Special Supplement on Meghalaya

Meghalaya’s Growth Potential

– By Dr Arvind Kumar

The State of Meghalaya, having a geographical area of 22,429 Sq. Kms., is strategically located in the North-East region of India. It is bounded by Bangladesh on the South as well as partly on the West (international boundary about 443 Km) and surrounded on the other sides by Assam. Meghalaya mostly comprises hills and table lands, with the hills sloping gently towards Assam on the north but rather steeply and abruptly towards Bangladesh on the south. It boasts of small patches of beautiful valley land, fresh streams and rivers, forest cover and deep gorges. The State has predominantly three hill regions of Garo Hills, Jaintia Hills and Khasi Hills.

The State is richly endowed with natural resources and the heavy and long monsoon sustains intensive and varied flora. The total coal and limestone reserves have been estimated at 560 and 12000 million tonnes respectively. The deposit of industrial clay is about 71 million tonnes. Other commercially exploitable mineral deposits are Kaolin, feldspar, glass sand etc. besides rich deposits of Uranium. The hydro- power potential of the State is assessed at around 3,000 MW of which only 185.2 MW has been tapped so far.

The food grain and horticulture productions in the State during 2006-07 were 2.70 lakh M.T. and 3.97 lakh M.T. respectively. As on 31 December 2009, 3428 villages had been electrified constituting about 60 percent of the total number of villages in the State. The per capita consumption of electricity (2007-08) is 387.36 Kwh. During 2008-09, 55 lakh tonnes of coal was produced, of which 9.53 lakh tonnes was exported. Limestone production during 2008-09 was 39 lakh tonnes, of which 18.80 lakh tonnes was exported. The total revenue collected on coal and limestone during 2009-10 was Rs. 130.00 crore.

The literacy rate of Meghalaya as per 2001 census was 62.6 percent (male 65.4 percent and female 59.6 percent). The literacy rates for rural and urban areas are 56.3 and 86.3 percent respectively. As of 2006-07, there were 3 primary schools per thousand population, 9 middle schools per ten thousand population and 33 high and higher secondary schools per lakh of population. The teacher-pupil ratio stands at one teacher for every 34 students at the primary school level, 21 for middle school level and 16 for high/ higher secondary school level. There are 16 urban centres in the State with a population of 4.54 lakhs constituting over 19 percent of the State’s population. The decadal growth rate of urban population is 37.59 percent as against the State’s decadal population growth of 30.65 percent. Urban poor constitutes about 22 percent of the total urban population. Out of the total habitation of 9236 in the State, 4192 habitations or 45 percent of the total villages have been fully provided with potable drinking water.

Economy

On the State’s income side, the Net State Domestic Product at current prices increased from Rs. 4309.78 crores in 2002-03 to Rs. 8580.13 crores in 2008-09 (Adv. Estimates) and the corresponding per capita income increased from Rs. 18208 in 2002-03 to Rs. 33674 in 2008-09. The Net State Domestic Product of the State at constant (1999-2000) prices was Rs. 3759.38 crores in 2002-03 and increased to Rs. 5878.10 crores in 2008-09 (Adv. Estimates). The per capita income at constant (1999-2000) prices during 2002-03 was Rs. 15882 and increased to Rs. 23069 during 2008-09.

Regarding the Sectoral Income Distribution of the State, the estimates of Net Domestic Product reveal its changing sectoral scenario. The contribution of the agriculture and allied sector to the Net State Domestic Product is gradually declining from 23.96 % in 1999-2000 to 20.41 % in 2008-09 (Advanced Estimate) while the contribution of the industrial sector has shown an upward trend from 21.09 % to 31.57 % during the same period. The contribution of the services Sector to the Net State Domestic Product has also declined from 54.95 % in 1999-2000 to 48.01 % in 2008-09 (Advanced Estimate). The table below indicates the percentage contribution of the three sectors to the NSDP over the last few years :-

[Source: Dte. of Economics & Statistics, Govt. of Meghalaya]

Meghalaya has to a large extent high dependence on primary products. Around 70 per cent of the population in Meghalaya is engaged in agricultural and allied activities. However, the contribution of agriculture to the State’s NSDP is around 20 percent only as against the contribution of around 52 percent by the tertiary sector and 27 percent by the secondary sector. With the increase in population over the years and the decrease in availability of land for agricultural purposes, the incidence of landless labour and the resultant poverty has risen substantially.

