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.
