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Centre suspends new schemes under NEIIPP, evoke protest

An order in this regard was issued on Monday by the Department of Industrial Policy and Promotion under the Union Ministry of Commerce and Industry to the state governments of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.

“The undersigned is directed to convey that with the approval of competent authority, it has now been decided to suspend registration under the schemes of North East Industrial and Investment Promotion Policy (NEIIPP), 2007 with immediate effect till further order(s),” said the communication from the Centre to the states.

“It is, therefore, requested to kindly issue necessary directions to GMs of all the DICs not to register any unit for any of the schemes under NEIIPP, 2007 w.e.f. 01.12. 2014,” the order said.

The communique to all the Principal Secretaries and Secretaries of the Industries Departments of the states also said: “A compliance report in this regard may kindly be furnished to this Department latest by 05.00 pm on 02.12. 2014 positively”.

The Cabinet Committee on Economic Affairs (CCEA) had given its nod to the NEIIPP on March 29, 2007 for implementing the Policy from April 2007.

While approving it, CCEA had said: “The provisions of the NEIIPP, 2007 would provide the requisite incentives as well as an enabling environment to speed up the industrialisation of the North Eastern region, which is otherwise less than 4 per cent per annum against a national average of 8 per cent”.

Reacting strongly to the order, Assam Industries and Commerce Minister Pradyut Bordoloi said the state government will oppose the move to stop the benefits under the scheme to the geographically disadvantageous North Eastern region.

“We will not keep quiet. We will protest. The NDA at the Centre is taking discriminatory policies for the North East. But if economy does not take place, how can we have an economic zone in the region?,” the minister told reporters here.

Bordoloi said the region usually does not attract big investment proposals in any sector due to its isolated location and absence of a big market, resulting in huge transportation and logistic costs for any investor.
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