INDUSTRIALISATION OF TRIPURA
Present Status & Future
Prospect
The Tripura
Advantage
The Location Factor
Tripura is surrounded by Bangladesh on three sides.
Tripura , in the past, had excellent transportation links with the erstwhile East Bengal
and through it, with West Bengal. The straight-line distance between Agartala and Calcutta
is only about 350 Kms (approximately the distance between Madras and Bangalore). Many
large towns in Bangladesh are within 150 Kms of the towns in Tripura as can be seen from
the following :
- Agartala-Dhaka : 150 Km.
- Kailashahar-Sylhet : 90 Km.
- Sabroom-Chittagong : 75 Km.
- Sonamura-Comilla : 11 Km.
The
transportation links were through rail, road and waterways. The railway network of
Bangladesh runs along the state’s border. The economy of the State and the adjoining
parts of Bangladesh has always been integral and any separation of trade, commerce and
economy between the two is artificial and possibly, not maintainable. The ties between
Tripura and Bangladesh are further cemented by very strong social and cultural linkages.
The people till date share kinship ties and relationships through marriages. The languages
and dialects spoken in different parts of the state are common with those in the
neighboring districts of Bangladesh. Thus, the natural links of Tripura with Bangladesh
are historical, deep-rooted and at several planes.
During recent
years, a number of initiatives have been taken at the level of the Government as well as
the business community, aimed at re-establishing the historical links between Tripura and
Bangladesh. The official trade between Tripura and Bangladesh was started during 1994-95.
As many as 8 Land Custom Stations have been notified for the purpose, out of which 3 are
operational at present. The Bangladesh Government has also set up a Visa Office at
Agartala. The present volume of trade in about Rs 170 million per annum, but the same is
expected to increase fast, with the bringing down of tariff and other barriers under SAARC
initiative. The declared goal of SAARC nations to make South-east Asia a "Free Trade
Area" by 2001 AD has the potential of revolutionizing the Tripura Economy, as it will
put an end to the geographical isolation of Tripura. Serious initiatives have also been
taken in recent years for getting a transit route through Bangladesh , to connect Tripura
with the rest of India as well as to the Chittagong Port of Bangladesh. Commencement of
Border trade with Bangladesh is also under active consideration. There are also
suggestions to re-establish the old Rail/ Road/ Waterways links with Bangladesh. All this
augurs well for Tripura. It will effectively integrate the Tripura Economy to the rest of
India as well as to the other countries in the Region. In fact, it will make Tripura the
"Gateway to the North-East" and will give a great boost to the state economy.
It is expected
that within next few years, the Tripura Economy will be effectively integrated with
Eastern India as well as other countries in the Region. This would open up a vast market
for the industrial units based in Tripura.
 
Infrastructure - Physical & Social
The Government of India has recently taken a number
of initiatives to develop infrastructural facilities in Tripura and other North-eastern
states. A broad-gauge Railway line is being extended upto the state capital, Agartala.
Roads and Airport facilities are also being developed. Telecommunication facilities are
being upgraded. As regards Power, a number of Thermal/ Hydel Power Projects in Tripura/
other North-eastern states are in an advance stage of implementation, as a result of which
Tripura is expected to be Power-surplus by 1998. The power tariff is also very low in
Tripura, being less than Rs. 1.00 per unit, as against about Rs. 3.00 per unit in other
parts on the country. Moreover, natural gas available in the state can also be used as
fuel (as substitute for electric power), which provides an alternative to the industrial
units coming up in the state.
As regards social
infrastructure, it may be noted that the state has a vast pool of educated/ trained
manpower. As mentioned earlier, the literacy rate in Tripura is quite high and the state
has a good network of educational institutions, including technical institutions. The
unemployment rate of educated youth, including those who are technically qualified, is
quite high. This can be turned into an advantage, by suitably deploying the available
manpower, to meet the industrial needs.
Incentives for Industries :
State Government:
- Capital Investment Subsidy to eligible industrial units @ 30% of fixed
capital investment. Additional subsidy is also provided in certain cases. However, total
subsidy in a particular case would be subject to a ceiling of Rs.25 lakhs.
- Exemption from payment of Sales Tax for a period of 5 years from the date
of commencement of commercial production.
- 15% Price Preference to industrial units, on purchases made by State
Government Departments/ Agencies.
Central Government( Existing ) :
- Central Transport Subsidy @ 90% of transport cost of raw material brought
from outside the North-eastern region as well as the finished goods sent from the
North-eastern region to other parts of the country. The transport cost between Siliguri
(the entry point to the North-east) and the factory site only is considered for subsidy
calculations. In addition, subsidy is also available @ 90% of transport cost on movement
of raw materials and @ 50% of transport cost on movement of finished goods from one state
to another within the North-eastern region.
- Income Tax Exemption for 5 years for the new industrial units set up in the
North-eastern region.
Additional Incentives under the New
Industrial Policy announced by the GOI for the North-eastern Region:
- Growth Centres & IIDCs to be
converted into total tax free zones for next 10 years. All industrial activity in
these zones would be free from income tax, excise, for a period of 10 years from the
commencement of production. Similar benefits would also be extended to new industrial
units or their substantial expansion in other Growth Centres or IIDCs of industrial
estates/ parks/ export promotion zones set up by the states. Similar benefits will also be
provided to units located outside the specified locations, if they belong to the specified
industries listed in Annex A of the GOI circular.
- Capital Investment Subsidy (CIS) @ 15% of investment in plant and machinery,
subject to a maximum ceiling of Rs 30 lakhs would by given. Eligibility conditions will be
same as in case of tax benefits.
- Transport Subsidy Scheme will be extended for a period of another 7 years
i.e. upto 31st March 2007, on same terms & conditions, as are applicable
now.
- Interest Subsidy of 3% on working capital loans would be provided for a period of
10 years. Eligibility conditions will be same as in case of tax benefit.
- A comprehensive insurance scheme for industrial units to be designed, in
consultation with GIC and 100% premium to be borne by GOI for 10 years.
Supportive State Administration
Tripura offers an "investor-friendly"
environment. It has a stable Government, which welcomes investments – both domestic
and foreign. It has a policy regime, which is simple and transparent, administered by an
efficient and responsive machinery. The state government is committed to provide all
necessary support/ clearances through a "Single-window" approach.
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