FINER decries excise benefits extension to mainland states

Guwahati, Aug 11: The Federation of Industries and Commerce of North Eastern Region (FINER) today termed the extension of excise benefits to Uttaranchal, Himachal Pradesh and Jammu and Kashmir as a blow to the industrialisation of the North-East region.

Addressing newsmen here, FINER president S K Jain said the FINER was surprised at the extension of excise benefits under the Industrial Policy to the three states from March 31, 2007 to March 31, 2010 by a notification of August 2.

He said, ''The Centre has assured a FINER delegation that the excise benefits will not be extended there to promote NE as a favoured investment zone. This is a major blow to the industrialisation process of the region. '' Highlighting that the North-East Industrial Policy (NEIP), 1997, was drawn up to put the region in the industrial map of the country, he alleged that the attitude of the government had not been satisfactory.

Mr Jain pointed out that the region was yet to be made a 100 per cent tax-free zone, a main objective behind the NEIP.

He claimed that investment up to Rs 10,000 crore was in the pipeline for NE under the NEIP when the announcement of similar benefits diverted the amount to Uttarachal, Himachal Pradesh and Jammu and Kashmir.

As per a study, Himachal had seen investment of Rs 18,000 crore in recent times, Uttaranchal Rs 4,000 crore and Jammu and Kashmir Rs 2,000 crore. Against these amounts, NE had received investment of only Rs 1,200 crore, he said.

The FINER president said the spirit of the NEIP was diluted by making it location restrictive and similar incentives for the other three states have shifted the focus from the region. Mr Jain said, ''These states are nearer to the main commercial cities and have better infrastructure. Hence, similar benefits to them like those enjoyed by the NE will make investors go there.'' He said the Centre should change certain provisions in the NEIP to make it more investor friendly, including relaxation in the taxes currently imposed under it. He also appealed for inclusion of transport and power subsidies in the Policy.

''For the NEIP to show concrete results, it should be extended from March 31, 2007, to March 31, 2017,'' he added.

To a query, Mr Jain said a few MPs of the region had been contacted by the FINER and a move was afoot to hold a formal meeting with the North-East MPs Forum.

He also said Asom's decision to pursue Chattisgarh model of ''single contact'' system for investors was a positive signal and other NE states could be persuaded to emulate it at a later date.

UNI