This was a presentation that my friend Yatish Rajawat and I prepared in July 2014 for General VK Singh, who was at that time, the minister for NE Development. It argues that the NE doesn't need subsidies, but better marketing.

1. Marketing the North East Better
PRESENTATION TO
GENERAL V. K. SINGH, MINISTER, DONER
BY
YATISH K. RAJAWAT
HARSH SHRIVASTAVA

2. Many “schemes” for the NE
 They give various subsidies to lower the cost of
production
 Transport subsidy
 Income-tax subsidy
 Etc.
 Yet, lower cost of supply hasn’t resulted in increased
sales of most NE products outside the NE
December 11, 2014
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Yatish K. Rajawat and Harsh Shrivastava

3. Change the paradigm: Promote demand
 NE’s products, services, destinations, and people
should be marketed better
 This will create demand
 Demand will automatically create its own supply
 Rather than one more scheme, create a company that
has the mandate; the capital; and the flexibility to do
many things simultaneously to promote the NE
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Yatish K. Rajawat and Harsh Shrivastava

4. North-East Trade Promotion Organization
 NETPO—modeled on the lines of the India Trade
Promotion Organization (ITPO), which manages Pragati
Maidan.
 Also, like MMTC and STC, which sold Indian
commodities to foreign buyers.
 Meghalaya is also setting up a similar, Meghalaya Trade
Promotion Organization
 Like NEEPCO, North-East Electric Power Company,
NETPO, will be a PSU.
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Yatish K. Rajawat and Harsh Shrivastava

5. What will NETPO do?
 Advertise NE products in relevant target channels (food
in specialty magazines and trade fairs; clothes in
fashion shows).
 Train NE businesses and governments on the basics of
marketing, branding, packaging, etc.
 Run advertising campaigns for tourism promotion
(Incredible India campaign).
 Negotiate with large retail chains about sourcing
products—on behalf of states and cooperatives
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Yatish K. Rajawat and Harsh Shrivastava

6. What else will NETPO do
 Invest in physical markets that sell NE products and
services in metros outside Delhi
 Delhi, already has State Bhawans at Baba Kharak
Singh Marg
 So, in Ahmedabad, Bangalore, Chandigarh, Hyderabad,
Mumbai, and Pune (to start with), there will be a
NETPO-owned building that will:
 Have shops and stall to sell NE products
 Tourist counters
 Meeting rooms for business negotiations
 Area for cultural performances or places for NE young
people to meet.
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Yatish K. Rajawat and Harsh Shrivastava

7. How will NETPO be structured
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 As a CPSE, wholly-owned by DONER
 Later, each NE state can be given an equity stake
 With the freedom to hire a CEO and a team that will
execute on the vision of professionally marketing and
selling NE
 Its board will have
 Secretary, DONER as chairperson
 Two JSs of DONER
 Two Principal Secretaries, Planning of NE states
 Two private independent directors
 The CEO
Yatish K. Rajawat and Harsh Shrivastava December 11, 2014

8. How will it be funded
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 To start with, a token allocation of Rs. 10 crore can
come from DONER.
 Next, 1 percent of the money that accumulates every
year into the non-lapsable pool should be transferred
to NETPO as capital.
 Renting out the physical infrastructure that it will own
in different cities.
 Charging a transaction fee for arranging large
commodity purchases
 In three years, NETPO should earn enough to recover
its operating costs.
Yatish K. Rajawat and Harsh Shrivastava December 11, 2014

9. Next steps
 A cabinet note should be prepared
 Yatish and Harsh, assisted by a JS from your ministry
will complete this.
 On cabinet approval, the company should be
incorporated
 Yatish and Harsh will serve as its independent
directors
 The search for a professional CEO should start
 The detailed business plan for the next two years—and
the next six months—should be finalized.
 All this should be done in time for the PM’s August 15
speech.
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Yatish K. Rajawat and Harsh Shrivastava

10. What we want you to do
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Issue a directive to your ministry
 “Minister, DONER has desired that NETPO will be
incorporated by August 15”
 NETPO’s objectives, structure, funding are given above.
 “…, Joint Secretary to work with Yatish Rajawat and
Harsh Shrivastava, who will serve as independent
directors of NETPO, to prepare the cabinet note for
approval by Minister by July 15—and to be placed for
the next cabinet meeting after July 15.”
Yatish K. Rajawat and Harsh Shrivastava December 11, 2014

11. Let’s use a new approach to
promote the NE
YATISH K. RAJAWAT
HARSH SHRIVASTAVA