A parliamentary panel on commerce has asked the department of commerce to ensure that the quantum of employment generated by industrial units seeking benefits under the North East Industrial and Investment Promotion Policy (NEIIPP) should be a criterion for extending benefits to them.
This was stated in the department-related parliamentary standing committee on commerce report, presented recently in Parliament, on the action taken by the government on the observations or recommendations of the department of industrial policy and promotion under the Union ministry of commerce and industry.
A package of fiscal incentives and other concessions for the northeastern states, NEIIPP, was effective from April 1, 2007, with the objective of promoting industrialisation in the region’s states.
The department in its report said the financial package had certainly given a fillip to industrialisation in the Northeast, which is evident from the investments that have poured in after the announcement of NEIIPP 2007.
“Setting up of industries leads to both direct and indirect employment. However, the prime objective of the package is to promote industrialisation in the states of the region and not employment generation,” it said.
The committee said every model of economic growth that envisages industrialisation as one of the components for achieving such growth could not discount the quantum and quality of employment generation as its end-result, as employment generation, in turn, results in greater consumption and sparks further growth of economy.
“Any industrialisation without any positive effect on employment generation is a sham. The committee, therefore, strongly recommends that the department should ensure that quantum of employment generated by the industrial unit seeking benefits under various interventions for industrialisation under NEIPP 2007 must be made an important criterion for extending benefits to these units,” it said.
It said this was all the more important in view of the fact that Northeast was still one of the backward regions of the country and every initiative of the government must aim to better the living standard of the people there.
“The department must become sensitive to the fact that in the current situation, the Northeast is not looking for mass production but for establishment of facilities for production by mass. The committee, accordingly, recommends that the department should come up with suitable schemes/programmes in this regard,” it said.