meghalaya - ibefdecember 2016 national highway length (km) 100,087.081,204.36 nhai & roads and...

For updated information, please visit www.ibef.org July 2017

MEGHALAYA

ABODE OF CLOUDS

Table of Content

Executive Summary……………….….…..3

Advantage Meghalaya……………………5

Vision 2020 ………………………………..6

Meghalaya – An Introduction….…….……7

State Budget……………………….....……18

Infrastructure Status.................................19

Business Opportunities …….……....……32

Doing Business in Meghalaya…...….......49

State Acts & Policies…….………......……51

For updated information, please visit www.ibef.org MEGHALAYA 3

EXECUTIVE SUMMARY … (1/2)

Meghalaya’s GSDP stood at US$ 4.59 billion in 2016-17. The state’s GSDP grew at a CAGR of 6.81% between

2011-12 and 2016-17.

Highest GSDP among

Northeast states

Source: : Directorate of Economics & Statistics of Meghalaya, Central Statistics Office, Government of Meghalaya, Department of Agriculture

Meghalaya, with an average annual rainfall of 1,150 cm, receives the highest amount of rainfall in the country.

The diverse range of soil types, including red-loamy & laterite, support various agricultural crops like rice, maize,

pulses, oilseeds, cotton, jute & mesta.

State with the highest

rainfall

With a vascular plant diversity of 3,331 & more than 300 varieties of orchids, Meghalaya has a strong

floriculture sector & is one of the leading states in the Northeast in terms of production and supply of cut

flowers to mainland consumer markets.

Strong floriculture sector

About 14% (3,108 square kms) of Meghalaya is covered by bamboo forests & the state is one of the leading

bamboo producers in the country.

Strong bamboo

processing sector


EXECUTIVE SUMMARY … (2/2)

Of the 6,000 medicinal plants in India, 834 plants, including the famous Himalayan Yew, are in Meghalaya.

Moreover, the state has 8 of the top 20 medicinal plants that are traded in the country & are in high demand.

Strong potential of

medicinal plants industry

Source: : Central Electricity Authority, Ministry of Tourism

Meghalaya had an installed hydroelectric power capacity of 387.19 MW as of July 2017. The potential for

hydropower in the state is estimated to be around 3,000 MW.

Large hydroelectric

power potential

Meghalaya, with abundant deposits of coal, limestone, kaolin feldspar, quartz, granite, industrial clay &

uranium & a small deposit base of sillimanite, bauxite, base metals & apatite; has great industrial potential. Strong mining sector

Meghalaya, one of the most picturesque states in the country, has 2 national parks & 3 wildlife sanctuaries. It

offers many adventure tourism opportunities like mountaineering, rock climbing, hiking & trekking, water

sports, etc.

Tourist destination


ADVANTAGE MEGHALAYA

Conducive agro-climatic conditions

Meghalaya has favourable agro-climatic conditions that

support agriculture, horticulture & forestry; there is

potential for development in related areas.

The state has abundant natural resources, which offer

significant avenues for investment.

Policy and fiscal incentives

In addition to the central government’s incentives for

investments in the northeast region, the state offers a

host of industrial incentives.

Agro-processing, horticulture, minerals, tourism,

electronics & IT have been identified as thrust sectors

for development & promotion.

In June 2017, the state government passed the GST

bill. The commodities used by the poorest section of

society to be considered at the lowest rate.

Institutional support

The state provides excellent institutional support

through various central and state government

agencies, namely North East Council, Ministry of

Development of Northeastern region, and Meghalaya

Industrial Development Corporation.

Rich labour pool

Meghalaya has a literacy rate of 74.4%.

The state has a strong higher education infrastructure.

Moreover, a majority of the local population speaks and

understands English.

GSDP

GSDP at

current

prices grew

at a CAGR

of 6.81%

between

2011-12 and

2016-17.

Per Capita

GSDP

Per capita

GSDP at

current

prices grew

at a CAGR

of 4.93%

between

2011-12 and

2016-17.

Advantage

Meghalaya


MEGHALAYA VISION 2030

Empowerment of

people for inclusive

growth

Promoting market

friendly policies &

institutions

Sustainable

development based

on comparative

advantage Expanding trade &

investments

Capacity

development of

people &

institutions

Infrastructure

development for

manufacturing &

markets

Ensuring

opportunities to

vulnerable

section of

population

• Responsive governance.

• Speedy clearances.

• Availability of land, water & power for

rapid industrialisation.

• Undertake measures to attract

investments.

• To open up rural roads.

• To set up cold storage

facilities.

• To promote market facilities

for farmers.

• To bring capacity to

undertake organic farming.

• To improve agricultural

productivity.

• To ensure balanced use of

fertilisers.

• Adoption & promotion of

scientific methods of

cultivation.

• Significant expansion of

irrigation.

• To build an efficient

network of transport.

• To ensure state of the art

infrastructure.

• To modernise Chittagong port.

• To build border trade

infrastructure.

• To develop diplomatic

initiatives.

• To improve formal education

system.

• To draw up & implement plan

schemes.

• To ensure responsive and

market friendly governance.

• To provide education, healthcare &

employment opportunities to

vulnerable sections of society.

• Woman empowerment.

Vision

2030

• To ensure regular & quality

power supply.

• To provide access to

Chittagong port.

Source: National Institute of Public Finance and Policy


MEGHALAYA FACT FILE

Source: Government of Assam, Census 2011

Meghalaya is located in the Northeast of India. The state shares its

border on the north & east with Assam & on the south & west with

Bangladesh.

English is the official language of Meghalaya. Khasi, Pnar & Garo are

the other principal languages.

Meghalaya is the wettest state in the country with an average annual

rainfall of 1,150 cm. It has numerous rivers, the major ones being

Manda, Damring, Janjiram, Ringge, Ganol, Simsang, Khri, Umtrew,

Umiam, Umkhem, Kupli, Kynshi, Umiam Mawphlang & Umngot.

Meghalaya has diverse soil types including red-loamy, laterite, red &

yellow soils. These soils have fine textures ranging from loam to

silty-loam & alluvial soils. These types of soils support a variety of

agricultural crops.

Shillong, Sohra, Tura Jowai, Nongstoin, Williamnagar, Nongpoh &

Baghmara are some of the key cities in the state.

Source: Maps of India

Parameters Meghalaya

Capital Shillong

Geographical Area (sq km) 22,429

Administrative Districts (No) 7

Population Density (persons per sq km) 132

Total Population (million) 2.97

Male Population (million) 1.49

Female Population (million) 1.48

Sex Ratio (females per 1,000 males) 989

Literacy Rate (%) 74.43


MEGHALAYA IN FIGURES … (1/2)

Parameter Meghalaya All states Source

Economy 2016-17 2016-17

GSDP as a percentage of all states’ GSDP 0.19 100.0 Central Statistics Office

GSDP growth rate (%) 10.55 11.52 Central Statistics Office

Per capita GSDP (US$) 1,373.5 1,709.39 Central Statistics Office

Physical Infrastructure

Installed power capacity (MW) 558.32 330273.65 Central Electricity Authority, as of June 2017

Wireless subscribers (No) 12,490,000 1,170,180,000 Telecom Regulatory Authority of India, as of

February 2017

Internet subscribers (No) 4,750,000 422,190,000 Telecom Regulatory Authority of India, as of

December 2016

National Highway length (km) 1,204.36 100,087.08 NHAI & Roads and Building Department

Airports (No) 1 125 Airports Authority of India

1Combined figures for the Northeast states comprising Arunachal Pradesh, Assam, Meghalaya, Manipur, Nagaland, Sikhim, Tripura


MEGHALAYA IN FIGURES … (2/2)

Parameter Meghalaya All states Source

Social Indicators

Literacy rate (%) 74.43

73.0 Census, 2011

Birth rate (per 1,000 population) 23.9 21.6 SRS Bulletin

Investments

FDI equity inflows (US$ billion) 0.0961 332.11 Department of Industrial Policy & Promotion, From

April 2000 to March 2017

1FDI inflows for RBI’s (Reserve Bank of India’s) Guwahati-region, which includes Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura


ECONOMIC SNAPSHOT – GSDP

At current prices, Meghalaya’s total GSDP stood at US$ 4.59 billion

during 2016-17.

The state’s GSDP grew at a CAGR of 6.81 per cent between 2011-

12 and 2016-17.

