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Industry in Tripura
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Industry

The State has good agro-climatic conditions, suitable for a large variety of Agro/ Horti. crops. Further, industrial development has also picked up over the past few years. In fact, during the last decade, the State has recorded impressive growth rates.

The Gross State Domestic Product (GSDP) growth rate was 10.50% during 1999-2000 to 2007-08. The Secondary sector share in Gross State Domestic Product has risen from 14.12% to 22.59% during 1999-2000 to 2007-08. The per capita income of the State rose from Rs.14,119 in 1999-2000 to Rs. 28,806 in 2007-2008.

The Strategic Location
Natural/ historical links with Bangladesh. Potential gateway between Bangladesh and North East.

856 Km. long border with Bangladesh. 7 designated Land Custom Stations. Healthy official trade growth; four-fold increase since 2006-07.

Developing linkages with trade/industry of Bangladesh.

Lowering of tariff/ non-tariff barriers with SAFTA coming into force w.e.f. 01.01.2006.

Passenger Bus Service between Agartala and Dhaka has been started.

Bangladesh has agreed to provide India access to Chittagong Port for movement of goods to and from India by road and rail, to declare Ashuganj
as Port-of-call and for establishing Agartala-Akhaura Rail Link.

Tripura is ideally located to become the 'Gateway to the North East India'.


The location of Tripura is strategic in the International context, being between Bangladesh on one side and South East Asia on the other. In the past, the State had natural communication link - roads, rail and waterways – with and through Bangladesh. Efforts are on for revival of these. Many major cities of Bangladesh and towns in Tripura are closely located, such as Agartala-Dhaka – 150 km; Kailashahar-Sylhet – 90 km; Sabroom­-Chittagong – 75 km; Sonamura-Comilla – 25 km etc. The direct distance between Agartala and Kolkata, through Bangladesh, is only 350 km.

The agreements signed between India and Bangladesh during the visit of the Prime Minister of Bangladesh to India in January 2010 have opened new vistas for establishing closer links between Tripura and Bangladesh. The Govt. of Bangladesh has agreed to provide India access to Chittagong Port for movement of goods to and from India through road and rail. It has also been agreed to operationalise the Sabroom (Tripura)-Ramgarh (Bangladesh) Land Custom Station which is only about 75 km. from Chittagong Port. This will make transit through Bangladesh a reality and will make Tripura the Gateway to the North East. There are agreements to establish other transport links between Tripura and Bangladesh as well.

The State is gearing to perform its natural and geographically assigned role of the Gateway to the North East India.


Tripura is ideally located to become the 'Gateway to the North East India'
The location of Tripura is strategic in the International context, being between Bangladesh on one side and South East Asia on the other. In the past, the state had natural communication ,link-roads, rail and waterways ?with and through Bangladesh. Efforts are on for revival of these. Many major cities of Bangladesh and towns in Tripura are closely located, such as Agartala-Dhaka ?150 km; Kailashahar-Sylhet ? 90 km; Sabroom-Chittagong ?75 km; Sonamura-Comilla ?25 km etc. The direct distance between Agartala and Kolkata, through Bangladesh, is only 350 km.link-roads, rail and waterways ? with and through Bangladesh. Efforts are on for revival of these. Many major cities of Bangladesh and towns in Tripura are closely located, such as Agartala-Dhaka ?150 km; Kailashahar-Sylhet ?90 km; Sabroom-Chittagong ?75 km; Sonamura-Comilla ?25 km etc. The direct distance between Agartala and Kolkata, through Bangladesh, is only 350 km.
The state is gearing to perform its natural and geographically assigned role of the Gateway to the North East India.

Improved Infrastructure
In the recent years, a number of initiatives have been taken to improve the basic as well as industrial infrastructure in the State. The present status is as under:

Basic Infrastructure

The State is presently power-surplus (outside 6-hour peak period). Day-round surplus expected
shortly. The power tariffs are much lower compared to other States.

