The Hindu Business Line : State's strategic location gives it an edge over others

Rubber has been identified as one of the thrust areas in Tripura, in view of its suitability to the terrain and acceptability among the tribal populace.

MR TAPAN CHAKRABORTY, Minister for Industries and Commerce

The Tripura Government is happy with the Centre's new industrial and investment promotion policy for the North East. However, the State's Minister for Industries and Commerce, Mr Tapan Chakraborty, feels that a number of incentives, which were available earlier have not been included in the new policy.

According to him, this has led to uncertainty about the future of ongoing projects. In some cases, projects in the pipeline may be discontinued because, without special fiscal benefits, they would become uncompetitive compared to similar projects in other parts of the country. The following are excerpts of the answers to a questionnaire sent to the Minister.

Since more than 60 per cent of the land in Tripura comprises forests, with only a small portion under cultivation, what steps are being contemplated by the State Government to convert this forest cover into commercial wealth for the people of Tripura?

Tripura is one of the global hotspots of bio-diversity. Rain forest resource is rich and abundant. The primary objective of the State Government is promotion of secondary and value-added production both from current primary products like bamboo and rubber, and from new operations such as bio-fuel from jatropha, medicinal plants, essential oils etc.

The State Government is contemplating PPP model for development in these sectors and plans to have degraded land of about 10,000 hectares for the purpose. Eco-tourism is another potential sector, especially in designated protected areas of Trishna, Shipahijala and Roa.

Is inadequate infrastructure viewed as a major roadblock for proper development of industry in Tripura? What is the current state of investments in terms of value and what more are in the pipeline?

It is true that Tripura is geographically relatively isolated from the rest of the country, but it is strategically located in an advantageous position among all the Northeastern States. Most of the towns of Bangladesh are within 150 km of the international border and, thus, there is significant scope for promotion of exports. Besides, if we have access to Chittagong Port, which is only 75 km, from the southern most tip of the State, Sabroom can act as a gateway for the North East.

Regarding basic infrastructure, during last few years, there have been many positive developments, thanks to concerted efforts made by the State Government. The railway line is being extended up to Sabroom. The National Highway (NH-44) linking Agartala to Guwahati has also been upgraded to four lanes and extended up to Sabroom.

The facilities at Agartala airport have also been improved with the construction of a new terminal, extension of airstrip, provision of night landing facilities etc. Telecommunication facilities are also being upgraded by the laying of OFC network, for connecting the State capital to Guwahati on one side, and to the district and block headquarters on the other.

In industrial infrastructure, an Industrial Growth Centre as an industrial cluster is being developed near Agartala. It includes an Export Promotion Industrial Park, a Rubber Park and a Food Park. Besides this, an IT Park is also in the pipeline. With all these, we feel that adequate infrastructure facilities are available in the State for potential investors.

Between 1997 and 2006, a total of 423 units with a total investment of Rs 393 crore and generating employment for 3,508 persons have been established in Tripura. In addition, eight major projects with a total investment of Rs 312.26 crore are in pipeline.

Tripura, it is pointed out, is gearing up to emerge as India's natural rubber capital, after Kerala, especially with the Rubber Board taking up a major plantation programme. How does the State Government view this in the context of Tripura's tribal population engaged in rubber? Will rubber and bamboo propel Tripura's industrialisation in the short term?

Rubber has been identified as one of the thrust areas in Tripura, in view of its suitability to the terrain and acceptability among the tribal populace. Currently, the area under rubber cultivation is estimated to be around 37,000 hectares, which is the second largest after Kerala. The State Government is keen to promote processing of rubber and setting up rubber-based industries in the State.

What is the situation on the power front, especially gas-based power? What is the progress on the Rs 3,000-crore ONGC-IL&FS gas-based plant coming up in the State? What kind of direct benefits are envisaged apart from royalty income? Can this gas, if distributed partly for domestic industries, spur the industrialisation of the State?

Tripura is mainly dependent on gas-based power generation and is power surplus beyond the six-hour peak period.

ONGC-Tripura Power Corporation, which is a joint venture company, shall install a 750 MW Gas-based Combined Cycle Power Station at Palatana, Udaipur. For this, ONGC has invited competitive global bids, which are under process at ONGC-IL&FS end.

The ONGC-Tripura power plant along with NEEPCO Power plant that is in the pipeline is expected to usher in a new era of industrialisation. Apart from earnings in terms of royalty and revenue, power-intensive heavy industries like steel may find it lucrative to invest in Tripura.

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