Meghalaya is one of the north eastern States of India with its Capital at Shillong. The Land area of Meghalaya is about 22,429 Sq. Km. with an estimated Population of 1.8 million. The Per Capita Income is Rs. 6,136 and the Inflation Rate is 9.1%. The state has a relatively good local administration and a huge surplus of power and one of the lowest power tariffs in the country. The main drawbacks of this state are the poor road and telecommunications connections with the rest of the country. Forest based industries, agro processing, meat processing, power, minerals and electronics are on the priority list of the State.
Incentives:
Investment subsidy of 15% (up to Rs 350,000) of fixed assets for small-scale units
Investment subsidy of 30% of fixed assets (up to Rs 2,000,000) for medium and large-scale industries
An additional 5% capital investment subsidy (up to Rs 500,000) for 100% EOUs
90% Transport Subsidy for procurement of raw materials up to the Siliguri rail-head
Power subsidy of 30% on loads up to 2.5 MW for medium and large-scale units
5-year income tax holiday for new industrial units set up in the Northeast
Sales tax exemption (up to 9 years) on finished goods for small scale units
20% rebate on the cost of training local tribals, provided the trainee is employed by the unit
Industrial policy (1997)
Objectives
With a view to take advantage of the liberalised economic scenario in the country and 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:-
Generate employment opportunities for the local people in the industries and allied sectors.
Develop human resources and bring about improvements about the quality of life by promoting industries in sectors where the state has comparative advantage.
Achieve a balanced and growth oriented development covering the entire state through promotion of village and small scale industries.
Create a favourable 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.
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.
Provide preference to local entrepreneurship in setting up of large, medium and small scale units.
Promote local interests through joint ventures with external investors so as to facilitate technology transfer and capital flow by a package of suitable incentives.
Encourage need-based development of local entrepreneural skills through intensive motivation and training programmes at district, sub-divisional and block levels.
Provide guidance to prospective entrepreneurs by building up a data bank of project-profiles and other connected information.
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.
Promote the setting up of ancillary units for catering to the requirements of large and medium scale industries.
Identify sick units that can be made viable and provide a comprehensive package of assistance for their revival.
Promote and encourage high-value, low volume products, in view of the transportation-bottlenecks in the State.
Encourage setting up of Export-oriented, Agro-based, Mineral-based, Horticultural based and Electronic units as thrust area.