Besides having a low per capita income of Rs. 18944 (Adv.) during 2006-07 at constant 1999-2000 prices against a national per capita income of Rs. 20813 (Adv.), Meghalaya’s relative backwardness is also evident in the manner of exploitation of its natural resources and exportation of the same to markets outside the State mostly in primary form thus losing the economic benefits of value addition. In the three decades of its existence, Meghalaya has witnessed tremendous uneconomic and unscientific exploitation of its natural and mineral resources. This has to change. Every effort has to be made to process the tapped resources and add value within the State itself and to export the same in the form of finished and semi-finished goods so as to bring about an improvement in the State’s economy and to open up employment opportunities for the people.

Employment Opportunities

On the Livelihood Improvement front, generation of employment, particularly in the rural areas is one of the State’s top priorities. There is a great potential in Meghalaya for creation of jobs in the rural areas in the fields of post harvest management, agro processing and tourism. There is a need to increase employment in non-agricultural sector and rural non-farm sector with development of clusters round towns/ market centres. The State Government has set up the Meghalaya Rural Development Society (MRDS) under the Livelihood Improvement Project for the Himalayas, funded by IFAD, since 31st October, 2005 with the following objectives – (i) enhancing the capabilities of the local people to select appropriate livelihood opportunities; (ii) increase incomes through more sustainable farm and non-farm income generating activities; (iii) establish effective and appropriate delivery systems for technical, technological and financial Business Development Services (BDS) inputs and services including maintenance of assets and resources; (v) enhance the delivery of government services and capabilities of eligible local people to access them. The Project covers 5 districts, 15 blocks and approximately 610 villages. It envisages to mobilize about 1955 SHGs. The total project cost is Rs. 172.14 crore, of which 48 percent is funded by IFAD, 14 percent by the State Government, 27 percent from Institutional Finance and 11 percent in the form of beneficiary contribution.

Learning from the experiences gained from the implementation of the watershed based and Self Help Group (SHG) based approach on livelihoods under North Eastern Region Community Resource Management Programme and Livelihoods Improvement Programme assisted by International Fund for Agriculture Development (IFAD), the State Government is proposing coverage of all areas of the State under livelihood improvement programme of the Ministry of DoNER under the World Bank aided North Eastern Region Livelihood Programme (NERLP).

Regarding Skill Development & Human Resource Development, the State Government recognizes that there is an urgent need to upgrade skills of the youth to enable them to stand on their own feet and become employable. Human resource development and capacity building of existing manpower in government and non-government sector would be encouraged. Assistance would be sought for the introduction of Human Resource Development programmes through provision of vocational education avenues including diversified training for skill development and generation of employment opportunities, especially in the rural areas. Further, the 11th Plan document of the Planning Commission indicates that the Government of India is keen on the use of Information Technology including Information & Communication Technology (ICT) tools in the delivery of education and other social services and, in particular, the finishing schools to impart IT and other skills. The State Government will be approaching the Central Government for assistance in establishing of an Indian Institute of Information Technology (IIIT) at Shillong. Further, the Skill Development Programme and funds available from the Government of India would be leveraged.

Mineral Resources

Meghalaya with its wealth of mineral deposits is a storehouse of industrial potential. There are extensive deposits of coal, limestone, granite, clay and other minerals.

Estimated Reserves of Minerals in Meghalaya

Potential Mineral Based Industries

Based on the availability of minerals in Meghalaya, there is enhanced scope of establishing a number of industries, especially for cement, lime and hydrated Lime, precipitated and activated Calcium Carbonate, bleaching powder, Acetylene Black , Formed Coke , Low-temperature Carbonisation Plant, Coal briquette and high temp. Carbonisation Plant , Low Ash Coke, Generation of Producer Gas, Low-tension/high tension insulators, switches, cutouts etc. , Wall/Floor tiles , Earthen-wares (crockery, novelties etc) , Stone wares (sanitary wares etc.) , Fire bricks , and Aluminum Sulphate.

