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NITM
1. Manthan Topic: Sunrise States:
Realizing the growth potential of
North-East
Identifying Potential
Industries and Grooming
a Self Sustaining System.Team Details :
1. Saikat Chakrabarty
2. Sunasheer Bhattacharjee
3. Robin G. Thomas
4. Kumar Deep Barman
5. Jeffrey Anurag Modak.
2. The North-East India has witnessed
tremendous growth in population in the last
few decades
• Increase in Population,
Increase in
Unemployment.
• Inadequate Industrial
ventures.
• Higher Dropout rate
than the rest of the
country.
• Less trade between the
neighboring countries
and the region.
Barriers to the development of North-East
India
The potential industries of North-East India can be identified and reshaped to boost
the Indian economy
3. Black tea a cash crop
India is the largest producer of black tea in
the world.
North Eastern states contribute around
54% of the total Tea production in India.
4. Primary Marketing Chain of Tea
• Producers of tea may be (a) small growers
or (b) big tea estates (according to Tea
Board, producers having up to 10.12
hector of area under tea cultivation are
treated as small growers and beyond that
they are called big tea estates).
• Small tea growers use to sell their tea
leaves to the collectors or the buying
centers.
• They give it to Bought Leaf Factory (BLF)
for further processing as small tea growers
are not equipped with processing factory.
• On the other hand most of the big tea
estates have their own factory. Tea
generally moves directly from factory
either to auction center for sale or to
direct sale to national or international
buyers.
5. Problems in Guwahati Tea Auction
Centre
• In GTAC only a few buyers have been
dominating in purchase of tea.
• Only a small quantity of orthodox tea
is sold through the auction centre.
• The sales sub-committee formulated
the procedure to regulate the sale of
tea by restricting the quantity offered
for sale so that there will be sufficient
amount of tea to be auctioned
throughout the year.
• It is also observed that at the GTAC
very small number of foreign buyers
and exporters has been participating
in trading activities.
Recommended Solution
• There are a lot of small tea producers
in the region & though they produce
some of the finest quality of material
, they still run in loss. This is due to a
large number of middle man involved
in the process. One to one service
through a centralized vendor is the
need of the hour. The centralized
vendor will charge a fixed
commission for providing the service.
The industry can also improve
through its promotion by giving tea
samples to the tourists as souvenirs.
In this way, the tea industry will gain
popularity not only within the
country but also pave way for an
increased export of tea to the five
countries with which the North East
region shares its border.
6. Road Transport..the prime form of
transport in the region.
• Because of the hilly terrain, the Indian railways
(which is else considered the prime form of
transport) have failed to garner a respectable
share of transport services in the region.
Monitored centrally.
• This difficult terrain limits the rail network
expansion, and the only state with a decent rail
network is Assam.
• At present, there is a network of only 2,447 km
in the entire region which accounts for four per
cent of the national network. Of the total railway
network, about 97 per cent is in Assam and two
per cent in Tripura.
• Only 10 working airport in the region, Meghalaya
does not have a single working-commercial-
airport at present.
• East-West Corridor, 3,300 kilometres, grazes
through a major part of the region, connecting
important places like, Dispur, Dabaka, Lumding,
Silchar, Moreh via Jiribam and Imphal, and from
Nagaon to Still Well Road via Jorhat, Dibrugarh,
Tinsukia and Ledo.
7. Proposed solution and Impact of the
solution :
• The key idea is to connect the interested
transport vendors through internet, or
telephonic registration or bookings. Wherein,
tourist or any other person may avail the
service.
• In this , not only the regular tourist vehicle but
any one can rent their vehicle for a particular
time period, the cooperation being the
guarantor & a driver level employee of the
corporation shall drive vehicle . Thus be
subjected to pay for the maintenance cost &
other vehicle based costs.
• A situation: example a person may not need
his/her vehicle for a week, say , that person is
out of station or say someone has more than
one vehicle & he does not need all of them
simultaneously. When out of station, the
security of the vehicle is also a matter of
concern. Now s(he) rents the vehicle to the
corporation, being relaxed, since there is a
guarantor & earns a handsome amount. It could
also be done on a daily basis.
• This leads to income generation for both the
parties, The vehicle vendor as well as the
corporation, & the corporation does not have to
invest for purchasing vehicles.
