Infrastructure investments crucial to unlock Nagaland’s economic potential: BAN to 16th FC

Dimapur, November 7 (MExN): The Business Association of Nagas (BAN) has submitted a representation to the 16th Finance Commission (FC), stressing critical infrastructure needs and calling for urgent investments to unlock Nagaland’s economic potential.

Among other issues, the critical infrastructure needs highlighted included improving road connectivity across districts, upgrading Dimapur Airport and Tuli Railway, enhancing the Special Economic Zone (SEZ), and establishing an exhibition and convention centre in Dimapur.

Key Issues

Infrastructure Challenges: The BAN’s representation highlighted that the road conditions across Nagaland are very poor, compounded by unreliable power supply and inadequate communication facilities. Citing the Dimapur-Kohima road as an example, it noted that these disparities hamper equitable growth and pose major barriers to development in both rural and urban areas.

Thus, the association urged the 16th FC to make substantial investments in road development across all districts, ensuring both urban and rural regions have high-quality, all-weather roads to support equitable growth.

The BAN also noted that while Nagaland holds significant strategic and economic importance, the State’s potential is hindered by neglected infrastructure. For instance, the Tuli and Dimapur railway stations, which generate substantial revenue for Indian Railways, remain overlooked in terms of development. Tuli, in particular, faces severe infrastructure neglect despite being an important industrial area, while Dimapur is a critical transit hub for the entire region, it noted.

Further, the BAN stated that Dimapur Airport, one of the oldest airports in the North-East, lacks upgrades, and its outdated facilities limit Nagaland’s connectivity with the rest of India and international destinations, directly impacting trade and tourism. The association added that establishing an international airport in Dimapur is crucial to realising Nagaland’s economic ambitions and facilitating regional business growth. It urged the 16th FC to upgrade Dimapur Airport to international standards.

It also called for the urgent upgrading of Tuli Railway station to harness the vast natural resources available in the region and link it to the rest of the country.

The Association also stated that the peak demand for power in Nagaland is 210 MW, while only 194 MW is met, with just 37.5 MW generated internally. Accordingly, it urged the 16th FC to fund renewable energy projects, particularly hydro and solar power plants.

Ganeshnagar SEZ: Highlighting that the Ganeshnagar SEZ, established with the vision to foster economic growth, lacks proper road connectivity, the BAN appealed to the 16th FC for comprehensive infrastructure funding to upgrade the SEZ, particularly in road connectivity, water supply, and power.

Border Roads for Trade Centres: Nagaland has four border trade centres: Longwa (Mon), Avangkhu (Phek), Pangsha (Tuensang), and Mimi (Kiphire), but they lack proper road infrastructure, the BAN said. Prioritising investment in road development to connect these centres and establish them as trade hubs is crucial. The association added that dialogue between the Indian Government and Myanmar to build these centres and roads would greatly benefit the economies of both nations.

It also urged the establishment of an exhibition and convention centre in Dimapur to host trade fairs and business conferences.
Dry Port in Dimapur: As a landlocked region, the BAN stressed that a dry port is essential for efficient cargo handling and streamlined trade in Nagaland. Thus, it called for the construction of a dry port in Dimapur to boost regional trade, benefiting Nagaland and the North-East at large.

Surveillance for Business Security: Noting that safety and security are foundational to fostering business growth, attracting investments, and enhancing public well-being, the BAN urged the 16th FC to allocate State-specific funds for installing surveillance cameras in key business hubs, covering an average density of 40 cameras per sq. km to boost security in all district headquarters.

Tapping Natural Resources: Nagaland is endowed with valuable natural resources, including limestone, coal, timber, bamboo, stone, and crude oil, offering significant economic potential, but the lack of reliable road connectivity hampers their development, the BAN highlighted.  To this end, it requested the 16th FC to allocate funds for developing roads to resource-rich areas, allowing sustainable extraction and transport.

Proposed Solutions

Meanwhile, besides highlighting key issues, the BAN proposed three solutions to address current developmental challenges in Nagaland to the Commission. The first solution was a sector-specific grant for critical infrastructure in roads, power, and communication to bridge the developmental gap in Nagaland.

The BAN also pointed out that Nagaland faces unique challenges, including long-standing political negotiations and their consequences on development, and urged for special financial aid to address these challenges. Thirdly, it called for investment in skill development to equip the State’s workforce with the skills required for the industries it aims to attract.