oppn parties Lifeline to North-East Industry Extended Till 2017

News Snippets

  • In reply to a question in Parliament, the government says it is empowered to lawfully intercept, monitor or decrpyt information stored in a computer resource in the interest of sovereignty or integrity of India
  • Police stop a 12-year old girl on her way to the Sabarimala shrine
  • In Karnataka, the JD(S) indicates that it might support the BJP government if it falls short of numbers after the bypolls
  • Congress pips the BJP in local body elections in Rajasthan, winning 961 wards to the BJPs 737
  • After Airtel and Vodafone-Idea, Jio also indicates that tariffs will be raised from December
  • Sources in Shiv Sena say that they might revive the alliance with the BJP if it offers the 50:50 deal
  • A miffed Sanjay Rout of the Shiv Sena says that it will take "100 births" to understand Sharad Pawar
  • Mobile operators Vodafone-Idea and Airtel decide to raise tariffs from next month
  • Sharad Pawar meets Sonia Gandhi and says more time needed for government formation in Maharashtra
  • Justice S A Bobde sworn in as the 47th Chief Justice of India
  • Supreme Court holds hotels liable for theft of vehicle from their parking area if parked by valet, says "owner's risk" clause is not a shield from such liability
  • Finance Minister says she is receiving feedback from many sectors that recovery is happening as there is lower stress
  • Sabarimala temple opens, but police bar the entry of women below 50 years
  • Finance Minister Nirmala Sitharaman says Air India and BPCL to be sold off by March
  • Media person Rajat Sharma resigns as DDCA president
Two Muslim litigants in Ayodhya refuse to accept the Supreme Court order, say review petition might be filed
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Lifeline to North-East Industry Extended Till 2017

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About the Author

Sunil Garodia By our team of in-house writers.
The good news for industry in the North-East is that the government has clarified that despite the suspension of the North-East Industrial and Investment Promotion Policy (NEIIOO) 2007, the stated incentives under the package, including excise duty exemptions, will continue to be available to new units or existing units going for substantial expansion after 01/12/2014 up to 31.03.2017. By this clarification, the government has addressed the concerns of major industrial bodies in the region who were worried about the fall in investments in new units.

The North-Eastern region has traditionally been industrially backward because of its topography. Joined to the rest of India by a thin strip of land, the area was neglected by most companies as it lacked rail and road infrastructure. Setting up an industry in this region entailed a lot of hurdles, including payments to assorted insurgent groups, and was not economically viable. But with NEIIOO, a lot of things changed and many units were set up in Guwahati and other areas of Assam and some in other states. The main reason was that with excise duty exemption allowing them to set off higher transportation costs, higher labour costs and other ‘incidental’ expenses, these units could compete with the rest of India.

Hence it is that after the government clarification, The Federation of Industry and Commerce of North East Region (FINER), has said that with this, the confusion in the minds of investors will get dissipated and the approximately Rs 30000 cr in investments that was kept in abeyance, will be fast-tracked. Of course there have been rumours about ghost units being set up only to avail of the incentives, but those are few and can be eliminated with tighter monitoring. Overall, it is a welcome move by the government that will continue to promote setting up of industry in the region.