8. Construction..micro to macro.. Proposed solution and
Impact of the solution
• All the major construction projects in the region are
either dominated by major private players or the
government. For example:
* Communication based infrastructure ,
construction of Border Fencing and Road worth crore
taken up by ASB Pvt. Limites, a New Delhi Based
Private player.
* Construction of Rs. 400 Cr. NIT Nagaland
permanent campus by Hindustan Prefab Limited.
* Construction of Phase I of the permanent campus
of NIT Meghalaya by Public Works Department..
• The local groups create disturbances since they feel
that an outsider has taken over an opportunity which
could have been theirs. As in the case of the the
construction of East- West corridor, one of the reason
why the project got delayed in the region was due to
periodic disturbance by local group.
• The key idea here is not to start another construction
company, but rather, to inculcate skilled civil work
personnel as a part & parcel of the corporation,
centrally monitored, wherein they run their own
company, right from participating in tender submission
for such civil works to the end result.
This commercial arm will be a registered association.
The association headed by a person, (unlike a private
owner) will centrally monitor the administrative
responsibilities.
9. Giving the tourism industry a new mould to increase revenue.
•North eastern parts of India largely unexplored.
•Connectivity, lodging, unavailability of skilled tourist guides are some of the reasons for not being popular among
domestic as well as international tourists.
•Local people made into tourist guides who serve tourist parties and cater to their needs which include lodging,
cooking and language of conversation based on tourists’ choices.
•Availability of a limited number of hotels in the region creates a problem for lodging. Here the local village people
can come in handy & provide paying guest service. All these will be controlled by a central network, wherein a
person can book all these in a centralized way. Cost of expenditure in the region is quite low, hence it will also
generate profit.
• Operations will be controlled by a centralized organization which would provide travel packages to the tourists.
•Large share of the revenue generated would directly be received by the local tourist guides with almost negligible
involvement of the middlemen.
•Employment would increase by manifold.
•Tourists can book their packages online where they will be offered with a catalog which would allow them to
choose from an inexhaustible list of holidaying destinations.
•Tourists may select these destinations and include them in their travel packages and will be charged according to
the number of destinations they select.
•On selecting a particular destination, a list of guides would appear having expertise in areas such as languages they
speak proficiently, food they cook, etc.
•Tourists will be provided with a flexible travel package altogether.
10. Conclusion:
• A middle class person in general my not want to move out of his
comfort zone. The whole idea of the presented plan is not to start a
new privately owned company, rather a corporation based on
mutual ownership, which may be headed by a suitable individual or
a board. The idea essentially creates job. And thus, as a result of Job
creation, needless migration of the people from this region may be
prevented. Hence also improving the socio economic condition of
the region as a whole.
• The Net profit of the business corporation may be directed for
social cause thus making a small scale social project project self
sustaining. An open-skill development oriented open school would
best fit into the situation. Since the drop out rate of the region is
quite high, this skill development oriented open school could
contribute in. The targeted skill development training may be based
on the specific type of skill requirement of the cooperation. This will
result in identification of talent, grass root level innovators from the
north eastern part of India .
11. Conclusion:
A middle class person in general my not want to move out of his comfort zone. The whole
idea of the presented plan is not to start a new privately owned company, rather a
corporation based on mutual ownership, which may be headed by a suitable individual or a
board. The idea essentially creates job. And thus, as a result of Job creation, needless
migration of the people from this region may be prevented. Hence also improving the socio
economic condition of the region as a whole.
The Net profit of the business corporation may be directed for social cause thus making a
small scale social project project self sustaining. An open-skill development oriented open
school would best fit into the situation. Since the drop out rate of the region is quite high,
this skill development oriented open school could contribute in. The targeted skill
development training may be based on the specific type of skill requirement of the
cooperation. This will result in identification of talent, grass root level innovators from the
north eastern part of India .
Reference:
Dutta, Arup Kumar (2002). Indian Railways, the final frontier: genesis and growth of the
North-East Frontier Railway. Guwahati: Northeast Frontier Railway. LCCN 2003308231
http://www.asthabharati.org/Dia_Jan%2005/n.p..htm
http://www.downtoearth.org.in/node/8495 https://www.teaauction.gov.in/Home.aspx#
http://assamteaxchange.com/