The National Highway, linking Agartala to Guwahati has been upgraded and extended up to Sabroom
(the southern-most point in the State), which is only about 75 km. away from Chittagong Port of
Bangladesh

The railway line has been extended up to Agartala and the same is being extended up to Sabroom

The Agartala Airport has also been upgraded, by extension of airstrip and by providing night landing
facilities. Agartala is second busiest Airport in North East and efforts are on to make it an
International Airport.

The telecom infrastructure is also being upgraded by laying OFC network – connecting all towns, by
strengthening the Internet backbone etc. All telephony services – Landline, Mobile, WLL, 3G,
Broadband/ WiMAX internet, etc. are available in the State.

Industrial Infrastructure
Existing:
• Industrial Growth Centre
• Export Promotion Industrial Park (EPIP)
• Food Park
• Rubber Park
• Industrial Area Industrial Estates(5)


Under implementation/to be taken up shortly:
• Bamboo Park.
• 3 IIDCs (one in each District, other than West Distt).

Presently, there is a multi-industry complex at Bodhjungnagar, on the outskirts of Agartala, which comprises of an Industrial Growth Centre, an EPIP, a Food Park and a Rubber Park. Besides, there are five Industrial Estates and one Industrial Area in the State. Further, a Bamboo Park at Bodhjungnagar and 3 Integrated Infrastructure Development Centres are being set up.. The infrastructure facilities at LC Stations are being upgraded, to facilitate the import/export trade with Bangladesh.

Rubber

Suitable agro?climatic conditions.
Total area under plantation at present - 37,558 ha.
Total potential for plantation in the state - 1,00,000 ha.
Rubber Production -23,088 TPA; likely to go up.
Rubber Park being set up.

Tripura is the second largest rubber producer in the country, after Kerala. More and more plantations are reaching yielding stage and the productivity levels are also encouraging. Keeping in view the area under plantation, growth potential and rubber production trends, the state has been identified as the second rubber capital of the country. There is a vast potential for setting up of rubber-based industries in the State.

The State Government is setting up Rubber Park with technical support of the Rubber Board, Government of India. All common facilities including Centralised Quality Control Lab, Training Center, Tool Room, Centralised Latex & Carbon Black Masterbatch Unit, Warehouse for Raw Material Storage, Centralised procurement of subsidiary raw material would be created in the park for rubber based industries.

Tripura thus is an attractive destination for setting rubber-based industries. Keeping in view the myriad advantages and the positive factors, a large number of rubber-based industries have been set-up. These include rubber thread, tread rubber manufacturing, rubber band making, tyre retreading etc.

There is a vast scope of investment in sectors like auto parts, footwear, tread rubber, vulcanized rubber, rubber band, rubber cushion and mattress, latex thread, textile fabric, hoses etc

Service Sector : Tourism Health Education
Tripura is an attractive tourist destination. The state has a rich cultural heritage. There are a number of historical Hindu, and Buddhist sites. The State also has rich flora and fauna.

Eco-tourism is having potential in the State. There is also great potential for developmentof tourist circuits, involving all the NE states and if possible, Bangladesh as well. All this offers attractive opportunities for the Hospitality Industry.

The Govt. of Tripura has always put a lot of emphasis on healthcare for all. Over the years, a reasonably good infrastructure of health institutions has been created in the State. However, providing good healthcare to all the citizens is a gigantic task and in this respect, private sectors can play a very significant role.

There are 2 (two) Medical Colleges, one in the Government sector and another one in Private sector. These Colleges have super speciality divisions and modern radiology division. There are nursing institutes in Private & Government Sector. Para Medical College is also coming up. Also, there are some private Nursing Homes in the State and there is potential for more private investment in this important sector.

The Government of Tripura has similarly put a lot of emphasis on providing good education to all people and the result is a very high level of literacy in the State. The State has a Central University, ICFAI University, a National Institute of Technology (NIT), One Agriculture College, One Engineering College and a Polytechnic Institute. However, there is a great potential for private investment in this field also, by way of setting up of educational institutions in fields like Information Technology, Telecommunication, Bio-Technology etc.

