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Industrial package for HP, Uttarakhand under consideration: Sharma

Updated: Apr 25, 2013 06:23:15pm
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New Delhi, Apr 25 (KNN) The issue relating to the extension of the industrial tax package to Himachal Pradesh and Uttarakhand “is under consideration of the Government,” Commerce and Industry Minister Anand Sharma said in Parliament.

The special industrial package was under implementation for the two states since 2003 and has ended on January 6, 2013.

Sharma who hails from Himachal Pradesh, said his ministry had supported the requests from the hilly states for extension of special package to the industries.

However, the Ministry of Finance has not acceded to the request, he said.    

According to the Planning Commission, under the package, Central Investment Subsidy, Central Interest Subsidy, Comprehensive Insurance Subsidy and exemption on income tax and excise duty are given to industrial units established in states.

Earlier, Himachal Pradesh Chief Minister Virbhadra Singh had written to the Prime Minister, Finance Minister and Commerce Minister on January 6, 2013 requesting extension of the package till 2020.

In the letter, he had expressed apprehensions about likely exit by industries after the expiry of package.

Besides, the Chief Minister had also requested the Centre for certain policy measures on the pattern of north eastern states under North East India Project (NEIP) policy 2007 and for the state of Jammu and Kashmir wherein policy initiatives have been provided by the Union government on a holistic perspective.

However, neighbouring states like Punjab has opposed extension of such packages.   

Punjab Chief Minister Parkash Singh Badal has recently said that Punjab had suffered a lot because of the industrial package given by the Central Government to the neighbouring states of Himachal Pradesh, Uttarakhand and Jammu and Kashmir owing to which the industry had relocated from Punjab to these states.

He further said that though he was not against any such package given to the states, he wanted Punjab to be duly compensated by allowing a similar package to offset the colossal loss suffered due to the concessions. (KNN) 

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