Politics over Uttarakhand industrial package heats up

Politics over the concessional industrial package (CIP), which created an industrial boom in Uttarakhand, is heating up.

After the BJP government, it is now the turn of the Uttarakhand Congress to seek the extension of the industrial package.

A delegation of the state Congress leaders today met party president Sonia Gandhi in New Delhi and sought the extension of the package. “We have got positive indications from madam regarding our demand,” said leader of the Opposition Harak Singh Rawat from New Delhi.

Rawat said Gandhi had told them to seek appointment with Prime Minister Manmohan Singh. “We are now meeting the prime minister tomorrow,” said Rawat expressing confidence that the Centre would accept the just demand of Uttarakhand.

On the other hand, Chief Minister Ramesh Pokhriyal Nishank along with his cabinet colleagues met the prime minister today. But sources said the PM did not give any categorical assurance on the issue. “The PM said he would talk to the finance minister on the issue,” said Nishank.

With the suspense mounting over the issue day by day, expectations are growing that the Centre may eventually extend the area-based exemptions expiring on March 31 for some more time. But the main worry before the Centre is that the goods and services tax (GST) is coming into effect from April 1 2011, and the exemptions are considered to be against the spirit of the GST.

Top officials here maintained that since the Centre has already extended the benefits of excise beyond 2011 to Jammu and Kashmir and north eastern states, they can be extended to Himachal Pradesh and Uttarakhand as well.

Under the new provision, the benefits of excise would be given to industries through re-imbursement. Excise rebate is the main component of the CIS, especially in Uttarakhand where industries will not have to dole out any central excise for a period 10 years after the production.