1. TOPIC:- THE SUNRISE STATES
Realizing the growth potential of North-East
UNLEASHING THE HIDDEN POTENTIAL
A novel process to use resources and create brands and employment opportunities
Team: Rohit Agrawal
Rohit Ranavat
Shikhar Jain
Nikhil Parasampuria
Malhar Aras
College:- BITS Pilani - K.K. Birla Goa Campus

2. PROBLEM- MIGRATION
• Over 4,14,850 people from Northeast India
migrated to mega cities of the country during
2005 and 2010. It is 12 times growth as only
34,000 people had migrated during 2000-05
• Main reason is lack of education and
employment opportunities.
• At current trends it is predicted that in the
decade of 2011-2021 there will be only 2.6
million jobs for 17 million job seekers in the
North Eastern Region.
MIGRATION
432367
650489
1111680
1981 1991 2001
Total Out-Migration from North Eastern Region
Total out-migration Linear (Total out-migration)
Linear (Total out-migration)
41.73 37.29
14.71
46.33
61.79
78.74
0
20
40
60
80
100
North Central zone NER East zone West zone South zone
Employment in Organised sector(in lakhs)
Employment in Organised sector(in lakhs)
1

3. PROBLEM- LACK OF SKILLS & UNEMPLOYMENT
96%
80%
75%
68%
10%
0%
20%
40%
60%
80%
100%
120%
Korea Japan Germany UK India
Percentage of workforce
receiving skill training
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
North South West East
Govt. and Pvt. ITI’s in India
Seating capacity (Govt. Seating capacity (pvt) Total
• Alarming situation throughout India.
• Only 2% recieve formal training and 8%
informal training.
• Lack if adequate number of skill
development centers forces migration
Interestingly the North Eastern States enjoyed the
highest per capita investment by the Centre, averaging
INR 2,574.98 against the all-India average of INR
683.95
Thus the revenues have to be spent in a manner to
ensure inclusive growth and create socio economic
development
2

4. PROPOSED SOLUTION - OVERVIEW
Linking these
centres with
industries and
creation of SEZ
Supply Chain
management
Skill
Development
Centres(SDC)
• Skill Development Centres (SDC) shall be setup
• This shall be done through public private partnership
• The courses shall range from 2 months to 6 months
• The people of North East shall acquire skills here
• The government will create Special Economic Zones( SEZ ).
• Each SEZ shall have government workshops.
• Private companies shall also setup workshops/small industries.
• The pvt. companies who had earlier setup SDC shall receive
incentives from the govt. while setting up workshops/small
industries in SEZ.
• After acquiring skills from SDC, the people of North East shall
get employed here.
• The government run workshops in SEZ shall also have its own
Supply Chain Management
• It shall follow a Business to Business to Customer model
(b2B2C)
• Thus this shall lead to creation of brands of products in North
East
Setupof
SDC
SetupofSEZandLink
withSDC
SupplyChain
Management
3

5. THE SKILL DEVELOPMENT CENTRES(SDC)
CURRENT SCENARIO- National Skill Development Centre(NSDC) Setups
0
50
100
150
200
North South West Central North East
1%11%
59%
1%3%
18%
7%
SDC in North East(NSDC Setups)
Arunachal Pradesh
Assam
Meghalaya
Manipur
Nagaland
Sikkim
Tripura
PROPOSED SOLUTION
• Skill development Centres which will be setup shall be a public private partnership.
• Apart from the government setups, private companies will setup SDC and companies will receive
incentives and other rebates while setting up factories/workshops in Special Economic Zones(SEZ)
• Setting up of SDC will be carried out in two phases: Phase 1 (2013-2017) Phase 2 (2017-2022)
• The average duration of a course shall be around 3 months
• Size of SDC:- 300 sq mt. ,125 sq mt to be used for machines and 275 sq mt will be used to setup 4
classrooms and each class room shall accommodate 75 students
• Roughly about 4 courses to be taught in a year , thereby each SDC will impact 1200 students in a year
Major Issues:-
• Unequal distribution of SDC over population in North East
• Few SDC in major states like Assam, Manipur
Phase1
Phase2
Number of SDC to be setup
• Arunachal Pradesh-15
• Assam-40
• Meghalaya-7
• Manipur-15
• Mizoram-5
• Nagaland-15
• Sikkim-4
• Tripura-10
Number of SDC to be setup
• Arunachal Pradesh-10
• Assam-20
• Meghalaya-5
• Manipur-5
• Mizoram-5
• Nagaland-7
• Sikkim-2
• Tripura-8
Intake of students in SDC
2013-2015
75,000
2015-2017
60,000
2017-2019
2019-2022
15,00050,000
Phase 1 Phase 2
4

