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Plea against transport subsidy cut
- Industry appeals to Delhi

Guwahati, June 13: Three industry associations of Assam have urged the Centre not to dilute the benefits of transport subsidy scheme which is now under review and mired in controversy.

The issue of transport subsidy scheme will be under review at the mid-term appraisal of North East Industrial and Investment Promotion Policy (NEIPP) here tomorrow which will be attended by officials from the Centre and the state governments of the Northeast.

The transport subsidy scheme was announced in 1971 to develop industrialisation in the remote, hilly and inaccessible areas by providing subsidy in transportation cost incurred by the industrial units so that they could stand the competition with similar industries which are geographically located in better areas.

Federation of Industry and Commerce of North Eastern Region, North Eastern Small Scale Industries Association and All Assam Small Scale Industries Association in a letter today requested Shubhra Singh, joint secretary in the department of industrial policy and promotion, ministry of commerce and industry, not to dilute the transport subsidy scheme.

The associations also said there should be no cap whatsoever either on the quantum of scheme or on the transportation cost of raw materials.

Sources said on the basis of performance audit report of CAG, evaluation report submitted by Deloitte Touche Tohmatsu India Ltd, a consultancy firm, and in consultation with stakeholders, revision of the scheme is under consideration. The evaluation had to be done to introduce necessary safeguards to prevent possible leakages and misuse, if any, under the scheme. The associations have demanded that the quantum of transport subsidy should not be linked to employment generation clause because every state government has its own employment policy.

“The NEIIPP, 2007 and TSS are closely inter-linked and industrialisation in the Northeast can flourish only if both these schemes work together. The dilutions made/proposed have the effect of damaging industrialisation in the region,” the associations said in their letter.

It said even after four years have elapsed since the policy had been announced, no formation or the meeting of the cabinet committee has taken place for disposal of the claims that fall under their purview. “This has delayed the process and the banks and other stakeholders are beginning to seriously doubt the efficacy of the announcements, as funds planning in large projects become of paramount importance,” it added. On the implementation of NEIIPP, the associations said the meeting of the empowered committee should also be held at least once in two months.

Three industry associations of Assam have urged the Centre not to dilute the benefits of transport subsidy scheme which is now under review and mired in controversy.

The issue of transport subsidy scheme will be under review at the mid-term appraisal of North East Industrial and Investment Promotion Policy (NEIPP) here tomorrow which will be attended by officials from the Centre and the state governments of the Northeast.

The transport subsidy scheme was announced in 1971 to develop industrialisation in the remote, hilly and inaccessible areas by providing subsidy in transportation cost incurred by the industrial units so that they could stand the competition with similar industries which are geographically located in better areas.

Federation of Industry and Commerce of North Eastern Region, North Eastern Small Scale Industries Association and All Assam Small Scale Industries Association in a letter today requested Shubhra Singh joint secretary in the department of industrial policy and promotion, ministry of commerce and industries, not to dilute the transport subsidy scheme.

The associations also said there should be no cap whatsoever either on the quantum of scheme or on the transportation cost of raw materials.

Sources said on the basis of performance audit report of CAG, evaluation report submitted by Deloitte Touche Tohmatsu India Ltd, a consultancy firm, and in consultation with stakeholders, revision of the scheme is under consideration. The evaluation had to be done to introduce necessary safeguards to prevent possible leakages and misuse, if any, under the scheme. The associations have demanded that the quantum of transport subsidy should not be linked to employment generation clause because every state government has its own employment policy.

“The NEIIPP, 2007 and TSS are closely inter-linked and industrialisation in the Northeast can flourish only if both these schemes work together. The dilutions made/proposed have the effect of damaging industrialisation in the region,” the associations said in their letter.

It said even after four years have elapsed since the policy had been announced, no formation or the meeting of the cabinet committee has taken place for disposal of the claims that fall under their purview. “This has delayed the process and the banks and other stakeholders are beginning to seriously doubt the efficacy of the announcements, as funds planning in large projects become of paramount importance,” it added. On the implementation of NEIIPP, the associations said the meeting of the empowered committee should also be held at least once in two months.


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