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CHAPTER 6
PROSPECTS FOR SMALL SCALE INDUSTRIES
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Contents 6.1. Introduction 6.2. Government Policy Initiatives 6.3. Potential Industries in Assam Hills 6.3.1. Agro-based industries 6.3.2. Forest-based industries 6.3.3. Mineral-based industries 6.3.4. Engineering based industry 6.3.5. Textile based industries 6.3.6. Livestock based industries 6.3.7. Service-based Industry 6.3.8. Miscellaneo us industries 6.4. Plantation Industry 6.5. Tourism Industry 6.6. Conclusion
Page No. 198-199 199-200 200-224
224-225 225-226 226-227
6.1. INTRODUCTION
The Northeast Region offers good scope for small industry development
based on its resources, demand, environment and skill. The region is known for
its resource endowment. The existing industrial activities are based on the
agriculture, horticulture, forest and mineral resources and also on traditional
skill and craftsmanship of the people (HE, Vision 2001). The scope of large
scale industries in the region has been limited particularly in the hilly region;
hence the only alternative is the growth of SSI sector. This sector has vast
potential in terms of employment, output, export promotion, expansion of base
for indigenous entrepreneurship and dispersal of industries and entrepreneurship
skills in rural as well as backward areas (Desai, 2003).
In the foregoing chapters, a comprehensive discussion has been made
pertaining to the resource endowments of Assam Hills and the growth and
development of small scale enterprises. This chapter attempts to identify suitable
industries which have scope for development in this hilly region of the State.
The industrial development in Assam Hills has not taken place to the desired
extent due to inadequate infrastructure facilities, lack of initiation and
entrepreneurship and unfavourable socio-economic conditions etc. Exploitation
of natural resources, optimum use of available resources and exploitation of new
markets for the products a number of small scale industries based on agricultural
products, forests based products, dairy products can be established in Assam
Hills. Increase in the urban population day-by-day and the message of using
modem goods reaching the remote villages through effective
media/communication at present, a number of demand based units such as
bakery products, cattle feed, readymade garments, stationery items can be
established in both the hill districts. As the construction activity is increasing
constantly manufacturing of bricks, wooden furniture, steel furniture, fabrication
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items, electrical appliances etc. is having a vast scope in both the hill districts.
The main objective of the study is to identify the possibility for setting up
of more industries in small-scale sector. The country accorded high priority to
this sector on account of its employment potential, comparatively less
requirement of capital, short gestation period, use of traditional skill, useful links
with medium and large scale sector, wide geographical dispersal, promotion of
balanced regional development, etc. The sustained growth of SSI sector in last 5
decades has been made possible by the special attention bestowed by the policy
makers. This has helped increase rural industrialization, per capita income and
the standard of living of the rural population.
6.2. GOVERNMENT POLICY INITIATIVES
The Central and the State Governments has been formulating and
modifying appropriate policies and progrmmes from time to time to create the
necessary industrial climate and to improve the technical knowledge and the
entrepreneurial skills of the people. The ongoing policy measures of the
Government of Assam for growth of small-scale enterprises in the State as well
as the hilly and backward areas may rotate the wheel from traditional agrarian to
modern industrial economy in the region.
First, Industrial Policies of Assam since the starts of liberalization process
in 1991 aimed to provide effective thrust for expeditious promotion and growth
of all industries through new package of incentives with a view to creating a
strong industrial base and employment opportunities in various directions.
Secondly, steps are being taken to develop infrastructural facilities
adequately, which will pave the way for industrial development in the hilly and
backward region of the State. The announcement of the comprehensive
economic package for the development of the Northeast involving Rs. 6,100
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crore by the Central Government for a number of new and ongoing projects will
definitely improve the infrastructural status of the region.
Thirdly, the ongoing process of economic reforms has also brightened the
prospect of development of both small, medium and large scale industries
considering the huge development potential of the State. In a capital scarce
economy like Assam, the development of small scale industries will be quite
suitable.
6.3. POTENTIAL INDUSTRIES IN ASSAM HILLS
According to the Report on Industrial Dispersal of the NCDBA (Varma,
1996), the type of industries that can be promoted in the North Eastern Region
fall broadly within the following categories:
(i) Major raw material based industries, which in the northeast would be
mainly paper, cement and petrochemicals,
(ii) Industries to supply local demands, where the scale of local requirement is
large enough to sustain an economically viable unit,
(iii) Other Small Industries including agro-processing like fruit canning, meat
processing, timber processing etc.
The analysis of local resources available shows the potentiality for developing
many resource-based as well as demand-based Small-scale industries in Assam
Hills. The demand-based industries based on general consumption can be
considered and also based on the demand from the government departments.
There are many commodities of daily use, which are being imported from other
parts of the country. Many of these items can be produced inside the region with
the existing skill and manpower under small-scale industrial sector. The
government departments and public sector enterprises, military and Para military
departments are big buyers of many of the products produced by the tiny and
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small entrepreneurs. In fact, many of the existing tiny and small entrepreneurs of
the region depend heavily on the purchase by government departments. The
existing resources, the demand, the pollution-free environment and the skill and
craftsmanship of the people of the region offer opportunities for various types of
small industries.
In view of the existence of various resources endowments in Assam Hills,
its industrial status and performance and various problems of industrial
development discussed in the preceding chapters, let us now look into the fitness
of the context to curve out the prospects of industrial development particularly
small-scale industries whatsoever the Hills region has.
Many Resource-cum-Demand based industries may be developed
depending upon its natural endowments and topographical-climatic conditions
peculiar to the Hill areas. The Department of Industries and Commerce, Govt, of
Assam Has suggested some potential industries for Assam Hills. (Appendix G).
