Our Correspondent
Kohima | March 13
The Nagaland Vision 2030 has made an observation that clear industrial policy aimed at creating the necessary enabling environment both in terms of incentive and providing the necessary infrastructure is crucial.
“The first draft Industrial Policy was made in 1989 that was then reviewed in 2000 and subsequently revised in 2004. But policies have not yielded the desired result,” the Vision document said in the chapter on way forward. Apart from the absence of a robust implementation and monitoring mechanism, the basic issue was the lack of resources to implement the policy, it stated, adding side by side, the aspect of co-ordination or convergence amongst the departments was lacking and there were no linkages with the departments providing infrastructure such as the roads & bridges, power, education sector and the employment department.
The Government of India had approved a package of fiscal incentives and other concessions for the North East Region – the North East Industrial and Investment Promotion Policy 2007 – covering all the eight states. But, apparently this is under review for discontinuation.
“Sadly Nagaland could not avail anything out of this policy basically due to the presence of a large number of bogus units. Nothing much was eventually sanctioned for Nagaland although other NE states benefitted substantially from this especially Meghalaya ad Assam,” the document further noted. The unusually high registration of Entrepreneur Memorandum (EM) during 2008-09, it added, can be attributed to this factor.
“Therefore, there is an urgent need to shift away people from the subsidy culture,” it observed.
It further maintained that the revised State Industrial Policy 2016 to be re-termed as Nagaland Trade, Investment and Industrial Policy (N-TIIP), should envisage a strategic approach with a more holistic developmental framework. The policy is expected to promote the ‘Cluster Approach’ in the form of industrial zones that will facilitate concentration of the required infrastructure such as roads, other connectivity, power, water and other amenities necessary for industries to thrive. Meanwhile, the document suggested that the ‘Cluster Approach’ should also be intrinsically associated with the ‘Integrated Intensive Inclusive Agriculture Clusters.’
“The integrated cluster development approach should also be adopted for promotion and development of the handicraft and handloom sectors incorporating the SHG concept, there should be a policy for financing of industries for which the creation or strengthening of industry friendly financial institutions can be a focus, venture capital could also be created to assist local entrepreneurs for startup capital requirements by strengthening the NIDC and the Small Industries Finance Corporation, Nagaland State Cooperative Bank and Nagaland Rural Bank. There should be better coordination with the banks and the aspect of review of the land tenure system in identified zones or clusters will have to be put into place,” it was added.
Stressing that it will not be possible to promote industries in the absence of technically qualified or skilled personnel who can handle sophisticated equipments, tools and machineries, the Vision document pointed out the State at present does not have sufficient qualified and skilled workforce to support any type of industry as nurturing such labour supply has not been given adequate attention.
Reforming and restructuring of the industries department was also termed as of prime importance. The department has to shift its orientation from micro and the unorganized sector to promotion of small and medium enterprises or the industry sector, it emphasised.
“The subsidy culture which has been the driving force for activities of the department should be done away with and promotion of entrepreneurship for emergence of dynamic industries should be inculcated,” the Vision document stated.
It also felt that the Nagaland Industrial Development Corporation (NIDC), Nagaland Handloom and Handicraft Development Corporation (NHHDC), and Nagaland State Minister Development Corporation (NSMDC) should be revamped, restructured and made to function in a dynamic manner.
The document also stressed on the need to set up State Tourism Development Corporation to develop tourism sector as an industry. “For the entire exercise, creation of congenial, peaceful, social and political environment in investment in the state is a pre-requisite,” it observed.