Visakhapatnam port traffic (million tonnes) GSDP of Meghalaya at current prices (in US$ billion)

Source: Directorate of Economics & Statistics of Meghalaya, Central Statistics OfficeGSDP* - Central Statistical Organisation

3.0

9 3.3

9

3.5

6

3.7

8 4

.15

4.5

9

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

CAGR 6.81%


ECONOMIC SNAPSHOT – NSDP

At current prices, Meghalaya’s total NSDP stood at US$ 4.11 billion

during 2016-17.

The state’s NSDP grew at a CAGR of 6.63 per cent between 2011-

12 and 2016-17.

Visakhapatnam port traffic (million tonnes) NSDP of Meghalaya at current prices (in US$ billion)

Source: : Directorate of Economics & Statistics of Meghalaya, Central Statistics Office NSDP# - calculated using per capita NSDP x Population in million

2.8

3.1 3

3.1

3.73

3.41

4.11

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 6.63%


ECONOMIC SNAPSHOT – PER CAPITA GSDP

Meghalaya’s per capita GSDP in 2016-17 stood at US$ 1,373.5 in

comparison with US$ 1029 in 2011-12.

Per capita GSDP of the state grew at a CAGR of 4.93 per cent

between 2011-12 and 2016-17.

Source: Directorate of Economics & Statistics of Assam, Central Statistics Office GSDP* - Assam Budget Estimates 2016-17 Per Capita GSDP^ - calculated using GSDP million US$ /

Population in million

Visakhapatnam port traffic (million tonnes) Per capita NSDP (US$)

1029

1106 1136

1183

1269

1374

0

200

400

600

800

1000

1200

1400

1600

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 4.93%


ECONOMIC SNAPSHOT – PER CAPITA NSDP

Meghalaya’s per capita NSDP in 2016-17 stood at US$ 1,231 in

comparison with US$ 931 in 2011-12.

Per capita NSDP of the state grew at a CAGR of 4.76 per cent

between 2011-12 and 2016-17.

Source: Directorate of Economics & Statistics of Meghalaya, Central Statistics Office Per Capita NSDP^ - Economic and Statistical Organisation, Punjab (ESOPB)

Visakhapatnam port traffic (million tonnes) Per capita NSDP (US$)

931

994 1011.0 1059

1136

1231

0

200

400

600

800

1000

1200

1400

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 4.76%


ECONOMIC SNAPSHOT – PERCENTAGE

DISTRIBUTION OF GSDP

At a CAGR of 16.13 per cent, the secondary sector was the fastest

growing among the 3 sectors during 2004-05 to 2015-16. Growth has

been driven by manufacturing, construction, electricity, gas & water

supply.

The tertiary sector, the largest contributor to Meghalaya’s economy,

expanded at a CAGR of 15.23 per cent between 2004-05 & 2015-16.

It was driven by trade, hotels, real estate, finance, insurance,

transport, communications & other services.

The primary sector grew at a CAGR of 9.47 per cent between 2004-

05 & 2015-16.

Visakhapatnam port traffic (million tonnes) Percentage distribution of GSDP

38.20%

14.32%

22.40%

30.85%

39.40% 54.83%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004-05 2015-16

Primary Sector Secondary Sector Tertiary Sector

9.47%

15.23%

16.13%

CAGR

Source: Central Statistical Organization, Aranca Research Estimates Sector-wise %share of GSDPµ -Geometric mean of YoY calculation from 2004-05 to 2014-15


ECONOMIC SNAPSHOT – AGRICULTURE

PRODUCTION

Citrus fruits, pineapples, bananas, papayas, plums, peaches &

apricots are the major fruits grown in Meghalaya. Turmeric, ginger,

black pepper & bay leaves are the major spices cultivated in

Meghalaya. The state is also promoting tea cultivation in selected

areas.

The state has achieved success in the cultivation of non-traditional

crops like tea, cashew nut, oilseeds, tomato, mushroom, wheat, etc.

The state government is making use of eco-friendly bio-fertilisers &

pesticides, bio-control agents, integrated nutrient management &

green manure for eliminating the deleterious effects of chemical

fertilizers & pesticides on soil. Under budget 2016-17, the state

government proposed an outlay of US$ 44.69 million for agriculture

& horticulture sectors in the state.

Under the 12th Five Year Plan, valid from 2012 to 2017, US$ 54.66

million was proposed to be invested for improving the agriculture

sector of the state. One of the objectives under the 12th Five Year

Plan is to enrich the rice production in the state. The government

allocated US$ 2.49 million for agricultural research & education and

US$ 46.52 million for Rashtriya Krishi Vikas Yojana aiming at

attracting public investment in agriculture & allied sectors.

Poultry farming in the state is growing as an increasing number of

people have started poultry rearing as backyard farming for domestic

as well as commercial purposes. The farmers are trained by the

animal husbandry & veterinary department to rear layer, turkey &

broiler poultry as well as on hatching programme.

Source: Ministry of Agriculture, Government of India, State Budget 2016-17

Crop Annual production – 2016-17

(‘000 MT)

Fruits 447.27

Vegetables 541.89

Flowers 2.64

Spices 92.20

Plantation crops 32.93

Honey 0.20

As per budget 2016-17, the government will be putting emphasis on

propagation & promotion of indigenous crops including Sophie,

Sohiong, etc., during 2016-17. Moreover, persistent implementation

of Mission Organic, an initiative taken by the state government for

the endorsement of organic farming, would be undertaken in the

state.


ECONOMIC SNAPSHOT – FDI INFLOWS &

INVESTMENTS

According to the DIPP, cumulative FDI inflows1 to the North eastern

states during April 2000 to March 2017, stood at US$ 96 million.

For attracting more investments & coming up with a strategy to

generate skilled & competitive work force, the Government of

Meghalaya has decided to establish an Investment Promotion

Council in the state, during 2016-17.

The industry sector is the fastest growing segment in the state’s

GSDP at constant price between 2004-05 & 2014-15. In 2004-05, the

contribution of the services sector in state’s GSDP at constant prices

was US$ 382.7 million, which reached US$ 682.3 million in 2014-15.

Visakhapatnam port traffic (million tonnes) FDI equity inflows1, 2008-09 to 2016-17 (US$ million)

Source: : Department of Industrial Policy & Promotion1Including Assam, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Tripura

42

11

8

1

5

0.6

5

10

2

0

5

10

15

20

25

30

35

40

45

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7


ECONOMIC SNAPSHOT – EXPORTS TRENDS

Overall exports from the state increased from US$ 84.20 million in 2010-11 to US$

86.92 million in 2014-15.

An EPIP has been set up in Byrnihat over an area of 259 acres to promote exports.

The unit is located at Byrnihat.

Meghalaya shares a 443-km border with Bangladesh & has 10 land custom stations to

aid exports.

The key commodities exported to Bangladesh are coal, limestone, boulder stone,

agricultural produce & raw hides & skins.

As per budget 2016-17, the state government is focusing on establishing & developing

export infrastructure with enhancement & improvement of land custom stations,

integrated check posts, etc. along with creating Border Haats across the border of

India-Bangladesh.

In March 2017, the state government proposed opening of 22 border haats, along

the India-Bangladesh border. The 2 existing haats at Kalaichar & Balat have not only

promoted trade but have also strengthened ties between people of both the countries.

Source: Ministry of Commerce, News Article EPIP: Export Promotion Industrial Park

Status of industrial units at EPIP, Byrnihat

Status Of industrial units Number of industrial units Total area occupied (In acres)

Units already established 25 76.92

Under implementation 12 26.71

Yet to be implemented 3 4.19

Export trends (In US$ million)

84

.20

86

.92

82.5083.0083.5084.0084.5085.0085.5086.0086.5087.0087.50

201

0-1

1

201

4-1

5


BUDGET 2016-17

Sector Budget

(US$ million)

District councils 0.16

Power 20.39

Roads and bridges 110.63

Transport 2.64

Education 141.22

Sports and Youth Affairs 7.95

Health and Family Affairs 65.33

Arts and Culture 6.36

Social Welfare 59.92

Food, Civil Supply and Consumer

Affairs 110.63

Revenue and Disaster Management 0.40

Information Technology 9.61

Tourism 7.94

Civil Defence and Home Guards 0.52

Information & PR 1.52

Sector Budget (US$ million)

Water supply and sanitation 54.44

Agriculture and horticulture 44.69

Fisheries 7.06

Animal husbandry and veterinary 8.90

Water resources

30.91

Soil and water conservation 30.09

Sericulture and weaving 5.77

Forest and environment 7.45

Community and rural development 268.75

Cooperation 4.16

Border areas development 9.30

Commerce and industries 4.33

Mining and geology 0.57

Urban development 41.45

Housing 9.31

Personnel 0.93

Labour 4.13

Prisons 6.54


PHYSICAL INFRASTRUCTURE – ROADS … (1/2)

The state is well connected to its neighbouring north-eastern states &

other parts of India through 5 National Highways: NH-40, NH-44,

NH-51, NH-62 and NH-127B.