There are various industries that have tremendous growth potential in Assam
Hills can conveniently are located on the basis of local skill, the raw-material
and the demand for the product. These industries have been classified into two
categories, viz, (a) those which are already existing in the region, but have
further potential for expansion; and (b) those are non-existent, but posses
enough potential for their growth and development in the region. Following
resource-cum-demand based industries can be set up and developed in Assam
Hills.
6.3.1. AGRO-BASED INDUSTRIES
The economy of Assam Hills has been predominantly agriculture oriented
since time immemorial. Agro industries by using locally available raw materials
and indigenous know-how open opportunities for educated skilled and
uneducated manpower. The most important aspect of agro industrial
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development is the development of the tertiary sector of the economy i.e.
transport sector, communication and banking in rural areas. The availability of
paddy husk, rice bran, straw, fruits and vegetables etc. in the hilly region offer
tremendous scope for setting up of small-scale agro based industries. In Assam
Hills, there is great scope for developing effective linkages between SSI and
agriculture. The strategy for the district suggested high priority for development
of agriculture and village industries (DICC, Haflong). There is great scope for
manufacturing and service sector units of small and medium size in the
agricultural sector (Sharma, 1998). The Govt, of Assam provided additional
State Capital Investment Subsidy of 5% subject to a ceiling of Rs.5 lakhs for
Agro & Food processing industries in the Industrial policy of 1997. Besides,
incentive also provided to the extent of 50% of the cost payable for getting FPO
license/AGMARX/Trade Mark for the products for food processing industries
subject to a maximum ceiling of Rs.l lakh.
Agricultural products of Assam Hills comprises of paddy, maize, mustard
and oilseeds, cotton, sugar cane, ginger, turmeric and such other crops.
Therefore, it is but natural that agro-based industries should receive the top most
priority with a view to achieve the goal of small-scale units for mass production
of goods. In Assam Hills total area under oil seeds and horticultural crops is
22.59 and 57.04 thousand hectares respectively. At present Rice mills,
Flourmills, Gur making, spice grinding, bakery are the important Agro-based
industries of the Hills region. The development of horticulture and plantations
can assist in the growth of small and medium agro-based industries. Some
horticulture-based units in Assam Hills will include food processing, mushroom
cultivation and processing. All these products have a good market not only in
the hills areas of the State but also in the neighbouring States. Agro-based
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industrial units like ginger, Citronella oil extraction, food and fruit preservation
units have been identified as having potentials in Assam Hills.
The following agro-based industries are identified and recommended by
Development Commissioner, Small Scale Industries, Govt, of India for Assam
Hills- (1) Fruit Preservation (2) Ginger Dehydration (3) Ginger candy (4) Ginger
Powder "(5) Gums from vegetable trees (6) Bakery/Mechanized (7) Dalmut
making (8) Honey (Bee-keeping) (9) Pineapple juice and (10) Ice and Ice
Candy. Besides these, some other agro-based industries can also be developed
depending upon the available raw materials, such as, Pine apple fiber extraction,
Squashes, pickles. Jams and jellies making, Spices grindings. Oil crushing,
Cheera making. Mini Rice mill. Cotton ginning etc. The following agro-based
units have the potentiality in Assam Hills.
7. Food Processing Industry
Assam Hills has been identified as an area having very good scope for the
development of food processing industries. Food processing industrial sector is
likely to grow and is expected to be an important segment of the industrial
activity. Raw materials necessary for food processing and other agro-based
industries are expected to be available from the internal source in the years to
come. There has been a great deal of emphasis on food processing industries in
Assam Hills because of its congenial agro-climatic condidon for production of
agro-horticultural crops. A number of units have already come up in the food-
processing sector. Besides the food crops, there are fruit crops, vegetable and
tuber crops. Fruit crops like pineapple, orange, banana, guava, jackfruits and
many local varieties of fruits are grown in Assam Hills. Among the vegetable
crops, tuber crops, potato, sweet potato, tapioca are grown. Principal spices
grown are ginger, turmeric, chilies and black pepper. They go waste during the
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production season due to lack of storage and processing facilities and also for
inadequate transport facilities. Promotion of food processing industries in the
small scale sector will not only check the wastage of these valuable resources
and add value to them, but will also encourage the growers to grow more fruits.
2. Maize (Corn) Flakes (Makka)
Most of the production of maize of Assam Hills is consumed locally and
nearby districts as food item. However, the latest development in processed food
culture requires sum process before consumption. In Assam Hills about 9
thousand tones of maize is produced annually. Maize contains large quantities of
starch and there is good potential for starch processing units in the districts.
Corn flakes are used in fried form in the snacks. Generally in North India people
prefer this type of snacks in break fast with tea/coffee. Another form of use is
that further processed nutrient enriched corn flakes for direct consumption with
milk for breakfast. Almost all the people like this type of eatable items always
and hence the product is having potential market in the region. Therefore, few
units with the capacity of 400 MT per annum, manufacturing Corn flakes could
be set up in the two hill districts.
