Himachal Pradesh Friday said the central government's decision to extend incentives to industries in the hill state till March 2017 would not adversely affect the industrial growth of Punjab.
"The opposition by the Punjab government has been uncalled for because Punjab is not only a neighbouring state but also a big brother to us," Industries Minister Mukesh Agnihotri said.
The minister said Himachal Pradesh was a small hilly state where encouraging industrialisation was not an easy task.
"The state has a hilly terrain and tough geographical conditions and moreover, due to lack of railway network, roads are the only mode of transportation which accounts for the high transportation cost of raw material for the industries," he said.
He said it was with this background, the hill state was given special industrial package incentives by the government of India on the pattern of north-eastern states.
The Cabinet Committee on Economic Affairs Wednesday gave its approval for extension of the special incentives, central capital subsidy on new industrial and existing units on substantial expansion, for Himachal Pradesh and Uttarakhand till March 2017.