Stand Up For The North East

Team Members:
Souradip Ghosh Samarth Mahajan Nagoji Srichandana Nilanjana Bhattacharya Jagdish Chelani

SUBMISSION FOR MANTHAN 2013 THE SUNRISE STATES Realizing the growth potential of North-East

Sunrise States: Problem Definition and Approach

Guiding Principle:
Better Governance Improved Infrastructure Influx of Industry Unbiased and increased media exposure Rise of the NE States

Money and power are able to filter out the news fit to print- Manufacturing Consent , Herman and Noam Chomsky

Our Approach:
1. 2. 3. 4. Generation of a positive image for the Northeast Addressing insurgency and political strife in the region. Developing infrastructure for internal connectivity, improving mobility Encouragement of strategic investment by industries by state agencies

Our Solution: The I4NE Model Stand up for the North East

I4NE

1. 2. 3. 4.

Institutions: Focus on government offices Infrastructure: Road network, improvement in land acquisition procedure Industry: Focus on tourism, handicrafts and indigenous drugs Information: Focus on the Northeast in movies, documentaries and television, creating an unbiased image

Per capita GDP in India: INR 61,564 Per capita income in the Northeast: INR 48154 The Northeast region attracts 0.3% of international tourists who visit India and 0.9% of domestic tourist numbers. Major sources of income in Northeast: 70% depend on cultivation for sustenance. Average for rest of the country is 52% Lack of mechanisation, fertilisers - Absence of capital investment Extraction of herbs from wild by pharmaceutical industries- No systematic cultivation. Species wiped out and intellectual theft.

Lack of understanding about Northeast among reporters and sparse representation among the national media Limited opportunities to take up mass media/journalism related courses in NE Lack of information regarding the culture and life of the Northeast On TV: North East India Round Up is shown on DD National with timings: Sunday 7:30 am, Monday 4:00 am poor TRPs 87% working professionals can't name all the states of North East India while 91% have no knowledge about Northeast Industrial Policy Industry Information

Inefficient ADCs due to lack of smooth cash flow from State Govt. Lack of planning in functionsAdministrative failure of ADCs Lacunae in representation of local communities in ADCs Emergence of parallel councils due to demographic shift Concentration of social power Duplication of activities between ADC and State Government leading to confusion and lack of accountability Social impact of the Armed Forces Special Protection Act (AFSPA) Unrest over violation of Human Rights Heightened fear of violence

Issues
Institutions Infrastructure Problems of the East West Corridor Multiple delays due to problems like land acquisition, utility shifting, statutory clearance and insurgency 201 out of 232 km that remain untouched belongs to West Bengal, primarily due to land acquisition issues Outdated land acquisition law (1894)

No road network connecting capitals and major border cities of the Northeastern states hampering industrial influx

Institution: Revamping the Sixth Schedule

Segregation of DRDA and ADC activities

Setting up Guiding Committee for mediation between State Govt. and ADCs and monitoring of ADCs

ADC Autonomous District Councils DRDA District Rural Development Agency PRI Panchayati Raj Institutions

Introduction of Panchayati Raj Institutions to model villages, empowering masses

Re-identifying autonomous regions and restructuring of governing bodies every 20 years based on demographic shift. Cultural training and sensitization of nominated members of Guiding Committee and ADCs

Composition of Guiding Committee

1. Governor is ex-officio chairperson

2. 1 member per 20 ADC members 3. Nominated by Governor 4. State Service Officers, Eminent members of society, Exservicemen in ratio 2:2:1

Functions 1.Convergence of states rural development policies and ADC initiatives 2. To develop a reporting mechanism to evaluate ADCs 3. To ensure proper fund division between DRDA and ADC

Risks Corruption due to power being vested in large no. of people Opposition from existing governance bodies to change Back Up Plans Eminent members from the society in Guiding Committee to ensure accountability of ADCs and PRIs to stand as example for state as well Centre should push choices that are focused towards development rather than vested political interests Financial Model
(Guiding Committee/state/year)
Salaries: Rs. (25*60000*12) = Rs. 1.8 crore Set Up Cost (includes establishment cost of office and communication channels) = Rs. 2 crore Maintenance Cost (includes staff and general amenities expenses) = Rs. 1 crore Annual cost ~ Rs. 5 crores To be borne by State Government

