The BJP today announced a high-level party delegation comprising its top leaders would call on Prime Minister Manmohan Singh to seek the extension of the concessional industrial package (CIP) for hill states and asserted that it had advised both Punjab and Gujarat governments not to oppose the area-based exemptions.
“We have sought time from the Prime Minister over the issue,” Leader of the Opposition Sushma Swaraj said. The delegation comprises senior party leader L K Advani, BJP president Nitin Gadkari, Sushma Swaraj and chief ministers of both Himachal Pradesh and Uttarakhand.
Significantly, both Chief Ministers Ramesh Pokhriyal Nishank and Prem Kumar Dhumal held a series of meetings with the Prime Minister over the issue recently. The area-based exemptions expired on March 31after the centre decided to bring Goods and Services Tax (GST) from next year.
To a question, Swaraj added the BJP has also advised both Punjab and Gujarat governments not to oppose the tax incentives that had led to the flight of industries from both the states to the hilly regions.
“The centre must not discriminate against both Himachal and Uttarakhand just because they are being ruled by BJP. On the other hand, they should be rewarded for their good performance,” she said.
Nishank along with his cabinet colleagues had met the Prime Minister over the issue in April. Later, state Congress leaders also sought from the centre the extension of the industrial package. In the last meeting at Pantnagar, Nishank again took up the demand with Singh.
Top officials here maintained that since the centre has already extended the benefits of excise beyond 2011 to Jammu and Kashmir and North eastern states, they can also be extended to Himachal Pradesh and Uttarakhand as well.
Excise rebate is the main component of the CIP especially in Uttarakhand where industries were given cent percent exemption 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, Hero Honda, Tata Motors setting up units in the hill state. The state government is of the view that investments worth over Rs 32,000 crores which were in pipeline had been affected by the expiry of the CIP.
