FINER welcomes new industrial policy,seeks some exemptions

Guwahati, Apr 03 (UNI) Welcoming the Centre's recent North East Industrial Investment Promotion Policy(NEIIPP), FINER today said had it included certain exemptions it would have attracted more potential investors.

The Federation of Industry and Commerce of North East Region (FINER) stated that minimum alternate tax, service tax and fringe benefit tax, vital to cut cost expenditure, could have been exempted.

Addressing a press conference here, FINER president S C Jain said the government considered the federation's views and recommendations while framing the revised industrial policy for NE which would lure more investors and encourage rapid industrialisation.

Mr Jain elaborated that locational restrictions had been lifted, except for a few 'negative' industries. From now onwards incentives would be provided to all industrial units, new as well as existing ones on their substantial expansion, in NE.

''The extension of 100 per cent excise duty and income tax exemption is also welcomed,'' he said.

Under the NEIIPP, capital investment subsidy had been enhanced from 15 per cent of the investment in plant and machinery to 30 per cent and the limit for automatic approval of subsidy at this rate will be Rs 1.5 crore per unit, as against Rs 30 lakh as was available under the earlier policy, North East Industrial Policy(NEIP).

Mr Jain said another good fillip for luring investment was that incentives under the NEIIPP would be applicable to a number of service sector activities like hotels, leisure sports, medical and health services, vocational training institutes, fashion, design and industrial training.

''One of the important impediments to the development of software technology parks related SEZs in the NE is the non-availability of trained human resources in the region. Accordingly, tax benefits as is availed under Section 80 IC of the Income Tax Act would be extended to IT related training centers and hardware units,'' he pointed out.

The FINER also acknowledged the incentives announced for bio-tech sector, power generating industries and establishment of monitoring mechanism for implementation of the NEIIPP.

However, FINER, which had been insisting on changing the earlier industrial policy following the existence of a similar policy in Himachal Pradesh and Uttaranchal, ensnaring investors towards the northern states, advocated for exemption of minimum alternate tax, service tax and fringe benefit tax.

''The subsidies are not enough. The potential investors look beyond that and consider long-term benefits. We will urge the Centre to cut the service, fringe benefit and minimum alternate taxes, for a classified group of investors, if not for all,'' Mr Jain added.

UNI