During 2015-16, at a cost of US$ 5.80 million, 63 km long kutcha

roads, 22 km long new roads & 180 running metres of the RCC

bridges were fabricated in the state under the state plan.

During 2016-17, the Government has sanctioned 45 roads project

under the Rural Infrastructure Development Fund (RIDF-XXII) with a

cost of US$ 17.07 for construction, improvement and conversion of

Semi permanent timber bridges into RCC bridges in different parts of

the State

Under the budget 2017-18, the government allocated an amount of

US$ 93.32 million for a total of 208 number of schemes under a

dedicated fund – the Special Plan Fund (SPF) to upgrade State

highways, major district roads and construction of critical roads and

strategic roads across the State.

Under the budget 2017-18, the government allocated an amount of

US$ 106.02 million for Roads & Bridges, in comparison with a lower

allocation of US$ 70.18 million, the last year.

As of 2015-16, around 218 eligible habitations have been linked

along with the accomplished road length of 687 km.

Moreover, during 2016-17, the state government is targeting to

connect 60 habitations, which would cover a total road length of 300

km.

Source: Maps of India

Road type Road length (km)

2015-16

National highways

1,204.36

State highways 1,134

Rural roads 1,569

Source: Ministry of Road Transport & Highways


PHYSICAL INFRASTRUCTURE – ROADS…(2/2)

Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in 2000

with the objective of connecting eligible rural habitants. During 2015-

16, up to October 2015, about 10.03 km of road network was

completed across Meghalaya and 3 habitant were benefited.

National highway length completed (km)

293 303

88

665

0

100

200

300

400

500

600

700

2012-13 2013-14 2014-15 2015-16

5.76

12.72

9.27

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

2013-14 2014-15 2015-161

Source: NHAI Note: 1up to October 2015-16

Expenditure on road works under PMGSY in Meghalaya

(US$ million)

Pradhan Mantri Gram Sadak Yojana (PMGSY) in Meghalaya

(During 2015-16- up to October 2015)

Habitants connected 3

Length completed 10.03

Total expenditure (US$ million) 9.26

Source: PMGSY


PHYSICAL INFRASTRUCTURE – RAILWAYS AND

AIRPORTS

Railways

The nearest railway station is in Guwahati, Assam. New railway lines on Azra-Byrnihat, Dudhnoi-Mendipathar and Byrnihat-Shillong routes are

under construction.

The foundation stone of Mendipathar railway station was laid in September 2013. The total length of the broad gauge railway route from Dudhnoi

(Assam) to Mendipathar (Meghalaya) is 19.75 km.

In May 2016, new passenger trains were flagged off by Prime Minister Narendra Modi. Moreover, the railway project of Byrnihat-Shillong in

Meghalaya is expected to be commissioned by 2019-20.

Airports

Meghalaya has two airports located in Shillong and Baljek. The

Shillong airport (Barapani Airport) is fully operational, while the Baljek

Airport is under construction/upgradation.

In 2015, the state government allocated land to the Airports Authority

of India for

the expansion of Umroi Airport, Shillong.

The Airports Authority of India has taken up a proposal to upgrade

the Shillong airport to enable large aircrafts to land.

Helicopter services are available from Guwahati to Tura

In 2015-16, the domestic passenger traffic at the Barapani was

11,565

Barapani Airport 2014-15 2015-16

Total passenger

traffic 10,346 11,565

Aircraft

movement (nos.) 432 500


PHYSICAL INFRASTRUCTURE – POWER…(1/3)

Installed power capacity in Meghalaya (MW)

28

8.1

0

28

9.6

0

28

9.6

0

37

3.6

0

45

5.3

0

45

5.3

0

49

4.8

0

51

0.4

5

51

8.3

2

0.00

100.00

200.00

300.00

400.00

500.00

600.00

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

Source: : Central Electricity Authority

As of June 2017, Meghalaya had a total installed power generation

capacity of 558.32 MW, comprising 353.03 MW from state utilities

and 205.28 MW from central utilities. Of the total installed power

generation capacity, 387.19 MW was contributed by hydropower,

140.09 MW by thermal power, and 31.04 MW by renewable power.

During 2015-16, 315 KW SPV power plants of different capacities

were being installed across government buildings as well as rooftops

in the state. Work on manufacturing of 10 KW wind solar hybrid

system in the government college at Tura has also been taken up

during 2015-16.

Under the 12th Five Year Plan, valid from 2012 to 2017, the state

government proposed an outlay of US$ 603.02 million, wherein,

11.97% was proposed for power generation, 28.95% for power

transmission & distribution & the rest was proposed for survey &

investigation, re-engineering works, etc. Another US$ 3.98 million

was proposed for non-conventional sources of energy.

As per state budget 2016-17, the 2×20 MW New Umtru Hydro

Electric Project (NUHEP) is set to be commissioned within 2017-18

with the first unit expected to go for trial run in the last week of March

2017.

As per state budget 2016-17, to strengthen the distribution system as

well as sub-transmission systems of the state, the state government

has proposed to initiate system improvement works under Integrated

Power Development Scheme, during 2016-17.



Status of rural electrification in Meghalaya

(As of February 2017)

Area type Nos.

Total villages 6,551

Electrified villages 5,639

Un-electrified villages 912

Total rural households 4,63,022

Electrified rural households 3,23,755

Un-electrified rural households 1,39,267

Status of rural electrification in Meghalaya under DDUGJY

scheme (As of February 2017)

Area type Nos.

Un-electrified villages 1,842

Intensively electrified villages 2,947

Electrified BPL households 104,457

Rural electrification was taken up as a key initiative under the

Deendayal Upadhyaya Gram Jyoti Yojana, which was launched in

2015. The operational electrification scheme, that is, Rural Electricity

Infrastructure and Household Electrification, was subsumed in the

scheme launched in 2015. During 2015-16 (April to November), one

village was electrified.

As of 31st October 2015, 3 projects were closed in Meghalaya under

Rural Electricity Infrastructure and Household Electrification, for

which US$ 76.17 million was sanctioned and 88% of the sanctioned

amount was released.

Source: : Deendayal Upadhyaya Gram Jyoti Yojana



Central financial assistance/subsidy for renewable power

projects (US$ million)

0.3

0

1.4

8

1.3

9

1.4

0

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

Source: : Source: Indian Renewable Energy Development Agency Solar Energy Corporation of India

To popularise renewable energy technologies, Meghalaya Non-

Conventional and Rural Energy Development Agency is

implementing several projects to utilise energy sources such solar,

wind, biogas, biomass. For the overall power sector, the state

government proposed an outlay of US$ 20.3 million under the budget

2017-18.

As per the budget 2017-18, the Meghalaya New and Renewable

Energy Development Agency (MNREDA) is implementing projects to

popularize renewable technologies such as solar, wind, biogas,

biomass, etc. Under the solar component of the new and renewable

energy, 1067 KW of solar power plants have been Page 50 of 57

installed in the State so far. The Government is setting up two Solar

Parks of 10 MW each in the East Jaintia Hills and the West Jaintia

Hills District. The Government is also examining proposals to install

gridconnected rooftop solar power plants in private and Government

buildings.

North Eastern Electric Power Corporation Limited (NEEPCO) aims

to be a 2,000 MW public sector power generating company by the

end of 2017. The company is planning to commission three projects

in Meghalaya region, which would add 770 MW to the power

capacity.


PHYSICAL INFRASTRUCTURE – TELECOM

According to Telecom Regulatory Authority of India (TRAI), had

about 12.49 million wireless subscribers & 120,000 wire-line

subscribers as of March 2017.

By the end of 2017, 520,390 subscribers had submitted request for

mobile number portability (MNP) in the northeast. Moreover, total

tele-density in the northeast region was recorded to be 89.4% as of

March 2017. The total number of post offices in the Northeast, as of

December 2015, was recorded at 2,920.

As of March 2017, the northeast region had 120,802 wireline

subscribers for BSNL & 1,592,311 BSNL wireless subscribers.

