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NEIIPP |
Northern Eastern States
Owing to the slow growth in industrialization and lack of adequate physical and social infrastructure, the quantum on investments in the north eastern States have been quite poor. The region has received an investment of merely Rs.1067Crore till 2004 under the existing policy (NEIP 1997). To reverse the trend The Union Government has launched the North Eastern Industrial and Investment Promotion Policy 2007 replacing the North Eastern Industrial Policy to solicit the investors for development of most underdeveloped North Eastern States. Also, the Centre proposes to draw a five-year roadmap to develop infrastructure in the N-E region and plans to invest Rs.50000Crore in the 11th Five Year Plan for setting up road infrastructure in the region and make the region power surplus within next five years. The North Eastern Industrial and Investment Promotion Policy 2007 provide exemption of taxes, capital investments and interest subsidies. It introduces a comprehensive insurance coverage for the industrial units. Sikkim has been included under this new policy.
By certain amendments in the previous policy, the new policy has been made more attractive for investors, mainly automobile and ancillary industries whose presence in the region is miniscule. Another focus area in the new policy is Power (which is a scarce commodity in the North East) with emphasis on the need for more hydel power projects. The New Industrial Policy provides 100 percent tax exemption to industrial units of the northeast, besides offering other fiscal sops to speed up development and offer employment opportunities the region. Apart from the income tax exemption, the new policy also provides for continuing the 100 percent excise duty exemptions on finished products that are made in the north-eastern states that also includes Sikkim. It also provides for reimbursement of 100 percent insurance premium under the comprehensive insurance scheme for new as well as existing industrial units seeking to expand substantially. Once notified, the existing industrial policy and other concessions extended to Sikkim that were announced in December 2002 would be discontinued. The new policy also seeks to provide incentives to services, biotechnology and power generating industries. The North Eastern Development Finance Corporation ensure eco-friendly development in the North East. The provisions of the new policy would provide the requisite incentives as well as an enabling environment to speed up the industrialization in the region.
North East Industrial and Investment Promotion Policy (NEIIPP), 2007
The Government has approved a package of fiscal incentives and other concessions for the North East Region namely the ‘North East Industrial and Investment Promotion Policy (NEIIPP), 2007’, effective from 1.4.2007, which, inter-alia, envisages the following:
- Coverage:
The North East Industrial Policy (NEIP), 1997 announced on 24.12.1997 covered the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. Under NEIIPP, 2007, Sikkim will also be included. Consequently, the ‘New Industrial Policy and other concessions for the State of Sikkim’ announced vide O.M. No.14(2)/2002-SPS dated 23.12.2002 and the Schemes thereunder i.e. Central Capital Investment Subsidy Scheme, 2002, Central Interest Subsidy Scheme, 2002 and Central Comprehensive Insurance Scheme, 2002, notified vide Notifications No. F.No.14 (2)/2002-SPS dated the 24.12.2002 will be discontinued from 1.4.2007.
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