NE waits for New Industrial Policy

Guwahati: When is the new industrial policy for Northeast going to come about?

Well, there are no answers yet by the Centre which talks a lot about on boosting industrialisation in the Northeast.

The North East Industrial Development Scheme (NEIDS) which expired on March 31 this year has still not been renewed and there are fears in the industry circles in the region that delays will dissuade investors from coming into the region.

The share of investment in Northeast was 8.3 per cent of the national share in 2017 under North East Industrial Policy ( 2017) while the percentage of national share of Northeast came down to 0.2 per cent in 2019 under the NEIDS.

The NEIDS 2017, was notified on April 2018 for a period of 5 years till March 31, 2022 with an aim to boost industrialisation ( in both manufacturing and service sector) in the North Eastern States.

The Standing Committee on Commerce in its 175th report says: " The Department has not furnished any information regarding its continuation beyond the stipulated date. The Committee is of the view that the extension of the scheme for a longer time is crucial for accelerated industrial development of North Eastern Region and also to compensate for the disruptions in implementation of the scheme during the last two years due to COVID-19 pandemic. The Committee, therefore, recommends the Department to consult industry stakeholders and concerned State Governments for extension of the scheme beyond April 1, 2022 so that new registrations can be granted to industrial units.

The Committee in its report says the State Governments of North East and specifically Federation of Industry & Commerce of North Eastern Region (FINER) have been expressing their strong dissatisfaction about the North East Industrial Development Scheme (NEIDS), 2017.

Further on the request of Department of Expenditure, Ministry of Finance, the Development Monitoring and Evaluation Office (DMEO), NITI Aayog has been entrusted with the evaluation study of NEIDS, 2017, which is underway in consultation with nodal agencies at State and District levels, Industrial Associations, District Industries Centres, North Eastern Development Finance Corporation (NEDFi) and Audit Agencies for NEIDS.

"It has been informed by DMEO vide Email dated 04.07.2022 that the Consultancy Firm was expected to submit a draft report on the evaluation of NEIDS by the end of June. But due to unforeseen circumstances prevailing in Assam, the consultancy firm has sought an extension of timeline till 31st July, 2022 for submission of a draft report. The extension has been granted by DMEO as per MESD-2021 guideline. It is proposed to formulate a new Scheme for the North Eastern Region after examining the report on the evaluation of NEIDS and in consultation with concerned State Governments and other stakeholders" the report says.

And what was the unforeseen circumstance prevailing in Assam- "The red alert declared by IMD in Assam which restricted the mobility of the survey team thereby derailing the data process" the report says.

" There is still no clarity on the new policy. We have been demanding at every forum, but there has been no assurance by authorities on notification date" a leading industrialist told BusinessNortheast.

As on Nov 30 this year, 858 industrial units have been granted registration to avail benefits under NEIDS. The total investments by the 858 industrial units amounts to Rs 6436.62 crores. However no claims have been received from state governments under GST component of the scheme so far. However, as on date, 28 claims under the GST component have been received at the level of District Industries Centres of the concerned state governments.

As per provisions of the scheme , the industrial units are allowed to start commercial production within 18 months of grant of registration and thereafter they can file their claims within one year from the date of commencement of commercial production under Central Capital Investment Incentive for Access to Credit.

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