ARUNACHAL PRADESH

Arunachal Pradesh is a land-locked state located on the eastern-most part of India on the border with China. It has flexible government policies and responsive local administration. It has the advantage of adequate availability of power from the eastern grid at comparatively low rates of tariff and good coverage of state health care system. Power is its strongest advantage, with a surplus of 13.94%.

This beautiful state is still to develop its physical infrastructure and is poorly connected with large markets for goods and services outside the state. The scarcity of skilled labor compounded with non-availability of raw materials within the state is areas that need immediate attention. There are no Domestic airports or International airports in the state.

Land area: 83,743 sq. km.
Population: 0.86 million
Capital: Itanagar
Per Capita Income: Rs 8,744
Inflate Rate: N/A.

Incentives:

The government has allotted Capital investment subsidy of 15% of fixed capital for tiny and small-scale units and of 7.5% of fixed capital (up to Rs 700,000) for medium-scale units. Factory sheds have been allotted to small-scale units at concessional monthly rents for 3 years. Also, there is a 50% subsidy on the cost of laying power lines from the main line to the factory site. 50% to 90% transport subsidy for procurement of raw materials up to the Siliguri railhead has also been given. There is a 4% rebate on interest is charged by financial institutions on term loans for 5 years, and a 5-year income tax holiday for new industrial units set up in the Northeast.