Composition of new ADCs 1. 1 ADC member from each block divided on the basis of population 2. 1 ADC member per 20,000 people 3. About 4000 ADC members needed in the 7 states

IMPACT: Professional governance directed towards inclusive and sustainable development reducing public discontent, phasing out of AFSPA

Infrastructure : CFS Model for Land Acquisition

Algorithm for transfer of land from owner to the state

C
No coercion but consent

Transfer price determined by a land auction, not at states discretion

F
No force but friendship

Displaced farmer can choose to be paid in cash or land

S
Not only sympathy but support

Livelihood Compensation per year = Crop productivity of land X Area of land holding X Time

Impact
Instead of taking the average of last three years market prices, the farmer decides the value of his own land Freedom to choose price or continue farming Continued earning from land in form of livelihood compensation Elimination of delays due to land acquisition issues

Risks
Farmers set the true value of land as higher than the cap value set by the state. Refuse to relocate.

Back Up Plan
In cases where PPP projects are involved or acquisition is taking place for private companies, the proposal requires the consent of no less than 70 per cent and 80 per cent respectively (in both cases) of those whose land is sought to be acquired.

Seven Sisters Corridor to link all seven NE state capitals and the border points with Bhutan, Bangladesh and Myanmar
A. The Northern Fork Beyond Guwahati (Assam), East-West Corridor can be extended to Nagaon (Assam) from where the NH 37 and NH 52A can connect to Arunachal Pradeshs capital, Itanagar, and thereon to the planned Trans-Arunachal Highway onto Tawang (Arunachal Pradesh) which is the border point with Bhutan. B. The Southern Fork The south-west fork can connect Tripuras capital Agartala through NH 44 and thereon to Akhaura (Tripura) which is the Ashuganj Port border point withBangladesh, and to Sabroom (Tripura) which is the Chittagong Port border point with Bangladesh. The south -west fork can connect Mizorams capital Aizawl, and further fork out connecting Zawkhathar (Mizoram) border point with Myanmar in the east and Lawngtlai (Mizoram) where the Kaladan multimodal project begins. C. The Eastern Fork EW Corridor that ends in Silchar (Assam) can be developed to connect to Manipurs capital Imphal and thereon to Moreh (Manipur) which is the Friendship Road border point with Myanmar. Similarly, up north, NH 36 can be developed to connect Nagalands capital Kohima, and thereon to Avakhung (Nagaland) which is being developed as a border point with Myanmar.

D. The Western Fork The NH 40 from Guwahati (Assam) can be developed to include Shillong, and thereon to Dawki (Meghalaya) which is already being developed as an Integrated Check Point for the Sylhet border point with Bangladesh. The EW corridor must be extended to include Dhubri (Assam) where two border points with Bangladesh, Mankachar and Golakganj, are being developed by Government of Assam as border points with Bangladesh.
Benefits: New trade routes open which can be extended to become cross border trade links Spur local development through small scale industries and local entrepreneurs Influx of industry due to better connectivity which has been a problem in the past when companies like TCS, Reliance have shown willingness to set up campus in NE

Financial Impact of the SSC:

Official trade between Tripura and Bangladesh, through the border point of Akhaura, has grown from Rs. 40 Crores ($9 million) in 2006-07 to Rs. 75 Crores ($ 17 million) in 2010-11 Expected to touch Rs. 100 Crores ($ 22 million) by 2011-12 Informal trade of the border point of Moreh (Manipur) with Myanmar is close to Rs. 2000 Crores ($447 million). By connecting all the 7 border points with Myanmar, Bangladesh and Bhutan to the state capital and the NE region at large, the SSC can replicate the same trade value at all points. The SSC infrastructure will spur economic activity along the corridor, outside of the state capitals in Tier 3 or Tier 4 towns, ushering in small and medium enterprises in the region. The SSC will help create opportunities in supporting businesses even as the corridor is being built such as construction, hotels, real estate, auto services, telecom, tech, financial services, petrol pumps, housing, consumer products, etc.