6. CREATION OF SPECIAL ECONOMIC ZONES (SEZ) AND LINKING WITH SDC
Private
Sector
56%
Governme
nt Sector
40%
BPO
Setups
4%
Private Sector Government Sector BPO Setups
• Considering the terrain of North East, each SEZ built shall
not be more than 10 hectares.
• The land in SEZ shall be used for Government Setups,
Private Setups and BPO setups.
• The skilled people coming from SDC shall have a choice
of working in the Private sector companies in SEZ or
working for Government brand products.
• The government shall identify products which it can
make and thereby employ people and aim at creating
sustainable brands in North East
• A good example could be setting up of a workshop for
making bamboo products
• Single window clearance system to be introduced for SEZ
CURRENT SCENARIO- SEZ Setups
Only 1 SEZ in Manipur ,and 2 SEZ’s in
Nagaland have been granted approval
PROPOSED SOLUTION- Setting up of 50 SEZ’s
Advantages of creating SEZ and
linking with SDC:-
• Presence of localized skilled
labour ensures continuous
supply for SEZ demand.
• SEZs encourage township
development, which make
provisions for additional
employment opportunities for
accessory vocations.
Land allocation of each SEZ
Phase1
Phase2
Number of SEZ to be setup(26)
• Arunachal Pradesh-3
• Assam-5
• Meghalaya-4
• Manipur-3
• Mizoram-3
• Nagaland-3
• Sikkim-2
• Tripura-3
Number of SEZ to be setup(24)
• Arunachal Pradesh-3
• Assam-5
• Meghalaya-3
• Manipur-3
• Mizoram-3
• Nagaland-3
• Sikkim-2
• Tripura-2
Setting up of SEZ will be carried out in two phases:
Phase 1 (2013-2017) & Phase 2 (2017-2020)
5

7. SUPPLY CHAIN MANAGEMENT
Supply chain management shall be
done through a b2B2C model
North East shares its borders with 5 foreign countries:-
• Bangladesh
• China
• Myanmar
• Bhutan
• Nepal
 Thus , using this advantage, export shall be a main focus of the
products.
 50 to 60 % Production Mandatory for Export
 The products shall be made considering the market demands of
these countries.
 The ASEAN–India Free Trade Area shall help in trade between
countries.
 Apart from export, products will be sold to major sellers in India
like FabIndia
Creating Value
Delivering Value
Capturing value
Key Aspects
6

8. THE BPO PROGRAMME
• In the SDC, there shall be 4- 6 months courses to teach students
basic computer skills
• Schools in North East shall also emphasize on teaching of computer
skills
• 1 acre of each SEZ made shall be used to setup BPO’s
10 50 500 500 2,50,000
BPO’s per SEZ Total SEZ’s Total BPO’s Employees per BPO Total people employed
GovernmentSupport
Subsidies in order to setup BPO in terms of buying computers or
using communication lines and power rates.
Giving Initial Projects like Census Data entry, UID Card, RTI
Facility on a voice call basis, Support and Helpline centre
Why North East?
Various parameters were taken
into account to mark each city in
NE out of 100 such as:-
• Govt. Policy
• Manpower
• Telecom Infrastructure
• Connectivity Infrastructure
• City Infrastructure
• Power
• Law and order
0
10
20
30
40
50
60
70
80
90
Impact
The graph shows that North
East is highly favourable for
setting up of BPO’s
Feasability of setting up BPO in
North East ( City wise)
Survey done by IIM A
7

9. FINANCES & STRATEGY
Type Cost
Land cost(300 sq.mtr approx) 9,50,000
Machinery cost 4,00,000
Furniture, computer etc 5,00,000
Total 18,50,000
Post Salary
p.a.(each)
Nos Total Costs
Manager 3,00,000 1 3,00,000
Accountant/Office
Assistant
1,25,000 1 1,25,000
Trainer 1,80,000 5 9,00,000
Office Boy 75,000 3 2,25,000
Total 15,50,000
Infrastructure Cost Human Resource Cost
SetupofSDC(Govt.)ObligationsofanSEZ
34,00,000
Grand Total
(per SDC)
Achieve positive
net foreign
exchange
earning (NFE)
Provide periodic
reports to the
Development
Commissioner &
Zone Customs.
Execute a bond cum
Legal Undertaking
with the Zone
Customs for their
operation in the SEZ.
Fulfill the
environmental
and pollution
control norms.
Act with the
Registrar of
Companies for
undertaking Indian
operations
Any company
set up with FDI
has to be
incorporated
under the
Indian
Companies
8

10. IMPACT
Our methods will ensure better
GDP contribution of the NE states
The SDC setup will provide skills to approximately 1.35 lakh people in a year in the first phase which would
gradually increase to 2.0 lakh skilled people in the next phase
An Additional 2.5 lakh people will be employed in the BPO over the period of 7 years.
The SEZ will provide employment to around 2 lakh skilled people from SDC
and around 2 lakh people from other sources.
The North-Eastern states together have received only
0.03% of total FDI. We expect to increase it to 1%.
9

11. RISKS & CHALLENGES
• Attracting or mobilizing students to these SDC’s
• Finding appropriate and qualified trainers for the courses
• Retaining students in the Skill Development Centres
• Establishing a system for third party assessment and certification
SDC
•North East is cut down from rest of India due to poor road and railways and hence companies refrain from
setting their unit here.
•If SEZ built on agricultural land the farmers will loose their livelihood & as they are not skilled labourers it
would to tough to relocate them to other jobs
SEZ
•Transparent decision making process- Better coordination & screening required
•India has very small size of EPZ’s(Experience with Export processing zone),therefore the product marketing is a
key challenge
•Remotely located and isolated, hilly terrainOTHER
10

12. APPENDIX
Thank You
• www.censusindia.gov.in
• www.nsdcindia.org
• www.sezindia.nic.in
• www.dget.nic.in
• http://www.indiainbusiness.nic.in/industry-infrastructure/infrastructure/sez1.htm
• http://pib.nic.in/
• http://www.northeastblog.in/
• www.sezindia.nic.in/
• www.kpmg.com/in/en/issuesandinsights/.../kbuzz/pages/education.aspx
• http://www.sezindia.nic.in/writereaddata/pdf/StatewiseDistribution-SEZ.pdf
• http://www.sezindia.nic.in/writereaddata/pdf/Sector-wise%20distribution-SEZ.pdf