The Department of Telecommunications (DoT) initiated a project in

2011, the National Optical Fibre Network (NOFN), with an aim of

connecting 250,000 gram panchayats across the country with

broadband services.

Telecom Infrastructure1 (As of March 2017)

Wireless subscribers 12,490,000

Wire-line subscribers 120,000

Internet subscribers 4,750,000

Rural Internet subscribers 2,220,000

Urban Internet subscribers 2,530,000

Performance status of NOFN Project (As of April 2016)

No. of GPs in Phase 1 638

Pipe laid (km) 988

Cable laid (km) 229

GPs for which cable laid 52

Source: Telecom Regulatory Authority of India, 1As of December 2016

Source: Telecom Regulatory Authority of India,1Combined figures for the Northeast

states comprising Arunachal Pradesh, Meghalaya, Manipur, Nagaland, Sikkim, Tripura,


DEVELOPMENT PROJECTS: URBAN

INFRASTRUCTURE

During 2015-16, the state government finished re-development work of parking lots as well as manufacturing of ISBT at Tura, which are expected

to be functional very soon. Further, the Government of India has also allocated a new project of manufacturing and developing parking-cum-

commercial facility centre at Tura.

Under the 12th Five Year Plan, valid from 2012 to 2017, the state government proposed an outlay of US$ 227.27 million for urban infrastructure

development, with the state government focussing on urban planning and development of small towns. Of the total proposed outlay for

urbanization, 7.92% was proposed for infrastructure development for Shillong city transport, 29.20% for township development in Shillong,

10.95% for urban development projects in Shillong and the rest for assistance to local bodies, environmental improvement of urban slums, etc.

Under budget 2017-18, the state government proposed an allocation of US$ 41.45 million for urban development in the state with improvisations

in physical and social infrastructure in order to improve the standard of living of people in the state.

As per budget 2016-17, the 256 housing units at Nongmynsong, housing project for urban poor as well as Solid Waste Management Project at

Tura are estimated to accomplish their operations very soon in the state. Structuring work of 256 housing units at Nongmynsong and 48 housing

units at Mawprem was initiated in the state during 2015-16.

In addition to these projects, various projects, such as, enhancement of fire brigade junctions as well as polo market area, etc., have been taken

up by the state government during 2015-16 for making the city of Shillong more beautiful.

Under budget 2016-17, the state government proposed an allocation of US$ 38.64 million for implementing water supply projects and sewerage

projects across the state.

Source: Government of Meghalaya. State Budget 2016-17


DEVELOPMENT PROJECTS: PUBLIC-PRIVATE

PARTNERSHIP (PPP) PROJECTS

Meghalaya has two operational projects operational under the PPP mode as of July 2017:

Source: Department of Economic Affairs, Government of India, Public Private Partnerships in India

Contract Authority Sector-Sub Sector Investment

(US$ million) Stage

National Highways Authority of India

Jorabat-Shillong NH-40 Road Project Transport - Road

and Bridges 81.88 Completed

Road Upgradation (Shillong) Project Transport - Road

and Bridges 34.54 Completed

As per the budget 2016-17, an amount of US$ 16.41 million has been estimated under the Government of India’s AMRUT (‘Atal Mission for

Rejuvenation and Urban Transformation’) Programme for the enhancement of Shillong’s septage as well as sewerage management systems for

the period of 2016-20.

Further, Shillong has been selected under the Smart Cities Mission of Government of India and the proposed amount for this mission is recorded

to be US$ 222.97 million which will be used for the development of Shillong.


SOCIAL INFRASTRUCTURE – EDUCATION

Meghalaya has a literacy rate of 74.43%; the male literacy rate is 76.0% and the female

literacy rate is 72.9%.

As per the state budget 2016-17, the state government allocated US$ 1.52 million for setting

up engineering colleges in Jowai & Ampati during 2015-16.

Further, an allocation of US$ 0.13 million has been made by the state government for

financing excursion as well as educational tours for government college students during 2015-

16.

Under 12th Five Year Plan, valid from 2012 to 2017, the state government proposed an outlay

of US$ 497.68 million for school education & literacy, higher education & training.

Under budget 2017-18, the state government proposed an allocation of US$ 141.22 million for

development of the education sector in the state.

In 2016, AYUSH Minister inaugurated the North Eastern Institute of Ayurveda & Homeopathy

(NEIAH) to provide healthcare to people in the North East & Sikkim. It has become the 2nd

Ayurvedic College in the North East Region with a homeopathy college & the only Central

Academic Institute of Ayush in Guwahati.

The Government of Meghalaya distributes laptops every year to meritorious students of Class

X & XII., in order to strengthen & enhance IT skills in the state.

Under Budget 2017-18, the government allocated a higher amount of US$ 141.22 million for

the education sector, as compared to the allocation of US$ 100.7 million during the previous

year.

In May 2017, the state government approved 100 per cent salary hike for 7,000 teachers in

government aided schools. According to the Press Trust of India, 2,450 lower primary

teachers, 2,532 upper primary teachers and 844 Hindi teachers will benefit from this decision.

Educational infrastructure (2014-15)

Total universities 13

Central universities 3

State universities 1

Private universities 9

Colleges 63

Government colleges 6

Medical colleges 1

Polytechnics 3

Engineering colleges 2

Secondary schools 783

Higher secondary schools 112

Primary schools 6,612

Source: Department of Education, Government of Meghalaya University Grants Commission, North East Resources Databank


SOCIAL INFRASTRUCTURE – HEALTH

NEIGRIHMS, which has been instituted to provide medical

education, has a 500 bed super-specialty hospital; expansion works

are underway.

As per budget 2016-17, the construction work of Tura Government

Medical College is expected to start after the successful approval of

Detailed Project Report (DPR) by the Ministry of Health & Family

Welfare. The land for another proposed Government Medical

College at Tura has been donated by the people and the same will

be taken up with the Government of India for funding support.

The state government has initiated the establishment at PPP mode

of medical college at the site of Reid Provisional Chest Hospital

located in Shillong.

In February 2017, under its Universal Immunisation Programme

(UIP), the government announced the expansion of rotavirus vaccine

in Meghalaya as well as in 4 other states, across India.

Under Budget 2017-18, the government allocated an amount of US$

65.33 million for Health & Family Welfare, as against US$ 69.91

million, during the previous year.

Health Infrastructure (As of February 2017)

Primary health centres 141

Sub-centres 603

Community health centres 40

District hospitals 21

Mobile medical units (MMU)/vehicles 21

Ayurveda hospitals 4

Ayurveda dispensaries 6

Homoeopathy hospitals 7

Homoeopathy dispensaries 6

Health indicators (2014-15)

Birth rate1 23.9

Death rate1 7.6

Infant mortality rate2 47

Source: : Sample Registration System (SRS) Bulletin September 2014 1Per thousand persons, 2Per thousand live births

To bring affordable and diagnostic healthcare within the reach of the

poor in Meghalaya, the government has allocated a sum of US$

1.52 million.

In 2016, the state of Meghalaya witnessed decline in the number of

HIV cases reported in the state.

In April 2017, the state government signed an MoU with New India

Assurance, a public general insurance company, to enhance its

phase-3 of Megha Health Insurance Scheme (MHIS-III) for about

three million people. MHIS-III includes the coverage of to US$

4164.80

Source: : Ministry of Health & Family Welfare, Central Bureau of Health Intelligence,

Government of India


CULTURAL INFRASTRUCTURE

Meghalaya has various tourist attractions such as caves, national parks, sanctuaries, sacred groves, waterfalls, lakes & rivers making it an ideal

tourism destination. Meghalaya sports a 18-hole natural golf course, which is a major sport & corporate attraction.

In December 2016, Nongkrem dance festival, the most ancient & grand festivals of the indigenous Khasi tribe, was organised at Khasi Hills in

Meghalaya. The festival is celebrated as Thanksgiving Day, rituals are performed to appease the all-powerful Goddess, 'Ka Blei Synshar' for a

rich bumper harvest & prosperity of the people.

Bara Bazar, Jail Road, G.S. Road, Police Bazar, Glory’s Plaza, Meghaloom, Nagaland Handloom & Handicrafts, Assam Emporium, India

Emporium, Khadi Gramodyog, Manipur Emporium, Tantuja & Purbashree are the key shopping areas in Meghalaya. Williamson Sangma State

Museum, Don Bosco Centre for Indigenous Cultures, Entomological Museum (Butterfly Museum) are the famous museums of Meghalaya

depicting its rich cultural heritage.