3. Fruit Canning and Preservation Unit
Due to favourable climatic condition and the altitude the fruit crops like
orange, lemon, pineapple, banana. Pomegranate etc are found to have been
successful in Assam Hills. Both the hill districts cover a huge area under fruit
cultivation. Total area under fruit and vegetable cultivation in Assam Hills is
16,807 hectares. The extension and upgradation of horticulture will create some
further scope for development provided the markets for processed fruits are
identified and developed. The Department of Agriculture has developed 16
numbers of Progeny orchards in different places in the two hill districts with the
objective of raising quality planting materials like Orange seedlings, Assam-
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lemon-layers, Litchi layers, pears cutting, Areca nut seedlings, coconut
seedlings, banana suckers, Papaya, black pepper cutting etc. for distribution
amongst the cultivators through departmental programme. The fruit preservation
units of AHSIDC at Howaipur and Jatinga have been closed from last several
years due to financial problem and mismanagement. Sufficient quantities of hard
and soft flesh fruits go waste or perish due to over ripening, non-availability of
transport and storage facilities. But in view of the abundant production of fruit
crops there is great potentiality of fruit preservation units in the two Hills
districts. Jatinga, Harangajao is known for oranges and pineapple. Jackfruits,
guava, peach, plum pears, mango and litchi are also grown all over the Hills
region. Area under fruits cultivation in Assam Hills is given below-
Table 6.1
Area and Production of Fruit crops in Assam Hills 2001-02 Fruits
Orange Pineapple Banana Papaya
Karbi Area(ha)
881 1,723 1,687 485
Anglong Production
(tones) 8,780
26,290 22,634 7,518
N.C Area(ha)
1,705 1,770 537 308
. Hills Production
(tones) 17,391 26,001 7,786 4,696
Assam Hills Area(ha)
2,585 3,493 2,224 793
Production (tones) 26.171 48,236 30,420 12,214
Sources- Website K. Anglong & Statistical Hand Book, N.C. Hills
In order to raise the marketability of these fruit crops fruit preservation
centers should be available in the producing areas of Assam Hills. Once
preserved these fruits could last longer, thus avoiding the waste and rejection
and thereby improving the financial condition of the growers. The establishment
of fruit processing and preservation units under small-scale sector in Assam
Hills will automatically help the growth of other ancillary industries, such as the
manufacture of containers, cartons, labels, packing cases and will thus create
employment opportunities for a large number of hills people. It is recommended
that static demonstration-cum-training centers for fruit preservation should be
established at Diphu and Haflong. These demonstration centers can create
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awareness and consciousness about fruit preservation among the local
population, which incidentally shall help the food conserving policy as well.
4. Papaya based products
Papaya is a delicious and wholesome fruit, rich in sugars and digestive
enzymes. It, is a good source of Vitamin A, and Vitamin C. Assam Hills is one
of the leading producers of papaya in the State. Area under Papaya cultivation in
Assam Hills was 793 hectares and Annual production of papaya in the two hill
districts was about 12,214 Tones in 2001-02. Most of the production is
consumed locally and nearby districts as food item. There is no papaya-based
industry in the entire hill region. Based on the availability of papaya, there is
scope for setting up of the Papaya based industries in Assam Hills like Papaya
jelly. Papaya candy. Papaya pickle. Canned papaya and cocktails, Papaya nectar.
Canning of ripe pulp. Papaya slabs, Papaya toffee and Papaya jam.
5. Juice, Pickles and Squashes making unit
In the two hill districts seasonal fruits like Orange, pineapple, pears, plum,
peaches, jackfruits etc. are grown abundantly. Even many fruits, which grow in
the hilly areas, are not properly consumed because of their wild varieties. These
can be consumed after processing i.e. making pickles, candies, juices, squashes
and jams. Iri view of the availability of these fruits in Assam Hills, a number of
small scale units can be set up for making squash, juice, jelly and jams from
Pineapple, orange, mango, plum etc. Manufacture of fruit juice, jelly squash and
jam may be developed in Assam Hills on the basis of these locally available
fruits. These types of units require huge investments in terms of machinery
particularly for processing and bottling/canning operations. There is good
market of fruit juice, jelly and jams in towns and cities. The women
entrepreneurs of Assam Hills can easily start SSI unit for manufacturing pickles
as it is considered to be a household activity. It requires neither huge investment
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nor very high level of skills. Such units can be established after short period
training on the method of pickles preparation and preservatives.
6. Ginger Dehydration plant
In Assam hills, gingers are abundantly produced in all hill slopes under
jhum cultivation. Agriculture Department of the two districts have plans for
establishment of two Ginger dehydration plants in Karbi Anglong and two in
Mahur of N.C. Hills. A Ginger Dehydration unit was established at Mahur under
Cooperative sector, but remained closed from last several years due to crunch of
fijnd and mismanagement. On the basis of the present volume of production.
Ginger Candy and Ginger Powder units can also be established in these two hill
districts.
7. Spices, Curry powder, Oleoresin and other Essential Oils Units
A number of spices and aromatic plants grow in different parts of Assam
Hills. Spices such as ginger, turmeric, chilies, black pepper, cardamom are
produced in these areas and at present huge quantity of these are sent to out side
the region. These can be used for the production of high value export items such
as spice oils, oleoresin and other essential oils. Spices are commonly used in
every home and are necessarily purchased in small quantities by the people.
Curry powder is very popular among the housewives because of their ready to
use nature. There is great scope for setting up few numbers of spice grinding
units to meet the needs of the local people as well as the State.
8. Oil Crushing unit
Assam Hills has a total area under oil seed cultivation 23.25 thousand
hectares during the year 1998-99. Among oil seed crops, rape and mustard is
cultivated in 2/3'̂ '* of the total oil seeds area of the two districts. Considering the
availability of mustard seed Oil, crushing units can also be established in both
the Hill districts.
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9. Cotton Ginning unit
In many places of Assam Hills cotton is cultivated which are at present
sent to out side of the districts. It is an important fiber crop of the hills region.
Total production of cotton in two Hills districts during 1998-99 was 482 bales.
There is scope for setting up few cotton ginning units in Assam Hills.
10. Pineapple Fiber Extraction unit
Assam Hills is known for its production of Pineapple. Jatinga, Harangajao
and many hill slopes are the largest pineapple growing areas. Pineapple leaves
after the harvesting as waste, which can be profitably used in the manufacture of
yarn from the pineapple leaves. The yarn can be used in the looms for weaving.
It can be done manually or by machine. Extraction is quicker and less costly
when machine is used. There is good scope for setting up of such extraction
units in Assam Hills.
11. Mini Rice Mill
Existing Rice mills of Assam Hills are not sufficient to meet the
indigenous demand of rice. Total rice production in the two hill districts
recorded production of 2.74 lakh MT during the year 1996-97 in an area of
1,612 hectares. In view of the existing demand there is ample scope for
establishing more mini rice mills every nook and corner of rice producing areas
of Assam Hills.
12. Cheera (beaten rice) making unit
There is great demand of Cheera in the Hills as well as other parts of the
State. Such .food item is used for break fast by many households. At present
some Bengali" families produce Cheera in their wooden mortars (Dhenki) for
local market. Considering the existing demand and availability of rice
production in Assam hills few cheera-making industries may be economically
viable to start.
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13. Gur & Sugar making unit
Sugarcane is a commercial crop grown in Assam Hills. Sugar can is
abundantly cultivated in Dayangmukh, Kheroni and other plain areas of Karbi
Anglong. Total area under sugarcane was 5,449 hectares and production was
2.34 lakh tones in 1998-99. Hence, the availability of sugarcane, along with
limestone and coal, combine to form an attractive base to set up an Integrated
Sugar Complex in Assam Hills. This complex could not only manufacture sugar
(which has a high domestic demand), but also have distilleries to produce
molasses, industrial alcohols and potable alcohol. With proper extension efforts
this crop has the potentiality to feed the Khansari mills or sugar mills in its
adjoining areas.
14. Mushroom Production/Processing unit
Mushroom growing has become popular in Assam Hills during recent
years. Considering the increasing demand among local tribes and in the
neighbouring districts there is enough scope of establishing a number of
Mushroom growing units in Assam Hills. To preserve the products for later
consumption these are required to be canned; but at present no such processing
unit is available in the two Hills districts. But it is a deterrent fact that, being
highly perishable commodity, mushroom farming on commercial basis cannot
be profitable unless they are canned or processed, as it is not possible for all
mushroom growers to market the products within a reasonable time.
6.3.2. FOREST-BASED INDUSTRIES
From the point of view of small-scale industry in Assam Hills the most
promising resources are forest wealth. The forest resources of the north-east
relative to the rest of India are so substantial that there is ample scope for such
national market oriented units in this region despite its remoteness from major
markets (varma, 1996). As stated in the previous chapter (Table 2.3) at present
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total area under forests in Assam Hills is 5.6 lakh hectares, which accounts for
36.8% of the total geographical area of Assam Hills. The forest area of hill
region has been decreasing since last few years. Forest resources such as timber,
fuel, bamboo, cane, agar wood, medicinal plants are available for exploitation in
the Hills region. Both the hill districts have some registered forest-based units
such as saw and timber mill, furniture making units, cane and bamboo units and
Citronella oil producing units. But as stated earlier due to non-availability of
timber for imposing ban order by Supreme Court in cutting of trees, many units
are either closed or become sick. However, in view of the vast and varied forest
resources scattered all over the hill areas, there is enough scope of establishing
forest base SSI units. This will not only help in industrial development, but also
help in employment generation.
The industries which are identified as per Industrial Potentiality Survey
Conducted by Joint Director of Industries (Hills) and "Udyug Sahayak" as Small
Scale Industries based on forest products for Hills region of Assam are-(l)
Wooden electrical accessories (2) Wooden toys (3) Wooden umbrella handle (4)
Stone crushing (5) Cane and bamboo products (6) Carpentry mechanized (7)
Ayurvedic Herbal/ Medicines (8) Collection of non-edible oil seeds from forest.
/. Wooden Furniture
The growth of economy and population has resulted in a rapid increase in
number of residential buildings, hospitals, commercial establishments,
educational institutions & office buildings. Furniture and fixtures are essential
items in any building whether commercial or residential and hence
corresponding increase is observed in their demand. Wood is the material
commonly used for doors, windows, cots, chairs, tables, almirahs, racks, roofs
etc. The major attraction of wooden furniture is its elegance and strength and
this has resulted in the increased use of wooden frames and wooden partition
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walls in building construction. In Assam Hills the market for wooden furniture
has been experiencing a significant growth in recent years. The demand for
household furniture in any state depends on a combination of climatic, economic
and social factors. Based on the large availability of suitable wood in the region,
scope for new units for manufacturing wooden furniture is very bright.
2. Mechanised Carpentry unit
Due to the tempo in the construction activities within and outside Assam
Hills the demand for the wooden joinery items is increasing day by day. In view
of the availability of quality woods, Assam Hills holds good prospects for
developing Mechanised Carpentry, which can meet the increasing demand of
doors, windows and other wooden fittings. There is a great demand for the
furniture items especially in government offices, schools, colleges and hospitals.
The existing units are not well equipped and therefore cannot produce standard
quality furniture. Although many furniture units are scattered in different parts
of the Hills region, almost all these units do their works manually, which
increases the cost of furniture. Thus to meet the increasing demand of furniture
articles, such units can profitably be set up in various parts of Assam Hills.
3. Wooden Electrical Accessories unit
Almost every village and urban areas of the State and Assam Hills are
electrified. Therefore, the demand for wooden electrical accessories such as
buttons and switchboards has been increased substantially both inside and
outside the district. The entire demand of these items is met by outside supplies.
Wooden electrical accessories can be made at low cost even from the rejects of
furniture house and saw mills.
