Opportunities that might come with CSR
It is fascinating to consider what the government of Nagaland intends to pitch to investors and the finance ministry of India in light of the news that Nirmala Sitharaman, the country’s finance minister, will visit Nagaland for the first Corporate Social Responsibility (CSR) Investment & Banking Conclave, which is scheduled to take place on August 22–24 in Kohima.
The report “Nagaland Opportunities Abound” by Invest India published in July 2022, which, in the words of CM Rio, is a good attempt to provide a “comprehensive outline” of the various programs and initiatives that the State Government is leading to promote sustainable economic activities in the region, gives us an idea of what the government might pitch in the Conclave.
“The report provides the essential and comprehensive information for enhancing investors’ understanding of Nagaland,” wrote Amardeep Bhatia, Principal Secretary & Development Commissioner, Government of Nagaland in his message.
The report has a chapter called “Key CSR opportunities” and it includes 5 of it:
· United Nations – Empretec – HiEERA Program proposed by Investment And Development Authority of Nagaland (IDAN) in Partnership with Empretec India Foundation (EIF);
· Establishment Of Solar Cold Storage Units proposed by Local District Administrations;
· Establishment Of Multipurpose Sports Complex proposed by Deputy Commissioners / Nagaland Olympic Association;
· Procurement Of Health Care Devices proposed by Investment and Development Authority of Nagaland (IDAN) and
· Setting up of STEM/ E-Pathshala oriented Technology Based Education proposed by Department Of School Education
‘Priority CSR projects’ includes Solar Lightening Facilities for PHCs And Sub Centers, Construction of Staff Quarters for Doctors and Nurses (Prefab), Breast, Cervical and Oral Cancer Awareness Camps, Improving Access to PHC by Building Strong Community Response at the Grassroots, Construction of Labour Rooms in All the Remote Sub-Centres with Basic Equipment, Construction of Hostel Facility in Para Medical Training Institute Kohima, Patient Guest House for Cancer Patients, Student Library Network, Establishment of Multi-Skill Training Centre among many others.
According to the data, Nagaland spent more than INR 2 crore on CSR between FY 2014 and FY 21. The capital, Kohima, along with Tuensang, received the most CSR expenditures. In Kohima alone, INR 40.49 Lakh has been spent.
There are a total of 7 companies in the state that have CSR financing. HCL Technologies Limited has made the most contribution over the years, investing a total of INR 242 Lakh in CSR initiatives in the state.
Environment and animal welfare, rural development, health and sanitation, and education and livelihood are the four key industries drawing CSR funding. Environment, Animal welfare and conservation of resources have attracted total CSR spending of INR 152 Lakhs, followed by Health, Sanitation and Poverty eradication with INR 142.49 Lakhs
The report provides a wealth of information to a diverse set of stakeholders about the state, its potential investible sectors, and CSR opportunities, but whether it can inform investors of all the potential avenues in Nagaland that will go a long way towards making the state a hub for sustainable socio-economic development and economic activity remains to be seen at the conclave.
Nagaland’s key projects that needs investors
Apart from CSR opportunities, the report has also discussed “Investment opportunities in Nagaland” where the key projects include: Establishing Dry Port at Nagaland, Upgradation of Tourist Lodge at Kohima, Mini Cement Plant and Scaling Up of Bamboo Resource Centre
1. Nagaland Dry Port
Dry Port at Dimapur aims to serve as a gateway for export and imports from Nagaland and its neighboring states to South East Asian countries. The project is to boost the economies of the North Eastern states and move the region from Look East to Act East Policy.
2. Upgradation of Tourist Lodge at Kohima
The tourist lodge, constructed in 1982 is in need of substantial renovations and aims to upgrade it by not limiting it to landscaping, cafeteria / lodging repair, illumination, and security fencing.
Mini Cement Plant:
The Nagaland government established a micro cement plant with a capacity of 50 TPD in Wazeho in Phek District, which has since been upgraded to 150 TPD. However, due to logistical issues, the project has been unable to take flight. Furthermore, there are 3.3 MT reserves and three limestone quarries within three kilometers from the manufacturing site, making the region highly rich in natural resources.
The Nagaland government seeks assistance in utilizing the 285 MMT potential limestone reserve in order to scale up the Mini Cement Unit to a Mega Industrial size.
Scaling up of bamboo resource centers:
The project comprises improving current bamboo processing equipment and gear so that the existing stock may be used to make incense sticks, venetian blinds, treatment plants, toothpicks, dry briquettes, and other similar items. The initiative will generate long-term employment while also making the local community self-sufficient and ensuring surplus stock for export.
Its “Priority Projects” includes under implementation projects like Etiben Tea Factory in Mokokchung, Glass Recycling Unit- EcoShelve (Warehouse 103) in Chumoukedima and many under conceptualization projects such as Integrated Processing Pineapple Unit and Pack-house (Pristine Foods) in Chumoukedima, Engineering Composite materials from waste Banana Pseudostem (Anguki Industries) in Dimapur, Eco-Resort at Chiechama Kohima (Tourism Department), Air Strips in Nagaland (Thumby Aviation & East Air Charter Service) and Manufacturing of Electronic Printed Circuit Boards in Dimapur among others.
Why the need for CSR Conclave now
According to data from the Ministry of Commerce and Industries’ Department of Industrial Policy and Promotion, the Foreign Direct Investment (FDI) in the Northeast and Jammu & Kashmir has been negligible. From April 2000 to December 2017, total FDI inflows into India reached $532,552 million, however investments in the Northeast totaled only $4856.67 million – less than 1% of the total pie.
The greatest barrier to the region’s growth is generally related to public distrust of policymakers at the Centre, owing to years of neglect and exploitation, as well as its perception as a “hotbed of insurgency and terrorism,” which has resulted in an unstable political atmosphere.
However, with its much-touted Act East policy, the Modi government has now awoken to the enormous potential of its far-flung Northeast states but whether Nagaland can really persuade their investors during a time when the Naga Political Solution has gone stale will be its biggest challenge.
