Assam loses Rs 1,000 cr on lack of ease of doing biz environment

Industry cites red-tapism, lengthy clearance procedures, unnecessary rules and regulations for lost investment

Lack of ‘ease of doing business’ had hurt Assam’s industry badly in past few years. According to industry estimates, the state lost investments to the tune of Rs 1,000 crore in past three years due to absence of ‘ease of doing business’, unavailability of land, poor power scenario and suspension of the Centre-sponsored North East Industrial and Investment Promotion Policy (NEIIPP). 

Red-tapism, lengthy clearance procedures, unnecessary rules and regulations have been cited as reasons by the industry hampering industrial growth in Assam in past. However, with the new government coming to power in Assam, it said there appeared a “ray of hope” now. The new government had tabled ‘Assam ease of doing business’ bill in the assembly soon after assuming power, thus sending positive signals to the industry. 

Terming the business environment in past three-four years in Assam as “gloom-filled”, Amit Jain, vice chairman of Federation of Industry and Commerce of North Eastern Region (FINER), said many outside investors had to withdraw their proposals in recent past due to various bottlenecks and move to other states, including two Northeastern states of Sikkim and Tripura.

“We have lost few years remaining stuck in various bottlenecks. There have been negative feelings about Assam in outside states. But now there appears a ray of hope now with the new government showing the intent to promote entrepreneurship,” Jain said. 

Welcoming the tabling of the ‘ease of doing business’ bill, Confederation of Indian Industry (CII) said: “ The decision of the new government to table this bill in its very first day of the session sends much needed positive signal to all the prospective investors. It also shows the clear   intention of the government working towards the growth and promotion of industries in the state.”

RS Joshi, chairman of FINER, has put forth the suggestion to the new government to come up with a ‘start-up’ Assam programme to encourage entrepreneurship.

“A campaign based on an action plan at promoting financing for start-up ventures to boost entrepreneurship and encourage start-ups with objective of augmenting job creation should be taken up,” Joshi said. He added that Guwahati city not only merits to be a ‘Smart City’ but also “has the potential” to become the first start-up city of Northeast. 

The ‘ease of doing business’ bill proposes to have a ‘single window agency committee’ which will be responsible for all clearances, and setting up  of Assam Bureau of Investment Promotion (ABIP) under the chairmanship of the chief minister of Assam. 

“This legislation will dramatically change the industrial climate in the state and is a very welcome move particularly for the prospective investors,” said SK Barua, chairman of CII’s Assam state council. The new industry minister, Chandramohan Patowary, has asked the state’s industry bodies to come up with inputs to formulate a new industrial policy for the state.