Under budget 2017-18, the state government proposed allocation of US$ 6.36 million for various art & cultural programs for the development,

augmentation & preservation of cultural heritage of the state. In April 2015, the state government laid the foundation of Shillong International

Centre for Performing Arts and Culture (SICPAC) & an amount of US$ 25.10 million was proposed for the construction of the centre. As per

budget 2016-17, construction work of this centre is under process.

As per budget 2017-18, the state government initiated the construction of show-cases, galleries, etc. & improvement of golf-course & golf-club

premises in Shillong. In addition, the Central Library of the state was also digitised & will be enhanced further with the deployment of new

technologies. Various mega events including the Northeast songs & dances, 18 degree festivals, CALM festival, cultural Panorama, etc. also took

place in the state during 2015-16.

With a view to accomplish the goal of endorsing sports & encouraging the youth of the state, the state government decided to continue providing

financial assistance across the sector. During 2015-2016, the state government also initiated Chief Minister’s Football Tournament, under the

Mission Football, in order to make football popular among the youth of the state.

Under the 12th Five Year Plan 2012-17, the state government proposed an outlay of US$ 29.86 million for preservation, documentation, research,

promotion, development & augmentation of arts & culture

The IHGF (Indian Handicrafts & Gifts Fair), has become the ideal stage for artisans participating from the North East region to show their talent in

merchandise made out of cane, bamboo, etc. Meghalaya is one of the key participants in the event.

In March 2017, the 41st Foundation Day of the IGRMS was marked by the inauguration of a 2-day national seminar emphasising on the need of

understanding cultural essence of the state & also welcomed a huge number of participants & joined together from Meghalaya & other states too.

Source: : Meghalaya State Portal, State Budget 2015-16


INDUSTRIAL INFRASTRUCTURE

Meghalaya has industrial estates at Shillong, Nongstoin, Mawlyndep, Tura, Williamnagar and Khliehtyrshi; an industrial area at Umiam; an EPIP

at Byrnihat; and a growth centre at Mendipathar.

District Industries Centres are functional under the Meghalaya Industrial Development Corporation in each district and are involved in industrial

infrastructure development of the district.

The state has constituted a single-window clearance agency for industrial investment approvals.

Techno-Economic Feasibility Reports (TEFRs) are available with the Meghalaya Industrial Development Corporation for poultry, agro-based

industry, fruit processing, paper-grade lime, alcohol from tapioca, calcium carbonate extraction, ceramic-glazed tile manufacturing, marble and tile

and meat processing.

In January 2015, the central government announced plans to incentivise airlines to increase air connectivity to the North-eastern states, and to

Bollywood to shoot films in the region.

As per budget 2017-18, under RIDF (Rural Infrastructure Development Fund), a total of 45 projects are under sanctioned with a cost of US$ 17.07

million for construction, improvement and conversion of Semi permanent timber bridges into RCC bridges in different parts of the State.

The Union Finance ministry had allocated a budget of US$135.81 million for the North Eastern Council (NEC) for FY16-17. As per the draft

normative allocation, Assam will get 25%, Arunachal Pradesh will be allocated 13%, while the states of Meghalaya, Nagaland, Mizoram, Manipur

and Tripura will get equal share of 11%t each and Sikkim will get 7%, from the budget allotted to NEC.

Source: : Meghalaya State Portal


KEY INDUSTRIES

The natural resources, policy incentives & infrastructure in the state favour investments in

the tourism, hydroelectric power, manufacturing & mining sectors.

The agriculture sector contributed around 11.5% to the state’s GSDP in 2014-15

Mineral, horticulture, electronics, IT, export oriented units and tourism have been identified

as the thrust sectors for industrial development. The state government is taking various

initiatives for the development of the small scale industries in the state. These include:

Improving infrastructure.

Implementation of schemes like PMEGP and MSE-CDP.

Skill development initiatives.

Increasing credit to the MSMEs

The Commerce & Industries Department of Meghalaya & its constituent unit, Meghalaya

Industrial Development Corporation, are jointly responsible for the development of

industrial infrastructure in the state

Under the 12th Five Year Plan, valid from 2012 to 2017, the state government proposed

an outlay of US$ 24.88 million for promoting 4000 micro, small & enterprises & generating

employment opportunities. The proposed outlay for village & small industries was US$

8.46 million & US$ 14.60 million was sanctioned for large & medium enterprises.

Several MoUs worth USD156.18 million have been signed between the Government & the

local entrepreneurs to boost investment in the 2-day Northeast Investors Summit at

Shiilong. The sectors being focussed are textiles, handlooms, handicrafts, sericulture,

apparels, garments, technical textiles in all the 8 states, with the “Act East” policy

Year IEMs filed

Proposed

investments

(in US$ million)

2010-11 14 287.49

2011-12 6 427.01

2012-13 3 299.77

2013-14 5 26.38

2014-15 1 9.62

2015-16 2 4.98

Source: Meghalaya Directorate of Industries, DIPP PMEGP - Prime Minister's Employment Generation Programme,

Key Industries in Meghalaya

Agriculture and food

processing

Hydroelectric

power

Floriculture Dairy and livestock

Horticulture Handloom and

handicrafts Mining

Cement Steel processing

Tourism Sericulture

Note: MSE-CDP - Micro and Small Enterprises – Cluster Development Programme


KEY INDUSTRIES – FLORICULTURE … (1/2)

Meghalaya is one of the leading north-eastern states in terms of production and supply of cut flowers to mainland consumer markets. The state’s

climate, particularly the areas near Shillong in East Khasi hills district, is well suited for cut flower production.

The existing industry is at a nascent stage and has the potential to be developed and promoted for export-oriented businesses.

During 2016-17, the total production of flowers was recorded to be 2.64 thousand tonnes.

Decorative plants such as dahlia, canna, gladiolus, begonia, tropaeolum, aster, polargonium, antirrhinum, crinum, celosia, kniphofia, impatiens,

chrysanthemum, petunias, pansy, calendula, sweet peas and salvia are found in abundance in the state.

Source: Meghalaya Directorate of Industries

Funds for promotion of floriculture in Meghalaya (US$ Thousand)

Year Funds allocated Funds released

2011-12 499.79 493.43

2012-13 381.02 336.27

2013-14 506.60 490.84

2014-15 76.97 76.97


KEY INDUSTRIES – FLORICULTURE … (2/2)

Area under production of cut flowers (in hectares)

35

60

0

10

20

30

40

50

60

70

200

9-

10

201

5-

16

CAGR 9.40%

Source: : Ministry of Agriculture

The Floriculture Development Scheme in the state is focused on

promoting and raising awareness about the sector.

This is done by providing incentives to farmers and motivating them

to grow traditional as well as non-traditional floral crops and

houseplants for commercial purposes.

The government of India started the “Technology Mission Scheme

on Horticulture” to promote and assist commercial floriculture in

Meghalaya.

During 2016-17, the area under production for cut flowers was

recorded to be 0.06 thousand hectares.

The state government is introducing various initiatives in order to

educate the farmers about the advantages of growing vegetables in

polyhouses.

New flower crops of heliconia, chrysanthemum, zanthedescia, iris,

gladioli, and foliage plants of leather leaf fern, Xanadu, goldenrod,

and Limonium have been introduced and are slowly gaining

acceptance in the farming community.

The state government has set up a model floriculture centre at the

district of Ri-Bhoi of the state, during 2015-16, for the development of

floriculture sector in the state.


KEY INDUSTRIES – MEDICINAL PLANTS

In 2015, in order to link the farmers with the herbal industry of the

state, the Meghalaya Basin Development Authority had signed a

memorandum of understanding with Central Institute of Medicinal &

Aromatic plants (CIMAP).

The important & recognised medicinal plants found & cultivated in

Meghalaya are Ipecac, Rauvolfia serpentina, Cinchona, Abromine,

Chaulmoogra Oil, Croton Oil, Eucalyptus, Castor Oil, Chiretta,

Solanum khasianum, Casearia vareca, Zanthoxylum armatum,

Hedyotis scandens, Paederia foetida, Salix alba, Anacardium

occidentale, Cinnamomum & Taxus baccata.

8 out of top 20 highly demanded & traded medicinal plants in India

are found in Meghalaya.

Under the 12th Five Year Plan (2012-2017), the state has been

assigned with development works including afforestation on

clan/community land through Joint Forest Management Committees

with a major push in the medicinal plants sector.