4. Wooden Handloom Accessories unit
Assam Hills is well known for handloom industries for its quality and
originality. It is mentioned earlier that almost every household in the rural areas
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of Assam Hills are connected with the weaving industry, but most of them
produce mainly for self requirement. In recent years handloom activities have
received a great impetus both from the Central as well as State Governments,
Obviously, it has created demand for wooden handlooms among the tribal
weavers, who are economically, not sound to acquire the modern costly looms.
This shows that there is ample scope for setting up handloom Accessories units
in Assam Hills.
5. Wooden Photo Frame Unit
Cheap quality photo frame have good market both inside Assam Hills and
the State as well. Photo frame units require less capital investment and simple
machineries and thus manufacturing process is quite simple. The local
entrepreneurs have enough scope to set up such units on the basis of raw
materials available in entire Hill region of the State.
6. Cane and Bamboo Unit
In Assam Hills, Bamboos are largely grown everywhere and Cane also
grown in many places. There is great demand of Cane furniture and bamboo
products in and out side the districts. Having decorative Cane furniture set in the
drawing room is considered as the pride of the households. On the basis of
available raw materials, the local entrepreneurs can easily start cane and bamboo
units.
An analytical look at the applications for which wood is being used and
the usage of bamboo indicates that it is possible to use for all applications for
which wood is being used. The usage of bamboo has in fact been established
conclusively for categories that consume larger volumes of wood, namely, paper
pulp, plywood, construction and furniture. The timber or wood industry caters to
mass consumers. Bamboo-based intermediary products can be used by most of
them. For instance Bamboo ply board, Bamboo flooring, Bamboo pulp &
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bamboo furniture. There are great opportunities in revival of some of the closed
plywood industries in Assam to produce bamboo-based products utilising their
existing facilities. Ready made infrastructure like Export Promotion Industrial
Park (E.P.I.P), Integrated Infrastructure Development (I.I.D's), Growth Centres
can be made use to start bamboo based industries in Assam Hills. The North
East Council (NEC) has formulated a Task force and accordingly in Assam a
State Bamboo Cell has been constituted to conduct a survey to accesses
resources and potential including promotional scheme for Tissue culture,
plantation, processing and marketing of bamboo products.
7. Citronella and Cinnamon oil Extraction unit
Citronella grass is grown in different parts of the Hills region, particularly
foot hills of Karbi Anglong and Jatinga area is well known for this grass. The
climate and soils are suitable for cinnamon and citronella grass production.
Large areas, which have been abandoned after one or two jhum cycles, are
found to be suitable for citronella and cinnamon plantation, which is also eco
friendly. Cinnamon oil is being used for medicinal and other purposes. In fact
Karbi Anglong produces substantial amount of Citronella oil. There is good
prospect for more Cinnamon leaf oil and Citronella oil extraction unit in the
Hills areas as the necessary raw materials and cheap firewood for distillation of
these grasses is available in Assam hills.
8. Match splint
Assam Hills being rich in timber has all the potentialities for
establishment of such unit. This is a common item used in every home and
hence a necessity. The small-scale units for the manufacture of this product will
be very economical in Assam Hills. Though establishment of such units require
huge capital investment they are labour intensive and will provide employment
opportunities to a large number of unemployed youth of the Hills region.
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9. Ayurvedic/Herbal medicines
Assam Hills is endowed with rich herbal and medicinal plants and
therefore, hold good promise for the development of industries based on these
herbs and medicinal plants. After identifying the commercially viable medicinal
plants and assessing their potential, some drugs and pharmaceuticals units could
be started based on these. Some traditional medicinal plant species are in
abundance in the forests of Assam Hills. A list of these medicinal plants
available in Assam Hills is given below.
1. 2. 3. 4. 5. 6. 7. 8.
Table 6.2 List of Medicinal Plants of Assam Hills (Botanical name)
Abelneoschus moschatus Andrographis paniculata Aquilaria agallocha Artemiscia annua Asparagus recemosus Bacopa monnieri Desmodium gangeticum Gymnema sylvestris
9. 10. 11. 12. 13. 14. 15. 16.
Homalomena aramatica Mucuna preriens Piper longum Pogostemon cablin Rauvolfia serpentina Santalum album Smilax china Jylophora indica
Source-(Website) http://www.industriesassam
Since long the useful herbs of the hills region are used by the tribal people
as medicines in curing different diseases, though these are not economically
exploited till now. Therefore, these wealth have had little impact on the
economy of the Hills region. The non-use of these herbs and plants for the
industrial purposes locally is primarily due to the fact that the tribal people are
not aware of the end use of these herbs, hence have not been able to appreciate
their commercial values. But if these herbs and plants are preserved, regenerated
and harnessed judiciously and scientifically, the medicinal plant like solvent
extraction units mainly consisting of pulverizing units has a bright prospects for
its development in Assam Hills.
10. Leaf plates
In the public feasts, railway stations leaf plates are used as disposable
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plate. Necessary and suitable leaves for making such plates are available in
Assam Hills. It requires a small press, which is, not be very costly. Though
paper plates are largely used now a day as substitute of these, yet many people
still prefer to use such leaf plates. Therefore, this industry may be developed in
the areas where suitable leaves are abundant.
6.3.3. MINERAL-BASED INDUSTRIES
Assam Hills is rich in minerals like limestone, coal, siliminate, industrial
clay, etc. The growth of mineral-based industries provides scope for
development of downstream industries. Besides downstream industries, several
units based on the mineral resources of Assam Hills can be considered. Varma
(1996) has suggested that as cement is a low value product and limestone
deposits are in the more remote parts of the Hilly region, this industry may have
to be oriented essentially to local requirements. Minerals like Beryl, Building
stone Glass and Quartz are also found in some areas. The following mineral
based industries have the potentiality in Assam Hills.
