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Kohima, July 4 (EMN): Nagaland Chief Minister Neiphiu Rio on Monday urged investors and firms to invest more in the state and help enhance service delivery especially in health and education sectors.
The chief minister was addressing the inaugural programme of the first Nagaland Corporate Social Responsibility (CSR) & Investment Conclave 2022 at the State Banquet Hall in Kohima on Monday.
On the cancellation of Union Finance Minister Nirmala Sitharaman’s scheduled visit to the state, he said ‘she had conveyed to him that she would come to the state at the earliest’.
Citing the partial lifting of the controversial Armed Forces (Special Powers) Act (AFSPA) in several parts of Nagaland, Rio told investors that the law and order situation should not be the reason for not investing in the state as the state is ‘peaceful’.
The AFSPA, which was in force in Nagaland since 1958, was revoked from 15 of the 72 Police Stations in the state, with effect from April 1 this year.
“Insurgency, and law and order in the state, in the past had prevented investors from coming to Nagaland. We are hopeful that the Naga political issue will be resolved soon. A ceasefire has been in place with the political groups and the Government of India for the last more than 25 years. The State is, therefore, very peaceful, and there is much lesser crime than other parts of the country,” he said.
Pointing out that Nagaland is unable to attract “sufficient attention” in regard to CSR initiatives, he urged the companies for a long-term investment in the state and sought for integration of local businesses with the national supply chains.
Out of the estimated INR 1.25 lakh crore which companies had spent as part of its mandatory CSR over the last seven years, a minuscule 0.006% has been reportedly spent in Nagaland, he said, while urging the firms to invest more in the state.
The CM also requested the companies to build a long term relationship with Nagaland so that it can not only ensure successful operation of its CSR projects but also help integrate local businesses with the national supply chains.
CSR, coupled with private investments, would serve as an important supplement to government spending and maximise the impact of interventions in critical development sectors, he added.
Highlighting some of the development challenges in the state, Rio said that remoteness and geographical terrain, balancing sustainability and development concerns, make it challenging for ensuring last-mile public service delivery, particularly in health and education sectors in the state. This is where companies with its resources and expertise can help the state in designing, developing and delivering innovative solutions with the use of advanced technology.
Nagaland is blessed with a talented and naturally innovative workforce though unemployment rate is high, he said while suggested employment and skill development initiatives. While informing that some of CSR projects in the health and education sectors are being successfully implemented in parts of the state, he expressed hope that such ongoing successful interventions at local level can be replicated on a larger scale across the state with the collaboration of the respective district and state administrations or local NGOs with funding from potential CSR partners.
‘In terms of policy, the state is prioritising on developing a facilitative and investor-friendly eco-system. Towards this, a single window application for investors has been developed. Further, the government is working towards introducing a modern land law in the state. This will allow easier availability of land through leasing for identified sectors in Dimapur, Kohima and other identified districts. This should make it easier for businesses to set up their units,’ he informed.
There are many focus areas for private investment such as agro-based industries, medical education, hospitality, tourism sector, mineral-based and wood-based industrial clusters, textiles, handicrafts, music and arts. Besides this, there are vibrant entrepreneurs and start-ups that would benefit from the scale and expertise that can be offered by large corporations for win-win collaborations, he added.
The chief minister also disbursed INR 9,67,50,000 (approximately INR 9.67 crore) to 738 government schools in the state as first instalment of performance incentive grants which was announced last month under the Nagaland Education Project-The Lighthouse (NECTAR) in order to strengthen community involvement in education reform.
Chief Secretary J Alam said the economy of Nagaland state currently revolves around agriculture and services, in which government services account for a significant share.
In the state GDP, as of 2021-22, services contributed 61% and agriculture 27%, while the manufacturing activities including construction account for about 11%.
The per capita income in Nagaland is about $ 2,000 (at GSDP of INR 32,424 crore in 2021-22), it was informed.
‘As part of the CSR and Investment Conclave, the state government has prepared a shelf of potential projects based on developmental needs and priorities. These and other projects can be considered for adoption by companies,’ he suggested.
The state is also working on adopting the benchmarks set for ease of doing business, reduction in compliance burden for investors and decriminalising minor offences. A draft State logistics policy is under preparation, he further informed.
Project head of Her & Now, GIZ (a German Development Agency) Julia Karst, presented policy recommendations on women's entrepreneurship in the state. The suggestions included a centralised platform, incubation programmes, improvement of digital literacy, well-represented women entrepreneurs in the industry events and bodies, and providing a seed fund for financing women.
She also informed that GIZ would help in funding some of the projects in the state.