Funding the Corridor: The table illustrates the cost of different parts of the corridor on the basis of comparison listed by the side. Item
Project Preparation Roads Total

Cost (Rs Crores)

440 3,680 4120

Comparative Basis
Allocation for Project Development for DMIC Allocation for Special Accelerated Road Development Program-NE

The Indian central government has a number of schemes under which funding is available for the development of the North East. Central Government Plans Outlays(Rs. Crores) MDoNER Budget 2011-12 1,550 Total Central Grant & Aid 2010-11 13,000 Special Central Assistance (All special category states) - 2011-12 8,000 Annual Total 22,550 Sharing the cost between Government, PPPs (e.g.. The Infrastructure Leasing and Financing Services (IL&FS) and Tata Group that have worked in the region), Private enterprises (e.g.. Future Groups announcement to build a food park in Bhagalpur and Mahindra funded World City in Jaipur) and multilateral agencies (e.g.. Asian Development Bank (ADB)-funded North Eastern States Roads (NESR) Investment Programme) with a ratio of 60%, 20%, 10% and 10% respectively. Share of the government divided between the Centre and the State (90:10 ratio)

Looking East : A Ministry of Tourism, Govt. of India initiative to generate revenue from tourism
WHY? ECOTOURISM One of the worlds biodiversity hotspots 66% land is forest cover Major river routes (Brahmaputra, Barak and their tributaries has a combined navigable length of around 1,000 km. CULTURAL TOURISM 200 out of 653 Indian tribes reside in NER, 1/3rd of Indias tribal population Ethnic heritage vastly different from mainland India unexplored cultural dimensions like festivals, art forms and cuisine offer novel avenues for revenue generation Indias bamboo market expected to grow to 5.5 billion USD by 2015, the UNs Industrial Development Organisation estimates the NEs bamboo production to grow up to 1.25 billion USD in the same period. Potential trade opportunities for bamboo products (handicrafts) 22 per cent of the total handicraft artisans in India are from the NER availability of skilled labour. PROPOSALS: ECO TOURISM Interaction with wildlife Show and Tell, Elephant Rides, Night Safaris Forests and Mountains Setting up campsites, Development of hiking and trekking trails Rivers and waterfalls River tourism companies for river cruises and rafting Funds to the tune of INR 5 crore per wildlife sanctuary in addition to MoEF funds guaranteed under Wildlife (Sanctuaries) Act, 1972 CULTURAL TOURISM Setting up permanent cultural centres, in New Delhi, Kolkata, Mumbai and Chennai during Stage I Expand to Tier II cities like Chandigarh, Bangalore, Pune etc. Dedicated galleries, with purchasable handicraft, centralized tour packages; from each state Restaurant serving NE cuisine and spices Countrywide celebration of signature festivals of North-Eastern states at cultural centres Eg. Bihu, Losar, Nongkrem etc. Special centralised tourist packages during festivals Initial investment of INR 3-5 crore at each centre. Maintenance costs incurred will be addressed by revenues generated at centres RISKS: Cultural Centres do not manage to break even and generate profits. However, the cultural centres seek to popularise tourism to the Northeast. Thus, revenues earned by other stakeholders such as railways, airlines, tourism agencies and small businesses etc. will add to state GDP.

Industry - A New Pharmaceutical Powerhouse: Developing Ethno medicine

WHY? Home to huge variety of medicinal herbs Wide demand from pharmaceutical companies Need to overcome current domination of the drug market by foreign pharmaceutical companies Revenue in the Indian medicine market is around US$19.22 billion by 2012. Availability of educated labour employable in industry Herb Shatavari (Tropical): Dadmardan(Tropical): Manjistha(Temperate): Chiraita (Alpine): Tagar (Temperate): Lassun (daily use): Cure for Arthritis Skin ointment Joint pain Malaria Cardiac trouble Respiratory, joint pain

PROPOSALS: RESEARCH Initiating Drug based research at Regional Medical Research Centre, Dibrugarh as opposed to current disease based research Setting up Patent Offices in coordination with the Autonomous District Councils to issue patents for indigenous medicinal species to tribal communities State departments of Environment and Forestry distribute written references for ex-situ cultivation of medicinal herbs Reference: "Krishi Darshan, Prasar Bharti Extending tax benefits to the pharmaceutical industry under the North East Industrial and Investment Promotion Policy 2007. MANUFACTURING Incentive to manufacturing by pharmaceuticals: Income tax exemption for five years for the new industrial units set up in the region (NEIIPP, 2007) Land acquisition of wastelands for development of manufacturing sites through the CFS principle explained in Slide No. 5 Approval of drugs sourced from medicinal herbs in the Northeast by the Medical Council of India

