Nod to N-E industrial policy

Sikkim has been included in the North East Industrial and Investment Promotion Policy (NEIIPP), 2007, which has doubled the capital investment subsidy from 15 per cent of the investment in plant and machinery to 30 per cent. The automatic approval for this subsidy has been raised from Rs 30 lakh per unit to Rs 1.5 crore per unit.

The Cabinet Committee on Economic Affairs today gave its approval for this policy, under which tax incentives for a period of 10 years would be extended to new as well as existing industrial units, which opt for expansion, in the region.

However, tobacco and tobacco products, pan masala, plastic carry bags and goods produced by refineries would not be eligible for incentives.

"The policy will provide incentives and an enabling environment to speed up industrialisation of the north-eastern region, which is otherwise growing at less than 4 per cent per annum against the national average of 8 per cent," said Information and Broadcasting Minister PR Dasmunshi.

The distinction between "thrust" and "non-thrust" industries, as provided in the 1997 policy, has been discontinued since all industrial units located in the region would be covered under the new policy.

Economists did not favour tax exemptions based on geographical location in the past and are not in favour of the new one either. "If you want to provide tax reforms then doing so based on geography is not the best option. Such policies are normally politically motivated," said an economist with one of the country's largest conglomerates.

OTHER CABINET DECISIONS

The acquisition of two 250-passenger-cum-100 metric tones cargo vessels, each for $18.3 million equivalent to Rs 82.35 crore. The vessels will provide transport facilities to the islanders in Lakshadweep and will be obtained in 2009-10. To facilitate the embarking/disembarking of cargo and passengers, the CCEA approved the acquisition of six landing barges for Rs 51.6 crore. They will be obtained between December 2007 and December 2009.

A special grant of Rs 100 crore each to the universities of Mumbai, Madras and Calcutta for research projects on the occasion of their 150th year of celebration. The funds will be spent for setting up centres for nanosciences, nanotechnology and bio-medical nanotechnology.

The signing of MoU by the Financial Intelligence Unit, India with foreign Financial Intelligence Units to obtain information on money laundering activities.