1. Coal Based Industries
Assam Hills produces considerable quantities of coal. Coal of Assam hills
is of poor quality and scattered in small parts. This coal can be used for
production of several chemicals and other industrial products.
2. Limestone Based Industries
Umrangso and Bokajan area are known for limestone deposits. The
quality of these deposits varies from cement grade to chemical grade. So far the
only large industry utilising these deposits has been the Cement industry. Assam
Hills holds great potential for the rational utilisation of limestone in various
industries. Lime is the most widely used chemical and is a raw material for
many industries. Both direct as well as indirect industries can be developed
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optimally. At present there are three Cement Plants in N.C. Hills and two in
Karbi Anglong. In view of the available deposits of lime stone there is scope for
setting up of many units under SSI sector in Assam Hills such as Cement Plants,
Lime Plants, Calcium Carbide Plants, Precipitated calcium carbonate units and
Bleaching Power Units. Besides, a few other industries that can come up in this
sector includes 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. The lime making
units at present are extremely negligible in the hills and as a result, the local as
well as district or State demand of lime is being met from outside supply. The
development of these units will serve two main purposes- (i) such unit will
improve income levels of the people, (ii) They will not only fulfill the increasing
demand for lime, but also would augment lime availability in the State. Several
small lime plants upto a capacity of 50 TDP to meet the requirements of
building grade lime and also to supply HPC paper plants at Jagiroad and
Panchgram may be set up in Umrangso area. There is a demand-supply gap of
approximately 25% for white cement in the country, which can be made from
the high-grade limestone of Assam Hills.
3. Caustic Soda (lime based) is another product, which can be set up as a
capital-intensive project. Since Soda Ash is a primary raw material, an
integrated plant can be set up to manufacture both the products.
4. Hollow Cement Block making unit
In Assam Hills mainly in North Cachar Hills district bricks are very costly
as these are supplied from outside the district incurring extra carrying
expenditure. Use of hollow cement block requires minimum cement and at the
construction site. Such unit can be set up within the vicinity of cement plant and
where there is market potentiality.
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5. Stone Crushing unit
Building construction is now a day a major activities in Assam Hills. The
building materials like bricks, crushed metal etc. are continuously being
consumed on a large scale. Reinforced Cement Concrete (RCC) being the most
predominantly used roofing system, the demand for materials such as cement,
steel and crushed metal (granite) continues to be on the higher side. Crushed
stone is indispensable for construction of Roads. Crushed stone of size 1.5
inches and below 3.8 inches is required by Railways, Civil and Public Works
Departments. Crushed metal is also being used for flooring and various other
concreting jobs.
There are abundant stone boulders lying in the bed of rivers as well as
higher lands of Assam Hills. Civil construction work undertaken by different
government departments. Institutions as well as by private individuals has been
growing in Assam Hills as well as in the adjacent districts for which the demand
for stone chips for such RCC construction is increasing rapidly. Besides the
requirement of the railways and PWD these stone chips are needed in building
construction. To meet the increasing demand several numbers of stone crasher
unit (permanent or movable) can be established in the Hills region. The industry
is employment oriented and support local labour on regular basis and thus will
contribute a lot to the economy of Assam Hills.
6.3.4. ENGINEERING BASED INDUSTRY
In Assam Hills, Engineering units consist of small repair workshops and
in fact, not large manufacturers. The exiting Engineering industries are
Steel/AUuminium furniture. Aluminium utensils. Gate and Grills, Battery
charging. Hollow Cement Block etc. In the recent years demand for fabrication
items has increased in Assam Hills due to their multiple uses in building and
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construction works. Bedsides, growing use of steel furniture and other steel
equipments also create demand for fabrication. Steel almirahs find their
prominence at each and every place like Government and private offices, shops,
houses etc. Steel tables and tubular chairs are becoming increasingly popular
due to its nice appearance, durability and lightweight. They are mainly used in
offices, commercial establishments, hospitals etc. This type of industry has a
good scope in growth centers like Diphu, Bokajan, Haflong, Maibang etc where
electric power is readily available.
6.3.5. TEXTILE BASED IND USTRIES
L Decorative Textile Weaving unit
The tribal weavers are having skills in weaving; hence decorative textile
units have good potential in Assam Hills. These people weave their dresses with
their own distinct design of embroidery and display. Karbi, Dimasa, Naga, Kuki,
Mizo and all other tribes have their own traditional design of embroidery, which
are displayed in shawls, chaddar and mekhelas. Their traditional decorative
shawls have great demand inside and outside districts.
2. Handloom Textile and Handicrafts units
The people of Assam Hills have traditional skills in handloom textile and
handicraft. This traditional skill can be utilized for promoting textile-based units.
The growth of sericulture and the demand for yam in the handloom sector
provide a base for the development of Textile industries. Tribal clothes with
tribal designs have a great scope for promotion and development. The region has
skill in various types of handicrafts, which can be utilized profitably in the
growth and expansion of industries. Productivity in handloom sector will
probably increase due to introduction of improved technology. So also,
productivity in the handicraft sector will improve. These sectors will not only
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meet the needs of internal consumers but also expected to export their products
to other parts of the country. The development of tourism will lead to further
expansion of these two sectors contributing to the overall growth of the
economy. Khadi and village industries play an important role in the process of
rural industrialization. The State has been implementing a number of projects for
the promotion of Khadi and Village Industries.
3. Readymade Garments
The demand for readymade garments in keeping with the modem clothing
has been increasing for the last several years in the Assam Hills and the State as
a whole. The spread of educational institutions, industrial and commercial
concerns have actually provided many avenues in these areas. In view of the
changing custom, taste, habit and fashions of the people and change in the living
standard, there seems to be a good scope for setting up of few units for ready-
made garments in Assam Hills. Such readymade garments include uniforms for
school children, Mosquito nets, pillow cover, and other hosiery goods; which are
commonly used dresses of different tribal people of two districts as well as other
States of the of North East. Tribal women of this region can set up such units
either individually, or it would be better if Mahila Samitee's were formed to take
up this work.
