Bangladesh has agreed to allow India access to Chittagong and Ashuganj ports. Agreements have been reached on a railway link between Agartala (Tripura) and Akhaura (Bangladesh); opening of the Sabroom–Ramgarh trade route and others. These agreements would go a long way and have a multiplier effect on economies of Tripura and the entire North-East.
Mr Jitendra Chowdhury.
Surrounded by Bangladesh on three sides, Tripura's problems were unique in many ways – the problem of isolation, the problem of logistics and transportation, the problem of extremist violence and, as a cumulative effect of all this, the problem of limited industrial activity and therefore backwardness. In an interview to Business Line, Mr Jitendra Chowdhury, Tripura's Minister for Industries and Commerce, explains how the state has turned the tide in its favour.
Excerpts from the interview:
Ten years back Tripura was known as a State hit by extremists' activities and with practically no industrialisation. The situation has changed a lot since then. You are witnessing fresh investments in the oil and gas exploration and production as well as gas-based power production. Tripura will soon be a power surplus State. Is the changed situation attracting fresh industrial investments to the State?
The development initiatives pursued at the grassroots level and the active cooperation from the people of Tripura have brought the State on the growth path. Not only power generation, our endeavour is to bring all the cultivable land under optimal utilisation, so that we can achieve self-reliance in food, generate maximum employment in the primary sector and augment the buying capacity of the rural masses.
Apart from the agri-based industries such as rubber, food processing, bamboo and tea, natural gas has lately become a major contributor to our economic growth. The present production level of gas is 1.62 million standard cubic metre (mmscmd) which will increase to approximately 5.32 mmscmd during 2012-2013.
To harness this major natural resources, two major gas based power projects are coming up in the State. These are the 726.6 MW ONGC Tripura Power and the 104 MW unit being commissioned by the North Eastern Electric Power Company (NEEPCO).
You could feel the changed situation from a brief profile of the industrial investments in the State during the last three-four years. This is excluding the thousands of crores of rupees invested in the two power generation projects:
We are now having two large-scale units (excluding power sector) including steel cold rolling mill (producing GCI sheets) and a rubber thread unit, which is producing export quality products. The investment in the steel rolling mill is about Rs. 250 crore and that in the rubber thread unit about Rs.100 crore.
There are some medium-scale units including a cold storage (25,000 tonne capacity), a TMT bars/rods/flats unit, a cement plant, and some tea processing factories.
Besides these, there are a number of small and micro enterprises. According to the Census 2007 conducted by the Ministry of MSME, the total number of working enterprises in the State was 109,666 (comprising 1,253 registered MSME units and 108,413 un-registered units). During last two years, additional 436 units have been registered.
Total investment made in the in industrial sector during the recent years is about Rs 700 crore. Investments proposals worth Rs. 350 crore are either in the pipeline or in different stages of implementation.
In one of our major industrial growth centre at Bodhjungnagar, out of 52 units to which land or sheds have been allotted, 22 have already become operational. We have so far received a total investment of Rs. 503 crore at Bodhjungnagar generating employment for 2,247.
What is the impact of the industrialisation on the state's economy so far?
We are looking forward to industrialisation to offer gainful employment to our ever-increasing population of educated unemployed youth. The recent pace of industrialization contributed to this as we could generate a sizeable number of jobs. At present total employment in industrial sector is around 25,000.
It is often considered that Tripura is a victim of locational disadvantage and poor transport logistics with the rest of the country. In this context do you feel that the recent extension or amendments in the Indo-Bangla cooperation treaty with regard to transport logistics would bring in a long term benefit to the state's initiative to attract investments?
Tripura is quite strategically located in the country's North-Eastern region. It has a long border of about 856 km with Bangladesh. Most of the important cities of Bangladesh (including Dhaka and Chittagong) are within 150 km of Tripura. The sea port of Chittagong is only about 70 km. from our southern border. Most important, the Dhaka-Chittagong highway in Bangladesh may be accessed from Tripura through a 5-km road.
Tripura's proximity to the markets of South Asia makes it a potential hub for eventual expansion of trade and commerce in the region. In fact, Bangladesh, with a population of around 140 million people, offers a vast market next door. This offers a great potential for setting up industries in Tripura, with a view to catering to the Bangladesh as well as other South-East Asian market.
The historic visit of the Prime Minister of Bangladesh to India has changed the scenario further. The Bangladesh Government has agreed to allow India access to Chittagong and Ashuganj ports. The agreements have been reached on a railway link between Agartala (Tripura) and Akhaura (Bangladesh); opening of the Sabroom–Ramgarh trade route and others. These agreements would go a long way and have a multiplier effect on economies of Tripura as well as other States in the entire North-East.
Do you think that the road connectivity between Tripura and the rest of the country is adequate to attract industrial investment to the State? Also what is the status of road connectivity within Tripura? To what extent state or the national highway network has increased in Tripura in the last 10 years and what is the road map for the next five years?
Connectivity is one of the major infrastructure requirements for development. On our initiative, the National Highway 44, which divides the State north to south, is being upgraded to double lane.
However, connectivity with the mainland India will improve only with improved rail network. It is unfortunate that 63 years after the Independence, Tripura is connected only by meter-gauge.
We wish positive thought would prevail and we will soon be connected by broad gauge network. It is already planned to extend the railway link to Sabroom so as to be connected with the Asia's biggest seaport at Chittagong in Bangladesh. If that happens, this will change the economic scenario of the entire North-Eastern region.
The status of economic development of a State has often proved to be one of the major drivers in attracting further investment. Will you please outline the growth indicators of Tripura and why should it be attractive to private capital, which is the driving force of today's industry?
would refer one recently published indicator related to per capita income of the North-Eastern States. The data published by the Central Statistical Organisation (CSO) show that our compounded rate of growth in per capita income is highest among all the North-Eastern States. It has increased 10.71 per cent between 1993-94 and 2007-08.
Total value of gross output of the industrial sector is about Rs.700 crore. Secondary sector contributed about 22.6 per cent of the gross state domestic product (GSDP) in 2007-08.
Peace, good governance and security have become the hallmark of Tripura which in turn is playing a crucial role in accelerating the pace of development in the State.
How would you rate the achievements of the government in the social sector and what is the roadmap ahead?
We believe in good governance and development, where every citizen has his or her stake.
Our effort in this regard has already put us well ahead of other States in the region. Be in literacy, rural electrification or per capita income, we are not far behind the national average.
However, we are now striving for more. We want to emerge the best. As long as people are with us, we are confident of achieving that.