Special fiscal and incentive packages for industrial growth in North East “have so far failed to trigger major investment flow in the region in the manner it was conceived,” said Paban Singh Ghatowar, minister of Development of North Eastern Region (DoNER). He said in the absence of secondary sector, the growth of North Eastern states during the 11th Plan period was driven just by the primary and tertiary sectors.
“Special fiscal packages under North East Industrial Policy (NEIP) and North East Industrial and Investment Promotion Policy (NEIIPPP) have so far failed to trigger major investment flow in the region in the manner it was conceived. NEIP did lead to some investment in industrial units in and around Guwahati in tea, coal, plastics, cement, cosmetics, metallurgy, and so on, but could not attract investors to other parts of the region,” said Ghatowar.
“According to an assessment based on the financial investment intentions by private and public sector enterprises during 11th Plan period, 336 units expressed intention for investment in the North East involving Rs 38,892 crore approximately. As per 12th Plan share of investment (based on letter of Intent) in North East was, however, only 0.58 per cent of total intended investment at national level,” Ghatowar added.
Ghatowar was speaking at a ‘business summit’, organised by his ministry and a chamber of commerce, to attract investments in the region. It needs special mention that this ‘summit’ is 8th in row and questions also galore how far have these ‘summits’ and ‘investment meets’, which entail huge expenditures, been able to attract private sector investments for the region.
The DoNER minister said that despite having large investment opportunities in sectors like hydropower, infrastructure and natural gas, health care, textile and handicrafts, tourism, horticulture and agro-based industries, minerals, and so on, the North Eastern states were yet to witness any major investments in these sectors by private investors.
North Eastern Region, said Ghatowar, continues to be deficit in physical infrastructure viz. road, rail and air connectivity. “Even telecommunication revolution that is changing lives of people in rest of the country has not adequately penetrated deep in North Eastern states. Most of projects, specially relating to physical infrastructure, have long gestation period, resulting in time and cost overrun and hence top priority should be accorded to expeditious completion of incomplete ongoing projects especially in roads, rail, telecommunications and power sector,” Ghatowar said.Mizoram during 11th Plan which was an improvement over 10th Plan growth of 5.7 per cent in Mizoram. Agriculture particularly floriculture and horticulture had done well in Sikkim.
Commissioning of power projects in Sikkim during 11th Plan was also responsible for impressive growth in Sikkim. Agriculture was also the growth driver in Tripura and Manipur.