Agri and Horticultural Resources

Meghalaya produces substantial quantities of oranges, pineapples, peaches, pears, plums, guavas and bananas of superb table variety Cashew. Meghalaya also grows plenty of potatoes both in summer and winter and produces little over 1.46 lakh metric tonnes of potatoes.

MAJOR AGRO & HORTICULTUREAL RESOURCES (figure in MT)

In view of Meghalaya having vast agro and horticultural resources, there is ample potential for development of food and fruit processing industries, particularly in Mushroom cultivation and processing, tea processing, fruit processing, Ginger dehydration and ginger processing plant, Cashew nut processing, Spice oleoresins, Tomato based products, Starch and starch-based products, Processing of potato into potato chips, Manufacture of industrial alcohol from tapioca/maize and potato tubers, Soya milk, Slaughterhouse and meat processing plant, and Setting up of a poultry centre for production of 10 million eggs and 1 million broilers.

Tourism

Meghalaya can rival any resort in the country through the beauty and charm that nature has bestowed upon the state. It has been described by eminent visitors and travelers in gushing praises – ” A brave romantic dream”, ” A patch of beauty and grace” and “A dream child…. a bright a scion in the fabric of Indian polity”.

Undoubtedly Meghalaya is all of the above and more; for it has a climate that welcomes visitors almost all the year round. Besides, the lovely waterfalls, lush-green landscape, scenic lakes, and building ranging from the quaint to the imposing would instill in any tourist a sense of wonderment. There are also traditional festivals at different times of the year which add to the colour and charm of the State.

Meghalaya also offers many adventure tourism opportunities in the form of mountaineering, rock climbing, trekking and hiking, water sports etc. The state offers several trekking routes some of which also afford and opportunity to encounter some rare animals such as the slow Loris, assorted deer and bear. The Umiam Lake has a water sports complex with facilities such as rowboats, paddleboats, sailing boats, cruise-boats, water-scooters and speedboats.

Meghalaya subtropical forests support a vast variety of flora and fauna. Meghalaya has 2 National Parks and 3 Wildlife Sanctuaries. The promiinent tourist places are: Balpakram National Park, Siju Cave, Mir Jumla’s Tomb, Umiam Lake, Sohra in Cherrapunjee, Thadskeing Lake, Naritang and Wa Dagokgre.

Well-concerted planning, conservation of natural reources and development of scenic beuaty sports can be focus of attraction. It can attract tourists from neighouring states as well as from Thailand, Bangladesh, Nepal and even Western countries.

Hydropower Potential

The river basin of Meghalaya has a potential of about 3,000 megawatt of hydro-power. The State of Meghalaya is directly influenced by the south-west Monsoon. The average annual rainfall is 6,000 mm. All the rivers of Meghalaya are monsoon fed. The rain water flows down the rugged slopes and narrow valleys and descends rapidly to the plains of Assam and Bangladesh creating extremely favourable conditions for harnessing the hydro-electric power.

Presently the generation, transmission, transformation and distribution of electricity is done by the Meghalaya Energy Corporation Ltd (MeECL) earlier known as Meghalaya State Electricity Board (MeSEB). The generation of power in the State is all hydro. There are six power stations with a total installed capacity of 186.70 Megawatt (MW).

Potential for Industries

Availability of minerals, agri and horticultural resources as well as hydropower, the scope of establishing industries in the state is very vast. The idustries identified as thrust areas inter alia include: Agro Based Industries, Horticulture Based Industries, Bio-Technology Based Unit, Tissue Culture & Orchid Units, Spices Oleoresin & Other Essential Oils, Medicinal Plant Plants Based, Tea Processing, Rubber Processing, Meat Processing, Mineral Based Industries, and Electronics & IT and IT Related Activity

In a way, Meghalaya entails all potentials of becoming Singapore of North-East India.