Falcon Invoice Discounting Setup for Small Businesses
Avant-Garde
1. North East Profile
• Extraordinarily diverse mosaic of ethnic groups.
• Richly endowed with bio-diversity, hydro-potential, minerals like oil and natural gas, coal.
• Over 10 per cent of forest products requirement in the country are met from this region only.
• The region has a very high potential to generate hydropower. Arunachal Pradesh alone is expected
to generate 2,67,474 MW i.e. 30 per cent of the total available in the country.
• Varied geo-climatic condition, the region is ideally suited for horticulture, floriculture and other
plantation crops.
• Largest tea producer in the country contributing over 95 per cent of the total production.
2. Problems
Poor Geo-
political
condition of
the region
Poor
Governance
Inadequate use
of Resources
Poor
Infrastructure
Unorganized
Handloom Sector
Unemployment
• Government machinery is on the brink of collapse.
• Corruption, squandering of public funds.
• Deteriorating law and order.
• Lack of transparency and accountability.
• Discontent & widespread criticism.
• Public uprising either for sovereignty or for
separate homeland.
• Kidnapping, extortion, killing, bandh, strikes and
curfews affecting growth.
• Geo-political condition, including ever-deteriorating law and order, which has
a lot of implication on the development of must needed infrastructure.
• Lack of FDI inflow in the region.
• Inter-state conflict.
Major Problems
• Inadequate Export Logistics.
• Lack of Finance.
• No degree level textile college and no silk
Institute.
• Non availability of quality yarn ,no brand.
• Border Infiltration
leading to increase in
population.
• Underdeveloped Private
Sector.
• Harnessing the full potential of the
tea industry.
• Only 3.4% Utilization of available
land resources.
• Inefficient use of Hydroelectric
power resources.
3. Recommendations
Strength
•Home of All 4 types of silk.
•60% of country’s total weavers.
weakness
•No degree level textile college and no silk Institute.
•Non availability of quality yarn ,no brand.
Opportunity
•International Border and No major competition.
•Export Trade can help increase potential to create a Brand name for home-grown products
•Government of India Assistance and products non Taxable.
Threats
•Scattered and Unorganized sector ,man Power Retention
•Hard labor and Low Income, low earning per unit space.
1. Approval of
concept by
officer incharge.
2. Sub
Committee
members
3.Selection of
weavers from
each state by sub
committee.
4.Construction
of the Village
/Hub.
5.Production
Setup.
6.Finishing/
Quality check
/Packaging.
7.Quality
linked Pricing.
8.Participation in
International
Exhibition with a
brand.
9.Buyers sellers
meet outside
the state/
country.
10.Inviting
Buyers to the
HUBVillage.
11.Business
Deal
12.Building
Long term
relationship.
Rural Enterprise Model
4. Proposal-To develop a microfinance organization and community
development Bank.
• To Promote financial independence by giving micro-credit loans to the
impoverished without collateral.
Objective
• Loans provided are better than charity to tackle poverty: they offer
people the opportunity to take initiatives in business or agriculture,
which further provide employment opportunities and revenue.
Principle
Belief
• Belief that people have endless potential, and unleashing their creativity
and such initiatives help them tackle poverty and ultimately lead to
prosperity in the region.
Govt.Initiative
•RBI can ask well established Banks in the region to promote this
model.
•Money lend by RBI at lower Repo Rates than market rate.
•Land would be leased to banks at lower rates.
Identification
of cells or
region
•A special research team set out to explore regions in each of 8 states in
north east India to Identify high-growth opportunities.
•Personal Interaction with people will help build trusty-worthy relations.
5. • Once a neighborhood is identified a bank is setup for that neighborhood
• Targeting region with population of (20,000-1,00,000)with a target customers of
around 5000.
• There will be Seven to ten employees per Bank which Includes-
• Branch Manager
• Cashier
• Adviser/Accountant.
• Lobby Manager.
• Sales Manager.
• Administrative Clerk.
• Customer Service Representatives(2 to 4).
