Industry in Manipur

Manipur is rich in natural resources but due to difficult terrain, inadequate infrastructural facilities and varying climatic conditions, the state could not develop much in the industrial sector of its economy. In the initial stage, Govt. policy in the state was one of revival and revitalization of the traditional handlooms and handicrafts of the local habitats. At present, there is no industries worth mentioning except traditional oriented ones such as khadi and village industries, handlooms and handicrafts. Manipur continue to remain an industrially backward state. The contribution of the manufacturing sector to the total gross state domestic product at current prices is found to be 6.26 percent according to the advance estimates for the year 2007-08.

Keeping in mind the trend of industrial development and the present local conditions of the state and in consonance with industrial policy of the Government of India, the Govt. of Manipur in its policy announcement of 1990, has decided to focus attention to the small scale and agro-based industries without discouraging the medium and large-scale industries. It is expected to serve the objective of employment generation and dispersal of industries in rural and urban areas.

The New Industrial policy, 1996 of the state has laid emphasis on creating a strong industrial base and employment opportunities in the state through provision of various growth inducing factors based on locally available resources. It is based on locally available raw materials and minerals. In order to promote rapid industrialization, the State Government has over the years been offering attractive package of incentives and concessions to invigorative industries.

Rapid Industrialization:

Industrialization implies the creation and growth of factories, mills, power plants and so on. It refers to the development of manufacturing and other related activities. Without rapid industrialization, economic development is almost impossible. The state Government has made persistent efforts for rapid industrialization of the state thereby generating more employment opportunities, alleviation of poverty and removal of economic disparities. Almost all the Public Sector undertaking like those shown below were facing financial problems and paucity of fund for maintenance inspite of providing package of incentives and concessions as laid out in its industrial policies and programmes.

(1) Manipur Cycles Corporation Ltd. (MCCL),

(2) Manipur Cement Ltd. (MCL),

(3) Manipur Spinning Mills Corporation Ltd.(MSMCL),

(4) Manipur Pulp & Allied Products Ltd.(MPAPL),

(5) Manipur Food Industries Corporation Ltd. (MFIC),

(6) Manipur Drugs And Pharmaceutical Ltd.(MSDPL),

(7) Manipur Handloom & Handicrafts Development Corporation Ltd.(MHHDCL),

(8) Manipur Electronic Development Corporation Ltd. (MANITRON) &

(9) Manipur Industrial Development Corporation Ltd. (MANIDCO).

As a result, the Government has decided to wind up the companies under no. 1 to 5 above i.e. MCCL, MCL, MSMCL, MPAPL, MFIC, as they are all loss making industries Proposals for privatization also failed as there were no buyer of the units. Regarding MSDPL, the Government has been consulting the central Government for its viability. As for Manipur Vanaspati & Allied Industries Ltd., the Company was about to wind up but for the stay order issued by the Guwahati High Court. Only the companies under no. 7 to 9 i.e., MHHDC, MANITRON, MANIDCO will be revitalized so as enable to stand themselves with one time assistance. Proposals for revival of these three corporations were submitted to the State Government for inclusion in the memorandum to the Twelfth Finance Commission. The staff of the Public Sector undertakings which are under process of winding up were already retrenched. Regarding the MFIC, the process has been reviewed and it shall continue as Implementing Agency of the Food Park Project.

A sum of Rs. 7.50 lakhs has been provided in 2006-07(B.E.) to be released as grantsin-aid to those corporation which are under the process of winding up for payment of salaries/wages of the retained staff.

Source: Economic Survey Manipur 2008-09