Assam govt clears three investment proposals amounting to Rs 464 cr

The three investment proposals were from Ajanta Pharma, Ecotech Papers and Northeast Nutrients

The Assam government has given its go-ahead to three private sector investment proposals to set up plants in the state. The three proposals all together amounts to Rs 464 crore. The three investment proposals were from Ajanta Pharma Limited (APL), Ecotech Papers (EP) and Northeast Nutrients Pvt Ltd (NNPL).

The decision to clear the three investment proposals was taken at a meeting of high powered committee yesterday which was chaired by state’s chief minister Tarun Gogoi.

Mumbai-based Ajanta Pharma Limited would be setting up a pharmaceuticals (allopathic medicine) manufacturing unit at Palasbari in Kamrup district with an investment of Rs 177.67 crore. The firm is expected to generate direct employment to around 800 people.

The meeting also cleared the proposal of Assam-based Ecotech Papers for a kraft paper manufacturing unit at Kamalpur in Kamrup district with an investment of Rs 140.19 crore and a direct employment generation of 147 persons.

It also gave the go-ahead to a proposal of North East Nutrients Private Limited for setting up a unit for manufacturing of biscuits at Ramhari village in Darrang district with an investment of Rs 146 crore, which would create direct employment for about 700 persons.

The high powered committee, constituted under the Industrial and Investment Policy of Assam, 2014, discussed the status of the projects that were already granted ‘Mega Status’ and also the status of applications in the pipeline. All the three projects that were cleared yesterday have been given the status of ‘Mega Projects’.

While announcing the state industrial policy in 2014, the state government said it would accord ‘Mega Project’ status to projects whose investment size would be at least Rs 100 crore and would dole out additional incentives to those projects.

The committee felt that suspension of registration under the North East Industrial and Investment Promotion Policy (NEIIPP) 2007 since December last year has affected the investment scenario in the state “very adversely”.

NEIIPP was an extension of the previous North East Investment Policy (NEIP) which was announced in 1997 by the central government with a ten-year term period. NEIIPP was announced in 2007 and was due to end in 2017. However, a circular by the Centre dated December 1, 2014 had suspended registration of new units under the policy.

The industry of the region too had expressed its surprise at the sudden and 'arbitrary' decision of the Centre to suspended registration of new units under NEIIPP. However, the existing units would continue enjoying the incentives and benefits till the expiry of the policy.

As against a growth of 0.42% in manufacturing sector of India from 2011-12 to 2013-14, the growth in Assam during the same period had been 6.95%. The growth in service sector too had been higher in Assam than the national average during the same period. The industry of the region attributes the above national average growth in both manufacturing and service sectors to the Centre sponsored industrial policy.

As per the provisions of the industrial policy, units set up in the region enjoyed 100% income tax exemption, 30% capital investment subsidy, excise duty benefits, interest subsidy, etc.