industries
Clay Washery
Ceramic glazed tiles
Cement based mosaic tiles
Ceramic crockery and Ceramic low tension insulators

4. Electronics & Information Technology
The State Government will encourage setting up of electronic-based industries and complexes in the sphere of information technology in private sector and/or joint sector.

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