Mizoram Bamboo Development Agency

POLICY FRAMEWORK:-

1:1. The Industrial Policy of Mizoram State was first notified on 15.3.89 with a view to give direction to the strategies for industrial development of the State. While announcing the said policy statement, the Govt. of Mizoram took full cognizance of the Industrial Policy Resolutions of the Govt. of India announced during 1948-1956 and the amendments made thereof during 1973, 1977 and 1983. Policy resolutions were taken on 1989 with a sense of commitment to the people of Mizoram to improve the economy of the State and thereby bring about higher quality of life and happiness to the people of Mizoram.

1:2. While making the policy resolutions in 1989, the Govt. was fully aware of the objectives of the Central Govt. in regards to upgradation of technology, export promotion, balanced growth, broad-basing entrepreneurial skill and to improvement of technical skill for rapid growth of industries under a fast changing industrial scenario of the country.

1:3. The Industrial Policy of Mizoram 1989 laid stress on reducing shifting cultivation by encouraging a shift from primary to secondary sectors by way of developing rural industries like handloom and handicraft and village and cottage industries. Priority was assigned to agro-and forest-based industries, handloom and handicraft industries, sericulture industries and electronics industries. The policy, interlia, laid emphasis on even development of all sectors, large and medium, small scale, tiny, village and cottage industries. For rapid development of all these sectors, various kinds of supports like institutional, organizational and marketing supports, and schemes for infrastructure development and manpower development apart from initiating several state- level incentive schemes to attract prospective entrepreneurs were announced by the Government.

1:4. Industrial Policy of 1989, considering the nascent stage of development in the State laid accent on protection of the local small scale entrepreneurs in order to safeguard the socio-cultural and ethnic identity of the indigenous enterprise of Mizoram. Therefore, setting up of industries in the small scale sector by outsider was not allowed. However, investment from outside was allowed in medium and large scale industries in joint and assisted sectors.

1:5. Approach to industrial development in the State since then was based on the following resolutions of Industrial Policy of 1989.

1:5:1. Setting up of viable industrial projects in large and medium sectors through State-owned corporation.

1:5:2. Setting up of modern small scale industries at the level of private entrepreneurs by providing all necessary promotional supports with the help of incentive schemes.

1:5:3. Development and promotion of artisan-oriented industries like handloom and handicraft, village and tiny industries in rural areas by providing necessary supports like grant-in-aid, subsidies, raw-materials, shed, marketing and training facilities etc.

1:5:4. Development of infrastructure.

1:5:5. Manpower development.

1:5:6. Development of electronics Industry.

1:5:7. Strengthening of organizational set up.

1:5:8. Exploration and development of mineral resources.

1:6. The intention of the government of Mizoram while announcing its first Industrial policy was not industrial growth per se but was rather directed towards all round development in the interest of the indigenous people of Mizoram and towards giving them gainful employment and self-employment opportunities in the industrial and allied sectors.

1:7. As a result of a policy direction given during the 8th plan period, significant growth in small scale industries, increase in production, awareness amongst the local entrepreneurs to set up modern small scale industries, availability of technical manpower and improvement in basic infrastructure and agro based industries are now noticeable in the State. It has been observed that, though there is no lack of enthusiasm amongst the local entrepreneurs to go for hi-tech investment, lack of finance and lack of locally available resources are the main bottle-necks. Further, resources at the level of the government is also very limited to fund big projects through the public sectors undertaking.

1:8. In view of the continuing backwardness of the North Eastern Region, the Government of India vide its notification No.EA/1/2/96-IDP Dt.24th Dec.1997 announced New Industrial Policy for the North Eastern Region. This Policy aimed at encouraging investment in the industrial sector by announcing fiscal and other incentives for the purpose of overall economic growth of this region.

1:9. In view of the National Industrial Policy and the New Industrial Policy for the North Eastern region, the Government of Mizoram felt it necessary to announce a New Industrial Policy in the new millennium, 2000 for accelerated industrial and economic development of the State.