Meghalaya, major beneficiaries of NE Industrial Policy

Shillong, Mar 12 (UNI) Meghalaya has been one of the major beneficiaries of the North Eastern Industrial Policy of the Union government, Governor M M Jacob today said.

Delivering his customary speech on the opening day of the Meghalaya's budget session, Mr Jacob said since the policy was announced, 108 medium and large industrial units have been set up with a total investment of about Rs 511 crore, creating direct employment for 6500 persons.

''In all 179 units with an investment of about Rs 1500 crores have been approved and their implementation is in progress,'' the Governor informed the 60-member House.

Mr Jacob said Lafarge (India) Ltd, the largest cement company in the world, had been granted permission for setting up a large plant in the state.

In the small scale sector there is a total investment of about Rs 100 crore creating direct employment for 31,688 persons, he said, adding that since the announcement of the Centre's policy in 1997 similar benefits had been extended to other parts of the country.

Therefore, he said, the North Eastern states have represented to the union government for higher incentives for industries in the region in the forthcoming policy, expected to be finalised soon, Mr Jacob said.

Mr Jacob said the Meghalaya Industries (Tax Remission) Scheme, 2006 substituting the Meghalaya (Sales Tax Concession) Scheme, 2001 was notified on October 1,2006.

Under this Scheme, he said, all existing industries covered under Industrial Policy, 1997 and those having taken effective steps on or before April 13, 2005 are required to pay Value Added Tax (VAT) at the rate of one per cent of the tax payable.

Mr Jacob said cement industries having installed capacity of more than 600 tonnes per day are required to pay VAT at the rate of four per cent of the tax payable.

''VAT on cement produced by Mawmluh Cherra Cement Limited and sold in Meghalaya has been reduced from 12.5 per cent to four per cent in the intetest of consumers,'' the governor said.

The Department of Taxation had joined the nationwide Tax information Exchange System for effective tracking inter-state statutory forms under the Central Sales Tax Act to prevent tax evasion.

Mr Jacob said the Rural Employment Generation Programme (REGP) which provides 30 per cent margin money through the Khadi and Village Industries Board for setting up any manufacturing or service unit has been a very popular programme for rural artisans and youth.

UNI