Upping its ante against the Centre, the ruling BJP here today passed a political resolution calling for the extension of the concessional industrial package (CIP).
“At a meeting of the state BJP council here where senior BJP leader L K Advani also participated, the resolution criticised the Centre for not extending the industrial package saying it would harm the interests of the state,” said state media adviser Diwendra Bhasin.
The resolution came in less than a week after the area-based exemptions expired on March 31. Since then, the politics over the industrial package had heated up with both the BJP and Congress taking potshots on each other over the issue.
Chief Minister Ramesh Pokhriyal Nishank along with his cabinet colleagues had met Prime Minister Manmohan Singh over the issue. Later, state Congress leaders also sought from the PM the extension of the industrial package. There had been expectations the Centre might extend the area-based exemptions at least for three years.
Top officials here maintained that since the Centre had already extended the benefits of excise beyond 2011 to Jammu and Kashmir and north eastern states, they could also be extended to Himachal Pradesh and Uttarakhand.
Under the new provision, the benefits of excise would be given to industries through re-imbursement. Excise rebate is the main component of the CIP, especially in Uttarakhand where industries will not have to dole out any central excise for a period 10 years after the production.
The CIP announced by former Prime Minister Atal Behari Vajpayee created an industrial boom in Uttarakhand with top-notch companies like Britannia, Nestle, HUL and Hero Honda setting up new units in the hill state. The government is of view that the industrial package must be extended otherwise it will adversely affect an investment of over Rs 30,000 crores which is in pipeline in the state.
More From This Section
Meanwhile, Nishank has claimed that the Centre curtailed the package, which was originally for 10 years till 2013, to 2010 without giving any substantial reasons.
Uttarakhand Kranti Dal (UKD), an ally of the BJP, has accused the Congress of not safeguarding the interests of the hill state on several occasions. “The Congress was not even sincere to carve out the hill state,” said UKD leader Kashi Singh Airy.
On the other hand, state Congress President Yashpal Arya has asked Nishank to stage dharna in Punjab, which is opposing the industrial package tooth and nail.