Bank Setup
• Group of 4 to 5 persons. Smaller size helps form a stronger relation ship between
individuals and would bail out each other during emergency.
• Every group must have at least one women member so that women empowerment
would increases and brings diversity within the group.
• Money would be paid by each person in the group weekly and the amount to be paid
depends on the proposal of work put forward.
• Banks would initially not take money for 3 months and just monitor their work closely
building a sense of trust among them.
• After 3 months if any person or group defaults, then there would be non issue of
loans in future or the entire group is penalized.
• To prevent non issue of loans if one person is not able to pay then the others can give
their share and prevent group from defaulting.
Group Based Credit
system
6. 54%
46% North East Region
Other Regions
Largest Tea Growing and Producing Region
• Requires Modernization in techniques of plantation and infrastructure
as it is a major source of employment (10.4 %) in the region.
• Development of small tea growers which consist of major chunk
of tea producers.
• Access to modern fertilizers and pesticides for the protection of
tea crops and to improve the productivity.
• Emphasis on organic processing and cultivation of tea to reduce
the amount of pollution, cope with the inadequate power supply
and improve the quality of tea .
• Effective implementation schemes such as Special Purpose Tea Fund
(SPTF) through continuous monitoring by the Central Government.
TEA INDUSTRY IN NE REGION
Not selling tea at auctions at
low prices to large private
companies from which they
derive huge profits simply by
packaging and selling at a
much higher price.
Carrying out ‘Niche Marketing’
and establishing a brand of its
own like “Assam Tea” which is
better than it being sold in the
name of ‘XYZ Tea’.
Packaging tea as per global
standards at local or state level
with the assistance of
Government.
7. •Investment in irrigation
capacity.
•Improve fertilizer quality.
•Low ground level credit.
•“Shifting” Cultivation.
•Use agriculture potential to
maximize border trade.
•Implement Integrated farming
system using “pisci culture”.
•Need for irrigation to develop
production.
•Nature of terrain in the region
makes irrigation a must for tea
& horticulture crop cultivation.
•Drip irrigation ensures constant
water supply.
•Region has a drip irrigation
potential of 1M ha.
• High dependence on
agriculture.
• Low levels of modern
input
• Use of traditional farming
techniques.
• Lack of farm
mechanization.
• Low level of productivity.
• Poor infrastructure
• North East India receives
an average rainfall of
2000mm.
• Region has a dense
network of drainage
channels with 7 river
basins.
• Growing Industrial-
Commercial Economy
increasing demand of
agricultural products.
Key Facts Problems
SolutionsProspects
Agriculture in North East India
State Crop
Sikkim Orange,Vegetable,Floriculture
Assam Tea,Vegetable
Nagaland Floriculture,Pineapple,Vegeta
ble
Meghalaya Pineapple, Floriculture
Tripura Rubber, Oil Palm, Vegetable
Arunachal Pradesh Kiwi,Orange,Vegetable,Pear,R
ubber
State Drip(ha)
Arunachal Pradesh 613
Assam 300
Meghalaya 16
Manipur 341
Mizoram 124
Nagaland 816
Sikkim 23460
Total 25270
Drip potential for different crops
Area Coverage under drip
8. Tourism: Key Facts
1. Assam boasts of famous wildlife preserves ,Fauna: Great Indian One-Horned Rhinoceros, the largest river island Majuli, (largest
river Island in the World).
2. Manipur: The beautiful and seasonal Shirui Lily , Sangai (brow antlered deer) and the floating islands at Loktak Lake are few of the
rare things found in Manipur.
3. Cherrapunji in Meghalaya once the wettest place on earth.
4. Arunachal Pradesh is considered to be the "nature's treasure trove“.
In spite of the positive points , none of the states in the North East finds itself in the “Share of top 10 states of India in number of
foreign/domestic tourist visits in 2011”.
