Northeastern states ask for effective industrial policy
September 30th, 2010 - 4:09 pm ICT by IANS
Agartala, Sep 30 (IANS) The northeastern states have sought a time-bound and assured incentive package from the central government for industrial development in the region, Tripura Industries and Commerce Minister Jitendra Chowdhury said here Thursday.
The demand was raised by the northeast industries and commerce ministers in separate meetings with Prime Minister Manmohan Singh, Finance Minister Pranab Mukherjee and union Commerce and Industry Minister Anand Sharma in New Delhi Tuesday.
The incentive package scheme under the North East Industrial Policy (NEIP), 1997, which was announced by the central government for the northeastern states, was re-introduced as the North East Industrial and Investment Promotion Policy (NEIIPP), 2007.
The NEIIPP covers the eight northeastern states and extends benefits to the service, bio-technology and power generation sectors up to 10 MW.
The policy offered various sops, including 30 percent capital investment subsidy without any ceiling, 100 percent comprehensive insurance subsidy on capital investment and 100 percent excise duty and income tax exemption.
“During the past three years, the finance ministry and the department of industrial policy have withdrawn many facilities and concessions. Transport subsidy has also largely reduced,” Chowdhury told reporters after returning from New Delhi.
“The similar facilities incorporated in the NEIIPP, also extends to Himachal Pradesh, Uttarakhand and other states. As a result, those industrialists and investors willing to invest in the northeast region are turning away to mainland states,” he added.
The minister said that through various circulars and notifications, the various provisions of the NEIIPP were either made tougher or non-serious.
According to him, the union finance ministry had diluted the 100 percent excise duty exemption enunciated in the NEIIPP by curtailing it substantially and restricting it only to value addition of the raw materials, besides imposition of MAT (Minimum Alternate Tax) and levying of full income tax on incentives and subsidies.
“All these central government steps have adversely affected the industrial backing in the northeastern region,” Chowdhury said.
“The prime minister and other central ministers assured us that our demands will be looked into and appropriate steps taken,” he added.
- North-East states seek measures to attract investment - Jan 14, 2010
- Mizoram holds first ever investors' summit - May 31, 2011
- BJP seeks sops from PM for Himachal, Uttarakhand - Jul 08, 2010
- Himachal, Uttarakhand request PM to restore special package - May 12, 2010
- No excise duty waiver in hill states beyond 2010: Anand Sharma - May 08, 2010
- Northeastern states seek industrial growth package - May 23, 2010
- Northeast seeks special package for industry, tourism - Jan 19, 2012
- Industrial package fails to draw much investment in Himachal - Mar 28, 2010
- Prominent highlights of 2012-13 budget - Mar 16, 2012
- Punjab offers rebates for sugar mills in border areas - Jul 20, 2011
- Budget promises more money for all - farmers to corporates (Third Lead) - Feb 28, 2011
- Some positives in budget, says India Inc; displeased with taxes - Mar 16, 2012
- Mukherjee puts money in one pocket, takes out from others (Roundup) - Mar 16, 2012
- Industries sagging in Jammu and Kashmir - Feb 09, 2012
- Budget neglects northeast: Tripura minister - Mar 16, 2012
Tags: anand sharma, commerce minister, comprehensive insurance, excise duty exemption, incentive package, income tax exemption, industry minister, insurance subsidy, investment promotion, jitendra, mainland states, manmohan singh, northeastern states, power generation sectors, pranab mukherjee, prime minister manmohan, prime minister manmohan singh, promotion policy, union finance ministry, value addition