Year Funds allocated (US$ million) Funds released

(US$ million)

2014-15 0.38 0.22

2015-16 0.51 0.15

National AYUSH Mission (Centrally sponsored scheme)

National Mission of Medicinal Plants (NMMP)

(Centrally sponsored scheme)

Year Funds allocated (US$ million) Funds released

(US$ million)

2014-15 0.29 0.29


KEY INDUSTRIES – BAMBOO

The natural resources, policy incentives & infrastructure in the state favour investments in the tourism, hydroelectric power, manufacturing &

mining sectors.

The agriculture sector contributed around 11.5% to the state’s GSDP in 2014-15

Mineral, horticulture, electronics, IT, export oriented units and tourism have been identified as the thrust sectors for industrial development. The

state government is taking various initiatives for the development of the small scale industries in the state. These include:

Source:Ministry of Agriculture

Bamboo sector facts

Bamboo production area (hectares) under National

Bamboo Mission 5,574

Bamboo bearing area (Ha.) 4,79,300

Bamboo reserved forest area (Ha.) 9,49,600

Department of Agriculture & Cooperation (DAC), Ministry of

Agriculture is implementing National Agroforestry & Bamboo

Mission (NABM) scheme under Mission for Integrated Development

of Horticulture (MIDH) with the objective to utilize the potential of

bamboo crops and increase the area of cultivation. In 2014-15, US$

0.51 million was allocated for the implementation of the scheme in

Meghalaya, of which US$ 0.16 million was released.

Under the 12th Five Year Plan (2012-2017), US$ 0.84 million has

been allocated for the State Bamboo Mission, an undertaking to

conserve bamboo plantations in the state. In addition, the state

government allocated US$ 0.25 million under National Bamboo

Mission during 2015-16.

In 2016-17, a mass awareness programme on ‘Mass Plantation of

Bamboo’ was launched all over the State involving village

communities, societies, Village Employment Councils and

individuals.

As per the state budget 2017-18, Under Master Craftsman Training,

762 artisans were trained in trades like Cane and Bamboo, Wood

Crafts and other artistic works during 2016-17. Under the Scheme

Training Inside and Outside, 899 unemployed youth would be

trained during the current financial year.

Equivalent green weight by soundness of culms in

Meghalaya forests (2014-15) (in ‘000 MT)

6,334

1,157

7,491

- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

Gre

en C

ulm

s

Dry

Culm

s

To

tal


KEY INDUSTRIES – AGRICULTURE, HORTICULTURE

AND FOOD PROCESSING … (1/2)

Meghalaya has a climate that supports agricultural and horticultural

activities. The state offers potential for investment in these areas.

Turmeric produced in the state of Meghalaya is considered to be

one of the best in the world as it contains 7.5% of curcumin. The

state is focusing on developing water harvesting and distribution

infrastructure to increase the level of mechanisation in the

horticulture sector.

During 2015-16, the Government of India allocated US$ 4.64 million

under the horticulture mission for Northeast and Himalayan states

for the development of horticulture sector that including fruits,

vegetables, root and tuber crops, mushrooms, spices, flowers,

aromatic plants, coconut, cashew, cocoa and bamboo.

During 2016-17, the state produced 447.27 thousand tonnes of fruits

under an area of 37.97 thousand hectares. Similarly, 92.20

thousand tonnes of spices were produced in the state under an area

of 18.50 thousand hectares during 2016-17.

During 2007-2017, 13 projects under National Mission for Food

Processing and 12 projects under Technology Up-gradation/

Establishment and Modernization of Food Processing Industries

scheme, have been sanctioned by state government.

Year Area

(‘000 Ha)

Production

(‘000 MT)

Fruits 37.97 447.27

Vegetables 49.92 541.89

Spices 18.50 92.20

Plantation crops 25.5 32.93

Area and production of horticulture crops (2016-17)

Source: State Directorates of Horticulture


KEY INDUSTRIES – AGRICULTURE, HORTICULTURE

AND FOOD PROCESSING … (2/2)

Among various crops and value added products available in the

state, medicinal plants and bamboo processing are the major

potential areas of investment. Under the 12th Five Year Plan, US$

84.35 million has been allotted for agriculture and allied sectors.

In 2014-15, one project was sanctioned with an estimated sanctioned

amount of US$ 0.01 million. As of 2014-15, the central government

allocated US$ 390,000 for the implementation of National Mission on

Food Processing in Meghalaya. Meghalaya accounts for 1.5% share

in the total funds allocated to the country.

Around US$ 48 million has been allocated under the 12th Five Year

Plan (2012-2017) for the development of horticulture sector in

various segments including manure & fertilisers, plant protection,

training and infrastructure development.

Milk production in the state increased from 79 thousand tonnes in

2011-12 to 84 thousand tonnes in 2015-16. For the same time

period, the production of meat in the state increased from 37.1

thousand tonnes to 42 thousand tonnes. Egg production in the state

increased from 104.9 million units in 2013-14 to 106 million units in

2015-16.

Area expansion for various

horticulture crops under HMNEH and MIDH in Meghalaya

(Ha.)

5002 7194 8130 5953 4082 7562 7058

30681

2401

0

5000

10000

15000

20000

25000

30000

35000

824 979 1,028 1,035

0

200

400

600

800

1000

1200

2012-13 2013-14 2014-15 2015-161

Source: Mission for Integrated Development of Horticulture (MIDH) and Mission for Integrated Development of Horticulture (MIDH

Horticulture crop production in Meghalaya (‘000 tonnes)


KEY INDUSTRIES – HYDROELECTRIC POWER

As of June 2017, the state had an installed hydroelectric power

capacity of 387.19 MW. The state utilities had a total installed

capacity of 353.03 MW and 205.28 MW is contributed by the central

sector whereas private sector contributes mere 0.01 MW.

The state government is inviting investments in this area through the

PPP mode. Independent Power Producers (IPPs) are also being

invited to develop hydro projects in Meghalaya; this provides

immense potential for investment.

Hydroelectric power projects with a total capacity of 687 MW have

been proposed to be set up in Meghalaya.

The 2×20 MW New Umtru Hydro Electric Project (NUHEP) is set to

be commissioned within 2017-18 with the first unit expected to go

for trial run in the last week of March 2017. The other power projects

under implementation are the 3×7.5 MW Ganol HEP in West Garo

Hills and 1.5 MW Lakroh Small HEP in East Jaintia Hills.

Name of the project Installed capacity (MW)

Umangot 260

Umduna 57

Myntdu Leshka-II 60

Selim 170

Umangi Storage-I 54

Mawblei 140

Hydro projects in Meghalaya

Source: Central Electrical Authority Ministry of Power, Government of India

Month Installed capacity (MU)

January 2016 34

February 2016 32

March 2016 27

Month wise target of hydro generation for 2015-16


KEY INDUSTRIES – TOURISM

Meghalaya is richly endowed with flora, fauna, thick forests, ancient

forest groves, large rivers & grass fields – making it an attractive

tourism destination. Number of tourists visiting Meghalaya grew by

4.76%, which increased from 692,000 in 2013-14 to 759,000 in 2015-

16. In 2015-16, Meghalaya witnessed domestic tourist footfalls of

751,165, while the number of foreign visitors reached 8,072.

Caving is a major tourist attraction in the state, as most of the

deepest & longest caves in South Asia are located in the state. The

Shillong Golf Course is one of the oldest & best natural golf courses

in the world & is Asia’s 2nd 18-hole natural golf course.

Under budget 2017-18, the state government sanctioned US$ 7.94

million for development of the tourism sector in the state. Further, the

state government established 2 recreational parks in Mairang &

Marngar during the same period. To enhance skills and build

capacities of the local populace, 15 trainings programmes have been

conducted during 2016- 17 so far, in which 749 students were trained

in different Page 41 of 57 hospitality trades like food and beverages

services, housekeeping, food and beverages production, basic front

office, grooming and life skills in hospitality.

Moreover, the state government will emphasize on recognising &

enhancing new tourist destinations in the state during 2016-17.

Under the 12th Five Year Plan (2012-2017), US$ 25.3 million were

allocated for the development of the tourism sector in the state. The

various areas of focus include development of tourist spots,

development of wildlife tourism & adventure tourism.

Total tourist arrivals in Meghalaya (‘000)

404 462

555 596

657 672 686 692 725 759

0.02 0.02

0.02 0.02

0

100

200

300

400

500

600

700

800

Source: Ministry of Tourism, Government of India

In November 2016, with an aim to promote motor sports & tourism,

the state organized the 2nd edition of ‘Bilgaro Challenge 2016’.

In May 2017, a new species of cave-dwelling crabs was discovered

in Meghalaya’s natural caves. It is the first ever species of a cave

dwelling crab to be ever discovered in India.

In May 2017, the Shillong peak, known for its spectacular views,

was given the Better Holiday Award.


KEY INDUSTRIES – INFORMATION TECHNOLOGY

The IT policy of Meghalaya defines the IT penetration plan for various industries & public sector organisations.

With a high literacy rate, affordable cost, substantial English-speaking population, improved telecommunication connectivity & favourable climate,

Meghalaya is well-poised to serve the IT industry.

As per budget 2017-18, Digital Classrooms with the state-of-the-art facilities have been created in some schools in Meghalaya with the objective

to improve the education infrastructure and improve the quality of education. Besides this, computer hardware has been provided to a number of

schools across the State to promote computer education to the schools be at par with the rest of the country. Further, the state government has

also enabled the deployment of National Optical Fibre Network in the state for enhancing internet connectivity across villages.

Under budget 2017-18, the state government allocated US$ 9.6 million for the development of the IT sector. During 2015-16, the state

government came up with citizen centric services for citizens residing in the far flung areas. Across the district of East Khasi Hills, 5 e-district

services are already operating. These services were rolled out across other districts during 2016-17.

With the fast development of Software Technology Park of India at Lumjingshai, Shillong, various IT companies are expected to set up their

offices in the coming years.

Under the Chief Minister’s Digital Students Aid Programme, the Meghalaya government has decided to continue the distribution of laptops as a

reward to meritorious students along with digital content enabled tablets to higher secondary students of the state.

Under the 12th Five Year Plan (2012-2017), around US$ 14.68 million has been allocated for development of the sector through development of

IT infrastructure, development of e-governance & other promotional activities. Of the total proposed allocation, 9.72 per cent was proposed for

development of IT infrastructure, 29.38 per cent for HR development & training with international certification & the rest for development of e-

governance, promotional activities, etc. In addition, the state government launched various new schemes for providing incentives to

entrepreneurs, research & development in the IT domain, extension of SWAN (State Wide Area Network) horizontal connectivity up to the last

mile, technological & financial support to ICT promotional activities, etc.

Source: : : Ministry of Tourism, Government of India IT - Information Technology, STPI - Software Technology Parks of India


KEY INDUSTRIES – SERICULTURE

Mulberry, muga and eri cocoons are cultivated in Meghalaya.

Sericulture has predominantly remained a cottage industry and the state government is

taking proactive steps in training people, reaching out to the market and providing

technical support.

Major initiatives taken by the state government for the sector’s development are improving

infrastructure.

Creation of nursery for production of quality planting material and seeds as well as

area expansion under mulberry plantation.

Technology interventions to improve production and productivity of plantations and

upgrading existing production units.

Capacity building, including exposure visits.

Entrepreneurship development and value chain development in the sericulture

sector.

Organic farming is playing a major role in sustaining the health and fertility of soil. During

2015-16, raw silk production in the state was recorded to be 857 MT.

Under the 12th Five Year Plan (2012-2017), US$ 11.2 million has been allocated for

various segments including development of mulberry, muga and eri silk industry,

promotion & upgradation of sericulture training programme, infrastructure development

support and research & development support.

Under budget 2017-18, the state government proposed an outlay of US$ 5.77 million for

sericulture and weaving sectors in Meghalaya.

Year Sanctioned

2011-12 1.37

2012-13 1.23

2013-14 1.77

2014-15 0.94

2015-16 1.08

Funds allocate and released for promotion of

sericulture in Meghalaya (US$ million)

Year Silk production (MT)

2012-13 517

2013-14 644

2014-15 656

2015-16(1)

857

Source: Ministry of Textiles

Source: Central Silk Board 1Provisional


KEY INDUSTRIES – HANDLOOM AND HANDICRAFTS

Meghalaya has an established tradition of high-quality weaving.

Around 15,900 families are involved in handloom activities in the

state. There are eight handloom production centres, 24 handloom

demonstration-cum-production centres, 24 weaving training centres

and a state-level handloom training institute (Mendipathar, East Garo

Hills) in the state.

As per budget 2016-17, in the Garo and Khasi Hills of the state, 75

handloom clusters were organized during 2015-16.

Under the North Eastern Region Textile Promotion Schemes

(NERTPS) for both sericulture and handloom sectors, funds to

benefit 1,000 sericulture farmers under the Intensive Bivoltine

Sericulture Development Project (IBSDP) and 2,300 sericulture

farmers for Integrated Sericulture Development Project (ISDP),

including 72 handloom clusters, have already been approved.

Under the Comprehensive Handloom Development Scheme, the

central government is helping the handloom manufacturers in setting

up of a yarn depot for the production of the handloom products and

product development and diversification centres.

Around US$ 11 million has been allocated under the 12th Five Year

Plan (2012-2017) for various on-going schemes such as integrated

development of the silk weaving technology programme,

infrastructural development support of handloom industries and

promotion & upgradation of handloom training programme.

As of April 2017, Khadi and Village Industries Commission (KVIC)

plans to set up 7-8 khadi centres in Meghalaya in this year. Each

centre is estimated to cost around US$ 13,368.66, and the annual

production is expected to be around US$ 24,000.

Meghalaya khadi production value

(in US$ thousand)

14.22

4.26 4.95

9.47 8.69

15.53 12.81

15.08

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

2008-092009-102010-112011-122012-132013-142014-152015-16

18.41 16.59 18.25 20.82

0.00

5.00

10.00

15.00

20.00

25.00

2012-13 2013-14 2014-15 2015-161

Source: Ministry of Micro, Small & Medium Enterprises

Meghalaya khadi sales value

(in US$ thousand)



Meghalaya limestone production (‘000 MT)

4,8

25

4,5

43

4,3

64

4,3

45

4,100

4,200

4,300

4,400

4,500

4,600

4,700

4,800

4,900

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

Source: : Department Of Mining & Geology, Government of Meghalaya

In 2014-15, Meghalaya accounted for 576 million tonnes of coal,

15,100 million tonnes of limestone, 12 million tonnes of fire clay, 97

million tonnes of lithomargic clay, 1.45 million tonnes of bauxite,

0.015 million tonnes of phosphate rocks, 0.045 million tonnes of

sillimanite, 50 million cubic metres of granite and substantial

reserves of quartz, feldspar, gypsum and uranium.

An extensive bed of limestone occurs in the southern part of the

state from Jaintia Hills in the East and Garo Hills in the West. Large

deposits of good quality Lithomargic clay have been found in Garo

Hills. The mining industry is emerging in Meghalaya; most of the coal

and stones are being exported to Bangladesh. A number of cement

factories are being either planned or set up, owing to the rich mineral

content of the state.

In August 2015, the state government passed a resolution seeking

the President’s approval on exempting Meghalaya from the Mines

and Mineral (Development and Regulation) Act, 1957. As per budget

2017-18, the matters are under active consideration of the

Government of India.

Under State Budget 2017-18, US$ 0.57 million are allocated for the

development of mining sector in the state.

The prominent coalfields of the state are West Darrangiri, Siju,

Pendengru-Balpakram in the South Garo Hills district; Borsora

Langrin and Shallang in the West Khasi Hills district; East Darrangiri

partly in West Khasi Hills and partly in East Garo Hills; Mawlong-

Shella and Sohra-Cherrapunjee in the East Khasi Hills district and

Bapung-Sutnga in the Jaintia Hills district. Under the 12th Five Year

Plan 2012-17, the state government proposed allocation of US$ 3.98

million for mining and geology, wherein US$ 0.39 million was

proposed for mineral exploration, US$ 0.41 million for research &

development.


KEY INDUSTRIES – MINERALS AND MINING … (2/3)

In 2014-15, coal reserves in the state stood at around 576 million

tonnes with 0.19 per cent share of the total coal reserves of India.

In 2014-15, geochemical mapping was conducted in 2 districts of

Meghalaya, namely, Ri- Bhoi & Jaintia Hills.

In 2014-15, the Ministry of Mines conducted an assessment of

limestone reserves of Mawlong-Ishamati Block of Shella-Bholaganj

belt, East Khasi Hills District.

In 2014-15, the Ministry of Mines investigated the presence of

lateritic bauxite around Rambrai area of West Khasi Hills District.