RISKS: Opposition to setting up of pharmaceutical industry Opposition from other industry sectors to tax benefits to pharmaceuticals Lack of adequate manpower and funds for research

SOLUTIONS: Guaranteed employment to a certain proportion of local residents depending on type of skills Patents will guarantee royalty to local communities Tax benefits specifically to the healthcare sector Extend research activities to medical research in other regions in India

INFORMATION
Crowdfunded documentaries 56.3% wants government to run mass awareness drive nationwide to educate people on NE Setting up crowdfunding platform initiated by Ministry of Tourism Budget ~ 2 crores for 4 episode documentary (Comparison with BBC/Discovery Channel Documentary Budgets) Content: History, festivals, culture, wildlife, nature, insurgency, personal success stories Collaboration with Discovery/BBC/National Geographic for television Special screening at educational institutions Risks: Insufficient funds collected Filming and editing delays Back Ups: Sponsorship from NFDC Ministry backed fast tracking of sanctions and security approvals

Media/Journalism Schools To initiate indigenous reporting of the communities, the locals need to become well versed in the field of media and journalism Can be diploma level courses instead of being degree level courses in state universities Risks: Locals dont show interest in enrolling at the colleges Scarce and biased reporting due to economic indifference Back Ups: Target students from all over the country Economic policies to improve infrastructure, trade and industry

North East India on TV Shift DD National show timings to evening TV slots - 5 pm to 9 pm , ensuring bigger audience Incentive scheme, in form of advertisement subsidy, for news channels which decide to air programs on NE India Risks: TV shows on NE may eat up TRP of popular shows The incentive scheme may be a burden on the already abysmal Prasar Bharti exchequer. Back Ups: Replace the program which has the lowest TRP in the slot Investment from tourism sites and companies like yatra.com, cleartrip.com, BBC etc.

REFERENCES
Indias North East: Diversifying Growth Opportunities, Indian Chamber of Commerce and PricewaterHouse Coopers North East Council Initiatives for balanced development of Northeastern region, Ministry of Development of North Eastern Region North Eastern Region, Vision 2020 Ministry for Development of the North Eastern Region and North Eastern Council Medicinal Plants Activities For Change In The Socio-economic Status In Rural Areas Of North East India, Rama Shankar and M.S.Rawat*Regional Research institute for Ayurveda (CCRAS) India's lame 'Look East' policy hitting trade: Bower - The New Indian Express (August 19, 2013) To look East, India must transform its Northeast first - DNA India (June 19, 2013) Linking Indias Northeast with Southeast Asia: Significance of Internal Connectivity & Backward Integration - Panchali Saikia Conflict in Northeast India: Issues, Causes and Concern - Philipp Heimerdinger & Tshering Chonzom A Winning Strategy for Indias North-East - Akshay Mathur (October, 2011) The Land Acquisition Bill: A Critique and a Proposal - Maitreesh Ghatak, London School of Economics and Parikshit Ghosh, Delhi School of Economics (September, 2011 Linking Indias Northeast with Southeast Asia: Significance of Internal Connectivity & Backward Integration - Panchali Saikia What Threatens Peace in Indias Northeast? - The New York Times (March 15, 2012) Seeking solutions in India's Northeast - Anna Nath, OneWorld South Asia (April 17, 2010) Counter-Insurgency Best Practices: Applicability to Northeast India - Namrata Goswami (December 6, 2012) External influences on the Northeast insurgency - Anand Kumar London School of Economics and Parikshit Ghosh, Delhi School of Economics (September, 2011) What Threatens Peace in Indias Northeast? - The New York Times (March 15, 2012) Seeking solutions in India's Northeast - Anna Nath, OneWorld South Asia (April 17, 2010) Counter-Insurgency Best Practices: Applicability to Northeast India - Namrata Goswami (December 6, 2012) External influences on the Northeast Insurgency - Anand Kumar North East India: Status of Governance in the Sixth Schedule Areas - Social Issues India Indian Council of Medical Research: http://www.icmr.nic.in/ Lonely Planet: www.lonelyplanet.com The Incredible !ndia of the Northeast: Paradise Unexplored, Margherita Stancati, India RealTime, Blog The Wall Street Journal (September 26, 2012)