6.3.6. LIVESTOCK BASED IND USTRIES
The climate of Assam Hills is well suited to livestock rearing. The Hills
region is rich in fodder and could support and sustain a large population of
livestock. The livestock resources of Assam Hills provide good scope for
exploitation by industrial sector. Fish is a delicacy of the people of the
Northeast. Similarly, demand for egg is plenty. But Assam Hills is deficient in
the production of these essential food items. Fish and eggs are being imported
from other parts of the country, particularly from Andhra Pradesh. The potential
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for development of livestock and livestock-based industries is yet to be
exploited. The SSI units that can be developed on the basis of livestock of
Assam Hills are-
1. Animal Husbandry and Meat Processing industries
In Assam hills, every tribal family rears pigs, poultry for their own
consumption as well as for marketing. Besides, many Piggery and poultry farms
under private initiative have been developed in recent years. Some Cattle,
Poultry and Pig farms are located both under Government and private
ownership. The Veterinary Departments of both the districts have their own
Poultry and Pig farms. However, the cattle farming have not been developed
among the tribal people due to lack of proper knowledge. To meet the large
demand-supply gap of meat in the district as well as of the North Eastern
Region, there is great scope for setting up Animal husbandry and meat
processing units in Assam Hills
2. Dairy Products/Processing unit
In Assam Hills, most of the Nepali people rear cows and even some tribal
people rear Buffaloes for commercial production of milk. The forest areas are
extensively used as grassing ground for feeding the cows and buffaloes. At
present one Mini Intensive Cattle Development Project is functioning at
Umrangso with 10 Nos. of Centres with liquid and Frozen semen, and under the
Dairy development programme one Creamery Centre is established at Umrangso
with a creamery plant. These units are not sufficient to feed the milk produced in
this region. There is enough scope for setting up more dairy product processing
units in Assam Hills. Such dairy products are generally Cream, Paneer, Ghee
and varieties of sweets.
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3. Cattle/Poultry feed unit
There is a good demand for cattle feed which is mainly used for cows,
buffaloes, bullocks etc. Health of cattle depends on its feed. Generally
cattle/poultry feed must contain good amount of good nutrients such as Protein,
Carbohydrates, Fats, Vitamins, Minerals etc. Therefore, such cattle/poultry feed
should have right proportion of these ingredients. Cattle farming and poultry
farming have nowadays been considered as active growing activity in
agriculture or in animal husbandry. At present there is no registered
cattle/poultry feed unit in any of the two hill districts; so there is enough scope
for setting up of cattle/poultry feed units in Assam Hills.
6.3.7. SERVICE-BASED INDUSTRY
In Assam Hills, the Service-based industries are now playing an important
role in the overall economic activity. The important servicing units of Assam
Hills consists of Automobile repairing workshops, Battery charging, electrical
goods repairing, refrigeration repairing and assembling, Photostat, Lamination,
TV. Repairing and assembling, vehicle services etc. The existing as well as
potentiality of such units is explained below.
1. Automobile Repair-cum-Servicing shops
During last few years number of government vehicles as well as private
cars, Gypsies, Auto-rickshaws, Bikes, Scooters and Trucks have increased in
fast rate in Assam Hills along with other districts of the State. But there is lack
of modem automobile repair-cum-servicing centres to commensurate the
growing needs in the hills region. Though some Automobile Servicing Centres
are established in the urban and semi-urban areas, they are not well equipped to
provide all types of services. The vehicles of N.C. Hills are to send either to
Silchar or Guwahati and the vehicles of Karbi Anglong to Nagaon, Golaghat or
Guwahati for major repairing and servicing, which involve not only huge
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expenditure but also considerable time. In the hilly route number of workshop is
very rare and in many places there is no workshops to repair any vehicle, and the
vehicle owners are to suffer a lot during their course of journey if the vehicle is
cracked in the midway. The establishment of well-equipped workshops will
cater to the requirements of government and private vehicles primarily and also
the trucks, which run through the hilly route.
2. Electronics & Information Technology
Demand of electronics goods is fast growing in Assam Hills along with
the rest of the county. Use of TV, Radio, Watch/Clock, Computer, CD, DVD,
etc. is becoming common in urban and even many rural households. Though few
Electronic based servicing and repairing centre has been established in the main
centres of Assam Hills; these are lacking trained personnel and not well
equipped with modern appliances. There is great scope of electronic based
servicing units to meet the growing need in Assam Hills. The State Government
also encourages to setting up of electronic-based industries and complexes in the
sphere of information technology in private sector and/or joint sector. With the
growth of Compute & Information Technology, now computer assembling, data
processing, Computer servicing and computer software are the common
services, which provide the scope of developing electronic based units.
3. Electrical based industries
The existing electrical industries in the Hills region are Electrical wire
netting both domestic and office, battery charging/assembly. Repairing center
for domestic electrical appliances, dry cleaning etc. The electrical goods are
used by those houses, which have electricity connection both for commercial
and domestic use. Electrical wire netting is now an important service, which has
the facility of registering as SSI unit under DICC. The existing electrical based
units are not sufficient to meet the growing demand of electrical goods. There is
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immense scope of electrical servicing units in Assam Hills.
6.3.8. MISCELLANEOUS INDUSTRIES
1. Printing & Stationery units
In Assam Hills some SSI units can be setup for manufacturing printing
and stationery goods, which can engage many entrepreneurs by providing
employment opportunities to them. These units can produce Black board, duster,
brass utensils, decorative paper. Exercise book and register, File cover, file
board, Book binding, paper envelop, paper bag, paper cup plate etc.
