Wednesday, February 13, 2008

boom town shillong


Shilong learns to rock
Shilong
Economic change is literally sweeping through this hill town of the Khasi’s. The humble broom we use in our everyday life contributes Rs. 300 crore to the economy of Shillong every year. The brooms made here are used across India and have seen a demand spiral in synch with the real estate upswing. The brooms cost Rs. 12 a kilo two years ago and now cost upward of 30 ruppes per kilo. Says Anand Aggrawala, who trades in this commodity at the up market police bazaar in downtown Shilong“ The broom is our best-kept secret. This is only the beginning - as rural India modernize hygiene consciousness come about this business grow manifold” It’s classic bottom of the pyramid.

From brooms to tourism and hydel power to software the city is witnessing growth. The city derives its name from the legend of a deity called shy long – one that grows naturally - and is at last living up to its name.

The free market works in fascinating ways here. The helicopter ride from Guahati costs 900 ruppes - take a taxi and the tab is 1100. With air connectivity has come the higher end tourist. Says Mrs. J R Phambo, who is developing a mountaineering and wellness resort in picturesque cherapunji,“ For years Shilong sounded exotic but out of reach now it is a two hour flight and a half hour chopper hop from Delhi. This has translated into a mini tourism boom. Suddenly we are accessible!” And it is likely to get closer. Plans are afoot to lengthen the runway at Shilong to land jet and turboprop aircraft. The first landings may happen this January. The result is a hotels boom - companies including the Taj group and DLF are reportedly exploring possibilities for opening new hotels.

The real growth though may come from unlocking the hydel power potential of the state. The state has seen interest from 40 power firms so far and at least six new hydel power projects are already in various stages of commission. Says Manas Chaudhery, editor of the Shilong times and an MLA “ If execution meets intention Hydel power could a be really serious money spinner for us.“

With an English speaking work force and property prices 40 per cent less than metros it is only a matter of time before information technology arbitrages the Shilong advantage. M Larsing, the NIIT franchise and hotelier says, “Info tech firms are looking to save cost and yet need a diligent workforce that is fluent in English. We have experienced that Shilong youth - once given the technical skills love to work within their homes even if wages are less. I believe that as far as cost arbitrage goes Shilong is the future IT hotspot.”

Yet another trigger for growth is from timber and non-timber forest products. Says Sahihun lang a young women entrepreneur “ Forest products are a strength of Shillong and with the well ness business and the retail revolution unfolding we see great opportunities in supplying top grade honey, turmeric and many other items.” To this end the government has set up an e commerce portal called the Meghalaya agricultural marketing portal and he bigger retails chains have already started procurement.
Finally there is the mineral wealth such as coal and limestone on offer. However the lack of clarity in policy and the difficulty of obtaining land ownership has deterred investors in this sector and much of the mining is illegal. There is also a disputer on mining uranium fro shilong give environment concerns.

One intangible reason for Shilong’s growth is its young population. It’s late in the nigh and the trendy disco Tango is full up trouble has broken out and fists exchanged. The waiter at the Disco informs that they need more bouncers - and from out of town since tribal and clan affiliation ensure that the local ones don’t do a good job of restraining fellow tribals. So economic growth and social change with it, in the city that annually celebrated Bob Dylan birthday, is blowing in the wind.
Growth triggers
Agro and forest products feeding retail chain
Forty proposals for power plants
Airport modernization likely to lead to tourism boom
English speaking workforce and low property and wage cost could prove a cost arbitrage for the information technology industry
Bottlenecks
Tribal society means a few powerful satraps garner most of the gains
The north east periphery yet to gain critical economic mass
Insurgency remains a issue especially in nearby agro hills

No comments: