Gogoi concerned as NEIIPP suspension order not yet revoked

Assam Chief Minister Tarun Gogoi has raised concerns over the issue of suspension of registration of units under the Centre-sponsored North East Industrial and Investment Promotion Policy (NEIIPP), 2007.

In a letter to Union commerce and industry minister, Nirmala Sitharaman, Chief Minister Gogoi requested her to withdraw the circular on suspension of registration of units under NEIIPP, 2007 as it would "not only affect the industrial sector but also the economy of the entire North Eastern region". "Such abrupt decisions erode the credibility of government," said Gogoi.

Gogoi pointed out about the clarification made by the department of Industrial Policy and Promotion (DIPP), under the Union ministry of commerce and industry which stated that the schemes under NEIIPP "have neither been cancelled nor withdrawn", yet the suspension of registration under it has not been withdrawn. Gogoi said though the state government has taken up the matter with DIPP, a positive response is still awaited.

In her reply to Gogoi's letter, Sitharaman while taking note of the chief minister's concern, said that fresh registration under NEIIPP, 2007 has been suspended due to resource crunch. She also reiterated that subsidy claims under NEIIPP, 2007 would be considered based on budget allocation of the department.

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 undersigned is directed to convey that with the approval of competent authority, it has now been decided to suspend registration under the schemes of North East Industrial and Investment Promotion Policy (NEIIPP), 2007 with immediate effect till further order(s)," stated a circular issued by the under secretary of government of India dated December 1.

The circular was addressed to commissioners and directors of industry departments of all northeastern states.