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STAFF REPORTER
GUWAHATI: The Northeast, it seems, has not been a green pasture for investors for over two years because of many reasons – its existing industrial policy is bereft of incentives, there’s a severe trust deficit between the private sector on one hand and the government and banks on the other, besides the lack of efficient bank professionals in the region that is infamous for punishment posting to mention but a few.
The Government of India started a five-year North Eastern Industrial Scheme (NEIDS) from April 1, 2017 to March 31, 2021 to woo new industrial units in service and manufacturing sectors in Assam and other States in the Northeast. However, two years have elapsed, but NEIDS has found no takers among investors.
FINER (Federation of Industry and Commerce of North Eastern Region) moved Union Finance Minister Nirmala Sitharaman during her recent visit to Guwahati with a slew of suggestions. It sought her intervention for the rescue of the region from the current industrial drought. In a memorandum submitted to her, the FINER said: “Private sector investment is simply not happening in the north-eastern region. There were industries coming to the region earlier under the NEIIPP, 2007, but the NEIDS has been a flop. Incentives are required in the region to boost industrialization. The units that have come in are not getting the IGST/CGST refunds as per the NEIDS. It is seen and felt that MSME units wouldn’t be benefited much by this scheme.”
FINER has suggested a separate policy in the region for the growth of MSMEs.
Criticizing the role of banks FINER said, “The private sector doesn’t trust the government and banks, and banks don’t trust the private sector. There’s a severe trust deficit. Best bank professionals are a scarce in the region. It shouldn’t be a dumping ground or a place for punishment posting of officers. Land-related issues in the region also impede and delay credit growth. There needs to be uniformity in land records and records of titles etc. These should be linked to Aadhaar for knowing actual quantum of land holding by each beneficial owner.”
The situation in Assam has come to such a pass that many industries have already been closed and some are on the verge of closure. The State government has not been able to reopen APOL textile mill at Rangiya. While the government has created a few new industrial estates in the State, the existing ones are on the verge of closure. It is crystal clear that the State government has failed to woo investors.