Northeast investments on hold before Centre's new industrial policy

  • | Sunday | 25th June, 2017

Lot of industrial activities took place under the NEIIPP 2007. Our expectation is that the new policy should have benefits which can attract more investment to the region," Jain said. But we have no idea what new benefits are there in the new policy. Under the NEIIPP 2007, units that have come up in the northeast were promised 100% refund of excise duty, FINER said.With the announcement of GST, apparently the refunds would be restricted to 58% by the Central government, Lohia said. The new policy is expected to come out in July.

GUWAHATI: Prospective investors are keeping their fingers crossed over the Centre's proposed new Northeast Industrial and Investment Promotion Policy (NEIIPP), saying that any 'dilution' of the incentives provided in the previously existing NEIIPP 2007 would be a setback to industrial growth in the region.Federation of Industry and Commerce of Northeastern Region (FINER) vice president Bajrang Lohia on Friday said the benefits under the old policy must be retained for industrialization and investment in the region.NEIIPP 2007 expired on March 31 this year, and various industry bodies including the state government have been demanding a new policy with incentives to attract investment in the industry sector of the region. With the expiry of NEIIPP 2007, industry bodies are concerned that fresh investment in the state have virtually dried up after March 31.Former vice-chairman of FINER, Amit Kumar Jain , said investment to the tune of Rs 60,000-70,000 crore is in the pipeline but prospective investors are keeping their fingers crossed as they do not know what the benefits will be under the new industrial policy."The state government is proactively taking up our concerns with the Centre. The new policy is expected to come out in July. But we have no idea what new benefits are there in the new policy. Lot of industrial activities took place under the NEIIPP 2007. Our expectation is that the new policy should have benefits which can attract more investment to the region," Jain said. FINER said it has submitted a memorandum highlighting its concerns on NEIIPP and GST to Union finance minister Arun Jaitley , Union DoNER minister Jitendra Singh and Union minister of state for home, Kiren Rijiju, in New Delhi recently.FINER demanded a well-focused industrial policy and greater clarity on how the Central excise duty refund, currently eligible for industries set up pursuant to NEIIPP, would continue under the GST regime . Under the NEIIPP 2007, units that have come up in the northeast were promised 100% refund of excise duty, FINER said.With the announcement of GST, apparently the refunds would be restricted to 58% by the Central government, Lohia said. The fate of the remaining 42% of the refunds accruing is unknown, he added.

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