oppn parties Lifeline to North-East Industry Extended Till 2017

News Snippets

  • Crude prices fall sharply as Saudi Arabia assures normal production in a few weeks. Prices fall by 5.4% to $65.30 per barrel
  • Sensex tumbles 700 points over fears that rising crude prices will deal a body blow to the tottering Indian economy
  • As Rajeev Kumar fails to appear before the CBI despite several notices, the agency forms a special team to locate and apprehend him
  • S Jaishankar says Pakistan is not a normal neighbour and its behaviour is a "set of aberrations"
  • External Affairs Minister S Jaishankar says PoK in Indian territory and the country hopes to have physical jurisdiction over it one day
  • Barasat Sessions court near Kolkata rejects Rajeev Kumar anticipatory bail application citing lack of jurisdiction as the reason
  • PM Modi celebrates his birthday with Narmada aarti and later has lunch with his mother.
  • All 6 Bahujan Samaj Party MLAs merge with the Congress in Rajasthan
  • Bengal CM Mamata Banerjee to meet PM Modi on Wednesday, state issues on the agenda
  • Pakistan to open Kartarpur corridor on Nov 9
  • Rajeev Kumar, ex-police commissioner of Kolkata and wanted for questioning in the Sarada scam does not appear before the CBI despite the state administration requesting him to do so
  • Supreme Court asks the Centre to restore normalcy in J&K but keeping national interest in mind
  • As Trump accepts the invitation to attend a programme in Houston with PM Modi, India rushes to settle trade issues with US
  • After drone attack on Aramco's Suadi Arabia facility, oil prices jump 19% in intra-day trading causing worries for India
  • Imran Khan raises nuclear war bogey again, says if Pakistan loses a conventional war, it might fight till the end with its nuclear arsenal
Sunni Wakf Board and Nirvani Akhara write to the Supreme Court for a negotiated settlement to the Ayodhya dispute
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Lifeline to North-East Industry Extended Till 2017

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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.