Guwahati: Nine months have passed away, but there is no news of the new industrial policy for the Northeast. And worryingly, there are no answers yet from the Centre, which never misses a chance to talk about boosting industrialisation in the Northeast.
The North East Industrial Development Scheme( NEIDS), which expired on March 31 this year, has still not been renewed. There are fears in the industry circles in the region that delays will dissuade investors from coming into the region.
The result is that the share of investment in the NE under the North East Industrial and Investment Promotion Policy( NEIIPP) 2007, which was 8.3 per cent in 2017, has slipped to 0.13 per cent in 2021.
Speaking at the third North East Dialogue- an interactive meet with North East Members of Parliament on December 15 in New Delhi, Union Minister of Law and Justice Kiren Rijiju, also the chairman of NE MPs Forum, said he understands the growing need for new and better policy and how it can impact the growth and development of the region. He assured full commitment and support of the NE MPs Forum to push for a better policy and other development agenda for the Northeast.
The meeting was organised to discuss the policy dispensation; the need for attractive policies and investments in NE, the Startup ecosystem in North East India and other development imperatives required for the region to catapult the region to a higher growth trajectory.
The Standing Committee on Commerce in its 175th report placed in the current session of the Parliament 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 the accelerated industrial development of the North Eastern Region and also to compensate for the disruptions in the implementation of the scheme during the last two years due to the COVID-19 pandemic. The Committee, therefore, recommends the department consult industry stakeholders and concerned State Governments for the 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, the Federation of Industry & Commerce of North Eastern Region (FINER) have been expressing their strong dissatisfaction with the North East Industrial Development Scheme (NEIDS), 2017.
Further, on the request of the Department of Expenditure, Ministry of Finance, and 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 the timeline till 31st July 2022 for submission of a draft report. The extension has been granted by DMEO as per the 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 restricted the mobility of the survey team, thereby derailing the data process,” the report says.
A total of 530 new industrial units have been granted registration under NEIDS. As per provisions of the scheme, the industrial units are allowed to start commercial production within 18 months of the grant of registration, and thereafter, they can file their claims within one year from the date of commencement of commercial production under the Central Capital Investment Incentive for Access to Credit.
Many MPs of the North Eastern Region cutting across party lines were present at the NE MPs forum meeting, including Biplab Deb, former Chief Minister, Tripura and MP, Rajya Sabha graced the occasion. Secretary Doner Lok Ranjan and other officials of DPIIT were also present in the meeting sharing their views.
Other than legislators and lawmakers, senior representatives from foremost departments and ministries like the Technology Development Board, Department of Science and Technology, Invest India, Ministry of DONER, Ministry of Food Processing, Department of Promotion of Industry and Internal Trade, eminent bankers like ex-chairman of SBI, Rajneesh Kumar, were also present.
Bajrang Lohia, President FINER, mentioned that the meeting’s key objective is to revisit the challenges and opportunities of the North-East Region and to join hands across party lines, brainstorming and resolving, so that the developmental agenda for the North East is jointly pursued.
He further said the region needs investments more than ever before and awaits a new invigorating policy to kickstart the investment cycle in the region. He also said it is vital of the importance of expediting infrastructure and connectivity work and addressing issues of border points to make the Act East Policy a reality.
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The meeting delved into and discussed creating a consensus to urge for a new industrial policy with enhanced incentives for a minimum of ten years, additional incentives for the MSME sector and ease out transportation bottlenecks increasing and the developing of waterways to spur trade with South Asia and South East Asia.
Rajeev Agarwal, Vice-President of FINER gave a brief presentation on the need for attractive polices and investment in the region. He presented the views of the industry capturing the enablers to build a robust ecosystem to spur industrial growth and highlighted the sectors with a competitive advantage.
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