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Industrial policy offers many concessions to NE, says Gujral

Prime Minister Inder Kumar Gujral on Sunday said the new industrial policy approved by the Union government has provided a number of concessions to establish industries in the northeastern region.

Speaking to newspersons in New Delhi, the prime minister said the Union government would provide the entire expenditure on the establishments of industrial growth centres up to a ceiling of Rs 150 million as against Rs 100 million admissible earlier.

Explaining the salient features of the new policy, Gujral said the Union government would provide 80 per cent funds for integrated industrial development centre as against 40 per cent earlier and the balance 20 per cent would be borne by the respective State Industrial Development Bank of India. The transport subsidy would be extended for a further seven years up to March 2007, he said.

The industrial growth centres and industrial development centres would be total tax free zone for the next 10 years. All industrial activity in these zones would be free from income tax and excise for 10 years from the commencement of production, he said.

Industries located in the growth centres would also be given capital investment subsidy at the rate of 15 per cent of their investment in plant and machinery, subject to a maximum ceiling of Rs 3 million, he said.

Gujral said the United Front government, in its Common Minimum Programme, has laid special emphasis on speedy economic development of Assam and the northeastern states.

The prime minister said the "new initiatives for the northeastern region" includes political initiatives to tackle the law and order problem, upgrade infrastructure and the basic minimum services, and take steps for speedy economic development. The new initiatives have 71 actionable points of which 39 had been completed. Action of 24 was going on and adequate funds were being provided for these schemes in the current year. "On the whole, there has been allround progress of the implementation of new initiatives," he said.

Gujral said the National Socialist Council of Nagaland (Muivah) responded to the invitation of a dialogue and ceasefire announced in august last in Nagaland was continuing.

The prime minister said that the Cabinet Committee on Economic Affairs had on September 10 approved the rail-cum-road bridge across the Brahmaputra river at Bogibheel in upper Assam to be constructed at a cost of Rs 9.42 billion. The final location survey and updated estimates were expected by the end of current month and the work would start shortly thereafter, he said.

The Airports Authority of India had already begun work for the moderation of the terminal and expansion of the runways at Guwahati airport to raise them to international standards. Work on the new international cargo complex had also been taken up and 243 acres of land had been handed over by the state government to AAI. Phase 1 work on the arrival lounge has been completed and commissioned. The latest radars for night landing facilities and for instrument landing system had been installed, he said.

Two industrial growth centres -- Chariduar growth centre at a cost of Rs 150 million and the Matia growth centre at a cost of Rs 223. million -- had already been approved and initial funds released to Assam government. The proposal for the Sonapur growth Centre was awaited for the Assam government, he said.

UNI