Guwahati, June 6: Federation of Industry and Commerce of North Eastern Region (Finer) - the apex industry association of the Northeast - has urged the new state government to push the Centre to restore the Northeast Industrial and Investment Policy (NEIIPP) 2007.

Addressing a news conference here today, Finer chairman R.S. Joshi said they had met Assam industry minister Chandra Mohan Patowary on May 27 and raised this issue.

"The minister assured us that he would take up the matter with the Centre. He was optimistic that the Centre will revoke the suspension of NEIIPP very soon," Joshi said.

Finer says the policy should not only be restored but also extended suitably so that the losses incurred because of its suspension can also be made up. The Narendra Modi government had suspended fresh registration of industrial units to claim benefits of the schemes under the NEIIPP with effect from 2014, citing that committed liabilities under the package were far greater than the annual budget allocation.

The Centre had announced a package of fiscal incentives under the NEIIPP with effect from April 1, 2007, for a period of 10 years to promote industrialisation of the northeastern states, leading to overall growth of the region.

Some of the salient features of the policy are grant of central capital investment subsidy at the rate of 30 per cent of investment in plant and machinery, central interest subsidy at the rate of 3 per cent of working capital loan availed of for a period of 10 years from the date of commencement of commercial production, reimbursement of insurance premium paid towards insurance of fixed capital assets for a period of 10 years, excise duty exemptions for a period of 10 years and income tax exemption for a period of 10 years.

Joshi said industrial development of the state as well as the region had suffered a setback as the Centre had suspended the policy.

Finer vice-chairman Amit Jain said the state had to lose prospective investment of nearly Rs 1,000 crore over the past three years as several investors had gone back because of clearance delay and lack of assurance for adequate power supply and suitable land.

Finer, however, lauded the new government for passing the Assam Ease of Doing Business Bill, 2016, in its first Assembly session.

"Launching of a single-window portal will not only attract new investments in the state but also facilitate entrepreneurs by processing applications quickly and issuing clearances without delay," said Joshi, adding that notifications operationalising the Ease of Doing Business Act would be issued in a time-bound manner.