The North East region is one of the industrially backward region in the country. So friends, in today’s article we are going to know about North East Industrial Policy 2007 (Industrial policy of India). So let’s discuss in details.
Table of Contents
North East Industrial Policy 2007
In order to develop industrial sector in the entire North-East India, the Ministry of Commerce and Industry announced a new industrial policy. The main important objective of the policy are mentioned in the following grounds-
• 100% income tax exemption will be given for the industrialists.
• All new as well as existing units going for expansion.
• The incentives under the new industrial policy will be available to all industrial units in the North-East, whether they are big or small.
• The new industrial policy provides importance on the modification and diversification of all industries in the North East.
• 100% excise duty exemption will be given on finished products made in the North East.
• Capital investment subsidy will be enhanced from 15% to 30% and the limit for automatic approval of subsidy will be enhanced from Rs.30 lakh to 15 crores. Such subsidy will be applicable to units in the private sector, joint sector, co-operative sector, as well as government sector.
• Interest subsidy will be made available at the rate of 3% on working capital loan.
• The new industrial policy will also provide insurance facilities to the new and existing industrial units in the North East.
• Some industries will not receive the above mentioned facilities. These industries are Tabacco, processing, Pan masala, plastic carry bags and goods reproduced by refineries.
• Special importance will be given to some non-traditional services based industries in the north east. They are information and technology, bio technology, nursing home, old age home etc.
• Vocational training institutes have also been included in the new industrial policy. Such as hotel management, nursing and paramedical, fashion designing, etc.
• In order to look after North-Eastern development finance nodal (main) energy will be created. It is called North-Eastern Development Finance Corporation Ltd (NEDFC).
It is expected that new industrial policy for the North-East and region and its incentive packages are implemented wish sincerity and dedication.
It will definitely go a long way for reversing the present trend in industrial sunario of the region and will also be able to raise the level of industrial activity in the NE region.
Industrial Policy 1997 (North-East India)
The North-Eastern region is an industrially backward region in India. In order to developed its industrial base the government of India announced the new industrial policy in 1997.
Here special has been given on the expansion of industries in the context of LPG policy. The major provisions of the new industrial policy were –
• 100% income tax exemption for a period of 10 years.
• 100% excise duty exemption for 10 years.
• Interest subsidy of 3% on working capital loan.
• Transport subsidy on the transportation of good.
• Capital investment subsidy of 15% investment in plant and machinery subject to a maximum of Rs.30 lakh.
• A comprehensive insurance scheme facility for the new and existing industries.
• Proper consultancy services for expansion of industries.
• Special attention is given on the SSI.
Failures of Industrial Policy in the North East India
The major failures of industrial policy in the North-East region are mentioned in the following grounds-
• Most of the government’s incentives failed to produce any desired result because of the region’s poor power, financial, transport, law and order situations.
• The main failure for industrial development is the lack of favourable climate for investment in the region.
• The government did not provide adequate importance on the rich traditional sector of the each and every North-East state. Here special cases has been given only for Assam. It is responsible for the poor industrial growth in the North-Eastern region.
• Abnormal delay in payment of the subsidy also create problems for the industrialists in the region. The delay in releasing the subsidy affected the projects. Thus administrative inefficiency is a major failure of the industrial policy.
• Lack of government will is another responsible factor for the failure of industrial policy in the region.
Conclusion
So friends, this was the concept of North East Industrial Policy 2007. Hope you get the full details about it and hope you like this article.
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