Uttarakhand seeks extension of area-based incentives

Ahead of the Union Budget, the clamour for extension of area-based incentives for the hills is growing in Uttarakhand.

From industry associations to political parties, all are seeking extension of the special industrial package 2003 in the hill state which is expiring on March 31.

Prime Minister Manmohan Singh has given his assurance to Chief Minister Ramesh Pokhriyal Nishank who had met him several times on the issue.

On the other hand, Nishank has claimed that Industries and Commerce Minister Anand Sharma recently sent a proposal to the Finance Ministry recommending extension of the special industrial package.

Nishank has asked the Prime Minister to extend the industrial package till 2030 keeping in view the tough geographical conditions and rapid migration from the hilly region of the state.

Following the special tax holiday scheme of January 2003, an industrial boom was witnessed in Himachal Pradesh and Uttarakhand. In Uttarakhand alone, companies like Tata Motors, Bajaj Auto, Nestle, Mahindra and Mahindra, Britannia, LG has set up units to take the benefits of the various tax incentives given by the Centre.