In September 2015, the state government submitted mining

guidelines & mining policy to the National Green Tribunal. The policy

is the same as Meghalaya Mines & Mineral Policy 2012 with

additional guidelines under NGT directives

Year Reserve (million tonnes)

2009-10 507.7

2010-11 525.9

2011-12 543.1

2012-13 557.6

2013-14 567.9

2014-15 576.4

Coal reserves in Meghalaya

Source: Ministry of Mines, Government of India



Mineral Location

Limestone Cherrapunjee, Mawlong, Ishamati,Shella, Komorrah, Borsora, Bagli in Khasi Hills District, Lakadong, Lumshonong,

Nongkhlieh in Jaintia Hills District, Darrang Era-Aning, Siju and Chokpot in Garo Hills District

Coal Langrin and East Darrangiri in Khasi Hills District, Bapung in Jaintia Hills District and West Darranggiri in Garo Hills

District

Clay (Lithomargic) Cherrapunjee and Mahadek in Khasi Hills District, Tongseng in Jaintia Hills District, Nangwalbibra and Rongrenggiri in

Garo Hills District

Granite Nongpoh in Ri-Bhoi, Mylliem and Mawkyrwat in Khasi Hills District, Rongjeng in East Garo Hills District

Kaolin Mawphlang, Smit, Laitlyngkot in Khasi Hills District, Thadlaskein, Mulieh Shangpung, Mynsngat in Jaintia Hills District

and Darugiri in Garo Hills District

Iron Ore West Khasi Hills and East Garo Hills District

Glass Sand Laitryngew, Umstew and Kreit in Khasi hills, Tura in Garo Hills District

Feldspar Bonsamgiri and Rombhagiri in East Garo Hills District

Silimanite Sonapahar in West Khasi Hills District

Bauxite Sung valley in Jaintia Hills District

Rock Phosphate Sung valley in Jaintia Hills District



SINGLE-WINDOW CLEARANCE MECHANISM

With a view to facilitate and expedite various clearances and government approvals required by entrepreneurs as well as to promote investments

in the state, the Government of Meghalaya has formed a committee to act as a single-window agency for all investments in the state.

Some of the terms of reference for the committee include:

To facilitate the expeditious issue of all clearance/approvals required from various departments and agencies of the state government

to any entrepreneur applying for the same and to assist in obtaining clearance from other state bodies/organisations.

To assist entrepreneurs in obtaining various clearances and approvals from the central government and its agencies.

To take up with finacial institutions/commercial banks, wherever required, for expediting sanction and disbursement of loans/working

capital to prospective entrepreneurs.

To facilitate and expedite on land matters for setting up industries.

To facilitate local entrepreneurs in having an interface with industrial association, central government, boards, and authorities, among

others.

To attend to all enquiries from all prospective entrepreneurs relating to the law, procedures, practices etc governing investments in the

state.

To continuously review the various clearance and approvals required for investment in the state by entrepreneurs, with a view to

simplify them as also to minimise procedural constraints to ensure flow of investments in the state.

Source: Single Window Agency


KEY APPROVALS REQUIRED

Approvals and clearances required Department

Incorporation of Company Registrar of Companies

Registration, Industrial Entrepreneurs Memorandum, Industrial Licenses

Industries Department of Meghalaya Permission for Land Use

Allotment of Land

Site Environmental Approval Meghalaya Pollution Control Board

No-objection Certificate and Consent Under Water and Pollution Control Act

Registration Under States Sales Tax Act and Central and State Excise Act Excise Department

Commercial Taxes

Sanction of Power

Meghalaya Energy Corporation Limited Power Feasibility

Power Connection

Approval for Construction Activity and Building Plan Public Works Department

Water and Sewerage Clearance Public Health and Engineering Department

Water Connection


COST OF DOING BUSINESS IN MEGHALAYA

Cost parameter Cost estimate Source

Cost of land (per acre) US$ 75,000 to US$ 180,000 (Shillong) Industry sources

Hotel cost (per room per night) US$ 25 to US$ 48 State Tourism website

Office space rent (2,000 sq ft) US$ 300 to US$ 800 per month Industry sources

Residential space rent

(2,000 sq ft house) US$ 75 to US$ 300 per month Industry sources

Fixed power cost (per kWh per

month)

Domestic: US 74.65 cents

Commercial: Average US 149.3 cents

Industrial: Average US 149.3 cents

Central Electricity Authority

Labour cost (minimum wages

per day) US$ 1.65 to 2.32

Ministry of Labour and Employment, Government of India,

Wage rates for September 2013



Agency Contact Information

Ministry of Development of North Eastern Region

258, 1st Floor, Vigyan Bhavan-Annexe New Delhi-110011

Phone: 91-11-2302 2401, 2302 2400 Fax: 91-11-2306 2754

Website: www.mdoner.gov.in

Commerce & Industries Department

Director of Commerce & Industries, Administrative Building, Lower Lachumiere

Shillong-793 001 East-Khasi Hills District, Meghalaya

E-mail: [email protected] Website: http://megindustry.gov.in

Meghalaya Energy Corporation Limited

Meghalaya Energy Corporation Limited Lum Jingshai, Short Round Road

Shillong-793001 Meghalaya, India

Phone: 91-364 2590610/ 2590742/ 2590710/ 2591843 Fax: 91-364-2590355

E-mail: [email protected] Website: www.meseb.nic.in



STATE ACTS & POLICIES … (1/2)

The Meghalaya

Appropriation (No. I) Act,

2014

To authorize appropriation and payment from the consolidated fund of the state

To supplement the existing power production and generate employment opportunities.

To identify areas in Meghalaya that have potential in biomass power for setting up off-grid plants.

Renewable Energy Policy

2013 (Proposed)

To facilitate investments in new sectors across the state and thus ensure accelerated and sustained growth.

To attract, facilitate and promote wider expectations and high end investment.

Meghalaya Industrial

and Investment

Promotion Policy 2012

Objectives

Water Act 2012

To provide for water rights and obligations; conservation, control, management and use of water resources and

supply; constitution of water and sewerage authorities; facilitate devolution and decentralisation of management.

To facilitate systematic, scientific and planned utilisation of mineral resources and to streamline mineral-based

development of the state.

Meghalaya Mines and

Minerals Policy 2012

The mission for youth development in the state is to create an enabling environment for youth to realise their rights,

potentials and opportunities in the state and making them self-reliant, empowered and active citizens. State Youth Policy 2012

Read more

Read more

Read more

Read more

Read more

Read more

http://meglaw.gov.in/acts/2014.pdf

http://www.energynext.in/meghalaya-to-have-re-policy-soon-cm/

http://megindustry.gov.in/MIIPP_2012.pdf

http://megwaterresources.gov.in/pdf/Meghalaya_Water_Act_2011_draft.pdf

http://www.indiawaterportal.org/sites/indiawaterportal.org/files/meghalaya_mines_and_minerals_policy_2012.pdf

http://megsports.gov.in/documents/Draft_State_Youth_Policy_2012.pdf


STATE ACTS & POLICIES … (2/2)

Meghalaya Tourism

Policy 2011

To position Meghalaya as a preferred tourist destination by taking advantage of its rich cultural heritage and natural

beauty.

To promote the Northeast region as an attractive investment destination through various concessions and

incentives.

North East Industrial and

Investment Promotion

Policy (NEIIPP) 2007

To create wealth, generate employment and bring in IT-led economic growth.

To make information technology as a tool for attaining all round development in the state. IT Policy 2004

Objectives

To create wealth, generate employment and bring in IT-led economic growth.

To make information technology as a tool for attaining all round development in the state. Industrial Policy 1997

Read more

Read more

Read more

Read more

http://megtourism.gov.in/pdf/Tourism_Policy.pdf

http://investinmanipur.nic.in/NEIIPP-2007-Information Booklet.pdf

http://ditmeghalaya.gov.in/policy/IT Policy_2004.pdf

http://megindustry.gov.in/objectives.htmRead more

http://megindustry.gov.in/objectives.htm


EXCHANGE RATES

Source: Reserve Bank of India

Exchange rates (Fiscal Year)

Year INR equivalent of one US$

2004-05 44.81

2005-06 44.14

2006-07 45.14

2007-08 40.27

2008-09 46.14

2009-10 47.42

2010-11 45.62

2011-12 46.88

2012-13 54.31

2013-14 60.28

2014-15 60.28

2015-16 65.46

2016-17 67.09

Q1 2017-18 64.46


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This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the

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