No funds yet for new industrial policy in North-East region

New Delhi, May 16 (UNI) Having notified a new industrial policy for north-eastern region a month and half ago, the Central government has not yet sanctioned any funds.

Stating this in Rajya Sabha today, Minister of State for Commerce and Industry Ashwani Kumar said Rs 89.99 crore has, however, been earmarked for implementing various schemes under the old policy, which was unveiled in 1997.

The seven states of Asom, Meghalaya, Arunachal Pradesh, Tripura, Nagaland, Mizoram and Manipur attracted a meagre investment of just Rs 1,067.28 crore in 681 units and generted direct employment for 20,709 people in ten years under the North East Industrial Policy-1997, according to a study carried out by Tata Economic Constulancy Services between 1999-2004.

Based on the recommendations made by the consultancy firm and a memorandum submitted by the North Easteran Small Scale Industries Association, the Central government notified the new policy called North East Industrial and Investment Promotion Policy (NEIIPP),2007, last month. It also includes Sikkim, the 8th North-Eastern state.

Investors in the region are provided various subsidies under the new policy which, while retaining 100 per cent excise and income tax exemption, has doubled capital investment subsidy to 30 per cent for units costing upto Rs 1.50 crore. Earlier, only 15 per cent subsidy was available to units set up at a cost of upto Rs 30 lakh.

UNI