Conflict blow to investment

GUWAHATI, February 23: The government's hoopla over making Assam an "investors' paradise" got a rude shock with a Japanese trade expert today saying no person from a foreign country would like to come to a conflict zone. The statement, which jolted top government officials and industry bigwigs on the concluding day of the international conference on "Business Opportunities in Northeast India: Guwahati Initiative", came from Yashinobu Sei, an official of the FICCI-Japan cell. On the possibility of Japanese investment in the state, Sei said Assam should be safe enough for foreigners to work and live. Fear of terrorism was no incentive for foreigners, he added. "Assam is hardly understood in Japan and the Japanese cannot even guess what kind of businessmen Assamese are. There is no mention of Assam by the Indian embassy there," Sei said. The trade expert, who has been in India for almost two decades now, also said the Japanese embassy was not very enthusiastic about sending tourists to Assam as "it is not safe". He said Japanese investors would like to have readymade infrastructure for staying here. He even doubted whether the state had any USP (unique selling point) for investors. "Assam requires a plan for next 100 years to face the competition as society is fast changing." He expressed hope of Japanese foray into mushroom cultivation here for the domestic marketas well as for export. While government officials took help of audio-visual slides to highlight Assam's USP, industrialists of the region pointed out to the indifference of financial institutions and banks towards entrepreneurs here. "The demand for extra collateral security and high rate of interest are unreasonable," M.K. Saharia, managing director of Northeast Pure Drinks Limited said. Saharia said land policy needed to be changed and insurance refund rules had to be implemented. He, however, said there has been a considerable improvement in the situation at the ground level. Deputy director of Central Silk Board K.S. Menon pointed out that inconsistency in raw materials and obsolete technological was hindering investment in the sericulture sector. "Products are not of high quality and there is absence of skilled labour," Menon added. "Though Assam has a rich tradition and a good potential in the handloom sector, its products are region-specific. The central Silk Board and the state government are working on a number of schemes to promote high quality sericulture in the region," the silk board deputy-director said. Amid the barrage of criticism on the state's investor-unfriendly atmosphere, industry commissioner S.C. Das' assertion that internet accessibility in Assam was better than Delhi's, was indeed a gaffe. He also felt that the Northeast industrial policy was Assam's USP. State Tourism commissioner Surajit Mitra spoke on "Assam being unexplored". R.R. Rashmi of the ministry of commerce and industry underlined the need for having proper infrastructure at the land customs stations. The commerce ministry official said exports from the Northeast to neighbouring countries was valued at only Rs 170 crore. Informal trade was higher compared to the formal trade in the region, he added. V.K. Khanna, chairman of the Inland Waterways Authority of India said new incentives have been offered for boosting inland water transport in the country, which is applicable for the Northeast also. "The process for declaring Barak river as National Waterway 2 is on," the chairman added.