Proposed 6 S Model for Tourism
A : SWAGAT(HOSPITALITY)
B : SOOCHNA(INFORMATION)
C : SUVIDHA(FACILIATION)
D : SURAKSHA(SECURITY)
E : SAHYOG(COOPERATION)
F: SANRACHNA(INFRASTRUCTURE)
9. A
CF
B
E D
INITIATIVE
RESULT
POLICY
PLANNING
• Five Star Hotel Accommodation: North East Government have
their work cut out when it comes to attract Hoteliers to have their
five star bases in the States. The same has to proposed, giving
the Hoteliers incentives or even providing special economic
zones.
• Home stays: An Unique concept can be implemented where
tourists are provided accommodation in the locals’ houses, which
takes the experience of heritage and culture to a whole new
level.
• Facilities at Tourist Location: Specific care has to be taken to
maintain hygiene, sanitation and “Pay and Use” Toilets.
Trained Tourism Police: Trained Police force catering to
the security of the Tourists have to be deployed.
• Co-ordination and Co-operation: All bureaucrats and Councils
responsible for tourism has to work in co-ordination. Role clarity at
every levels have to be maintained.
• Co-operation with other States
• Certification of Tourism products and services has to be efficiently
done.
• Basically the Infrastructure is
the role of the Govt. So
following steps has to be
taken: "A Proper VISION”
• Proper Financial Planning
• Central Assistance
• Strategic Planning
• Private Sector Participation.
• Timely Information: Tourist Information Centre, Railway Stations, Central Bus
Station(ISBT in Guwahati),Major Metropolitan Cities
• Positive Involvement of People: Awareness on the part of the people through
creation of “Tourism Clubs” actively monitored by Government.
• Training: Training of People as Tourist Guides using Government sponsored
Training Programs.
• Crafting Memorable Experience : Creating Everlasting Experience for the
tourists.
• Marketing: Focused Marketing efforts has to be directed at the media and Tour
Operators. Fund allocation has to be judicious in this regard the role of the
Government is very Important.
• Building the Brand North East: Brand Slogan should creatively designed in order
to portray the right Image . Participation of the Tourism Boards on International
Platform also has to be given proper Incentives.
• Attractive and Dynamic Websites: The E-commerce should be dynamic. One to
One Interaction with International Tour Operators should be organized.
6 S Model
10. Hydroelectric power in North East
Potential
Arunachal Pradesh – Future Power
House.
43% of India’s Hydro potential.
Only 2% utilized
Can generate Rs 10,000 Cr every
year
Problems
Indo-China discord
Erratic weather
Difficult terrain
Local insurgency
Land acquisition and environment
clearance
Anti-Dam projects.
Possible Solution
North east may continue to
remain a pipedream, unless
the Indian government is able
to tame the mighty dragon
and push through a clear
water sharing agreement for
the Brahmaputra.
Utilizing the U Bend (called the
“Big Bend”)in the
Brahmaputra between Tibet
(China) and Arunachal Pradesh
in India for mega scale
hydropower development.
Cross border energy trade.
Increasing private investments
for development of
hydropower.
State Hydro Power
Potential
Arunachal
Pradesh
50328
Sikkim 4286
Meghalaya 2934
Mizoram 2196
Others 4053
Total 63257
11. Conclusion
With its rich biodiversity and immense natural resource wealth, the Northeast is a region the country should take
pride in.
Certain constraints faced by the NER, both natural and man-made, have contributed to the economic
backwardness of this region.
Concerted efforts are warranted to address the issues confronted by the agricultural sector since a substantial
share of the population depends on this sector for its livelihood.
A well-focused plan which factors in local strengths must be formulated and implemented to improve farm
productivity, promote high-value agriculture, encourage contract farming.
Strengthen rural infrastructure with the help of public private partnership such as roads, hydro-power generation,
irrigation structures and communication networks.
The potential of the NER for tourism and to be a major trading hub of the East needs to be judiciously developed
to make this region a net contributor to national growth.
References
ASCI Journal of Management,2008
Report of the working group on Agriculture Development in Eastern and North Eastern India.
Conflict in Northeast India: Issues, Causes and Concern By Philipp Heimerdinger & Tshering Chonzom.
Report on Northeast India by Fincomindia