Incentives for Industries

The state government offers a package of incentives for setting up of industrial units, which is comparable to other states. Besides, the special incentive package i.e North East Industrial and Investment Promotion Policy (NEIIP) declared by the Government of India for the North East Region is available to industrial units. Brief particulars of the incentives are as follows

State Package of Incentives
Capital Investment Subsidy @ 30% and additional
subsidy @ 2.5% for enterprises of ST, SC,
& women individuals on Fixed Capital Investment, f
or land and civil works subject to a ceiling of
Rs. 50 lakh per unit
Reimbursement of commodity tax for 5 years
subject to a maximum ceiling of Rs. 50 lakh PM
Procurement Preference @15% on purchases
by the Government
3% Interest Subsidy on term loans
Reimbursement of power charges for a period of
5 (five) years on an annual tapering basis with
a maximum of Rs. 12 lakhs per enterprise
10% State Transport Subsidy for a period of 5 (five)
years in the line of Central Transport Subsidy

Incentives declared by Central Government
Incentives to all industrial units located anywhere in the N-E Region.

Exemption of Excise Duty on finished products
Central Transport Subsidy
Income Tax Benefit
Capital Investment Subsidy
Interest Subsidy on working capital loans
Comprehensive Insurance Scheme for insurance
coverage. Subsidies to service sector,
bio-technology and power generating industries

Other Benefits / Strengths
90% subsidy on Air Freight from Agartala to Guwahati/ Kolkata, on transport
of fruits/fruit products for export
Tripura Industrial Development Agency (TIDA), as Single Window for facilitation
of necessary clearances and other assistance to entrepreneurs
Prompt and regular clearance of incentives and subsidy claims ?both State
and Central; State is up-to-date in payment/reimbursement of incentives and subsidies
State Level Committees for identification and facilitation of Food Processing,
Natural Gas, Information Technology and Export-oriented Projects
Transparent, efficient and responsive administration.

Glimpses of Industrial Units
Tripura has a great potential for investment. Tripura has witnessed tremendous development over the last few years in basic infrastructure as well as industrial infrastructure and has advanced to the top of the North East business locations in India.

The Bodhjungnagar Industrial Complex has been developed, adjacent to the state capital Agartala, on about 550 acres of land with all infrastructure facilities like, road, power, water, pipes natural gas etc. About 80% of the land has been allotted and Industrial Houses from all over India, specially, Delhi, Bangalore, Kolkata, Guwahati etc. have started their venture at Bodhjungnagar in a very short period.

The largest Latex Based Rubber Thread Unit has been set up by M/S DS Group (Investment ?80 crore), M/S
DP Group has set up a cold Steel Rolling Plant (Investment- 214 cr), TMT Bar unit, Cement plant, packaged Drinking water plant, ferric alum, Distillery, Agarbati manufacturing unit with marketing arrangement with ITC (Mangaldeep), Food products, ACC Conductors, PVC coated wires, steel & wrought Iron furniture etc units have already been set up. Breweries, ayurvedic medicine manufacturing plants, rubber based units etc are coming up. Investments to the tune of 500-600 crores have already been made. Investment proposals of another 500 crores are in the pipeline.Considering the demand of land at Bodhjungnagar, another 500 acres have been identified for acquisition and with this land it would be an integrated complex of about 1000 acres, the biggest model destination for investment in the entire north east. The Industrial Infrastructure Projects like, Growth Centre, Export Promotion Industrial Park, sector specific Rubber Park, Food Park etc have been set up. IT Park, Bamboo Park is coming up.

In terms of investment appeal, for example, with regard to the quality of human resources and infrastructure, Agartala, the state capital, is on a par with major Indian cities, or even surpasses cities in other North Eastern states. The State offers the finest in Infrastructure, excellent educational facilities, quality trained manpower, a professional work ethic and a conducive business environment. So it is not surprising that the investors are enormously interested in the city.