2. Exercise book & Register and book binding units
At present there are 1.2 lakh (appx.) students on the role in different
educational institutions of the two hill districts. Besides, various departments
and offices also require a large quantity of stationery items. Most of the
requirements of their exercise books and other stationery are obtained from
outside supplies. More over. Bookbinding and Envelop making units are also
not available. Considering the present demand of stationery items there is ample
scope for setting up some units to manufacture exercise books, cashbooks,
ledger, register books etc. Besides, manufacturing of file cover, envelope
making, book binding also provide scope for self-employment to many young
entrepreneurs of Assam Hills.
3. Wooden Stationery, Pencil, Duster manufacturing units
In Assam Hills, there is no unit engaged in the manufacture of Drawing
boards, Pencils, Roller & Scale, Duster and wooden stationery articles. The
demand for these items emanates mostly from technical & Educational
institutions. Public Works Department (PWD) and Architects engaged in both
public and private sector. The entrepreneurs Assam Hills can establish these
units to meet the growing demand of such items.
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4. Bio-technology Based Units
There exist a high potential for the setting up of biotechnology-based
industries in Assam Hills. This industry is essentially knowledge-based and can
function with minimum resources and limited transportation infrastructure.
5. Tissue Culture and Orchid Units
Assam Hills is well known for various species of orchids. Orchid
cultivation can be taken up viably as an industry in the Hilly region. Orchids
have a high value realisation in the international markets. The orchid lovers may
be gainer through large-scale commercial exploitation of varieties of orchids in a
systematic and scientific manner through tissue culture. Similarly Flori-culture
also has the scope to develop whereby many people will be benefited.
6.4. POTENTIALITY OF PLANTA TIONINDUSTR Y
Assam Hills has good prospects for the development of industries based
on plantation crops such as Tea, Rubber, Coffee and Citronella. Tea plantation
and processing have occupied an important place in the economy of Assam
Hills. There are 349 small and 8 medium tea gardens in Assam Hills, of these
143 small and all 8 medium tea gardens are located in Karbi Anglong; while 206
small gardens are in N.C. Hills. Tea industry offers scope for the development of
ancillary and auxiliary industries. Based on the requirement of the tea industry,
cane and bamboo basket-making unit, polythene bag-making unit, umbrella-
making unit etc. can be considered.
Assam Hills is proved suitable for rubber cultivation. In view of the
availability of raw materials; rubber-based industries have good prospects in
Assam Hills. The plastic sector has a great potentiality for development of
small-scale industries.
The area under coffee plantation in Assam Hills was 773 hectares and
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production coffee was 19 thousand kg with the yield rate of 24.6 kg per hectare
in 2001. Thus the prospect of coffee plantation is also bright in the hilly region.
In Assam Hills, Citronella plantation has been gaining popularity among
the local farmers. Large areas that have been abandoned after one or two Jhum
cycle are found to be suitable for citronella plantation. The young entrepreneurs
can come forward to initiate plantation of citronella grasses in their farms for
extraction of citronella oil which has great demand in and out side districts.
6.5. POTENTIALITY OF TOURISM INDUSTR Y
Assam Hills has vast potential for tourism. This hills region is
fascinating which can attract the domestic and foreign tourists. Assam Hills has
unique cultural and ethnic diversity. The rivers, forests and mountains provide
scope for adventure and eco-
tourism. Assam Hills should
be made a tourist hot-spot
like Kashmir has become.
The development of tourism
will lead to improvement in I
the transport andl
communication system,
growth of hotel industries etc. Jatinga bird mystery
Tourism can generate several social and economic benefits. The Hills
region may be considered for promoting pilgrim tourism, cultural and historical
tourism, recreation tourism and wildlife tourism, adventure tourism to attract
tourist to this part of the state. There are many tourists spot in Assam Hills. The
world famous Jatinga bird's mystery of "committing suicide" at Haflong is an
important attraction of the only Hill station. Besides, there are many tourist spots
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in both the hill districts
including picturesque
town of Haflong,
historical monument of
Dimasa Kachari king of
Maibang. NEEPCO hydel
power project site of
Umrangso, Panimoor, mmm^mmmm..
Garampani, etc; while Koka Falls at Panimur
among the tourist spots of Karbi Anglong Koka falls at Panimur, Tourists
centers of Amreng,
Khanduli, Umwang,
Kohora Resort, Trek
king Expeditions to
Singhason, Wild venture
at Silveta, Marat, Longri
Sanctuary etc are
important. The develo-
Bridle path inside Kohora (Kaziranga ) pment of tourism will
contribute to the development of handloom, handicraft and also the sericulture
sector.
6.6. CONCLUSION
Given the generous resource endowment and the presence of few
(medium size) public and private sector cement industries, there is good
prospect for growth of Small industrial sector in Assam Hills. The process of
liberalization and new industrial policies incorporating an attractive package of
incentives and other benefits, industrial development has been encouraged for
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economic upliftment in the Hilly and backward regions of the State. It is
expected that a good number of small scale industries may be developed in the
near future provided suitable investment friendly climate is created in this hilly
region. This requires an active support from both the Central and State
Government and the participation of the local people. However, the Government
of Assam should take appropriate step with proper support of both the
Autonomous Councils for promoting Industrialization process. The State must
provide the infrastructure, if not, then provide counter-guarantees and other
necessary incentives to private investors in creating the infrastructure, without
putting any burden on the Autonomous Councils. The State Government should
also take active steps to promote an investment friendly environment for
attracting private investors, both domestic and foreign, so as to develop different
small, medium and large scale industries based on the industrial potentials.
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