Dhumal urges PM to extend Himachal tax holiday

The Himachal Pradesh government has urged the Centre to extend the special industrial package to March 2013.The package is due to expire in March next year.

State chief minister Prem Kumar Dhumal has written to Prime Minister Manmohan Singh, “to deliver justice to the people of Himachal by extending the special industrial package.”

Dhumal said the package announced in early 2003 by the NDA government was for a period of 10 years but was reduced by two years by the UPA government.

He said since the package came into force the state had succeeded in attracting investment proposals of Rs 36,844 crore.  “The ongoing  recession, falling exports, tightening liquidity among other factors had resulted in deferring of projects, thereby slowing down the pace industrial investment,” he said.

The existing incentive of outright exemption from payment of Central excise duty was only suited to a limited category of industries, he said.