"Shift from state-specific to regional incentive policy likely"

The Government of India may have a re-look at the tax incentives being offered to new industries for special category states, according to Sontosh Mohan Dev, Union minister of state for heavy industries and public enterprises.

Talking to mediapersons here on Saturday, the minister said that there could be a change from state-specific to regional incentive policy. "Kamal Nath is going to announce the country's new industrial policy where these issues are going to be addressed," he said while replying to a query on the contentious central tax incentives.

There is a demand to extend similar incentives from other states like Punjab and Haryana too, he said.

It may be recalled that several states including Andhra Pradesh have expressed serious concern over the central tax sops for special category states like Himachal Pradesh, citing problem of migration of industrial units from their present locations to those states.

There are talks that the Centre may also consider closing the incentive policy by a year ahead in 2006 by settling tax issues with new units.

On BHEL's disinvestment, the minister said that the government intends to make BHEL a global player and that the present status of PSUs will not be disturbed despite disinvestment. He said that the sentiments of BHEL employees, who have opposed the Centre's disinvestment move, would be conveyed to the authorities in New Delhi.

Backing the state government's stance against the proposed merger of Vizag Steel Plant with the SAIL, the minister said that the unique identity of Vizag Steel, which is one of the best seacoast steel projects in Asia and is the only project in the entire South India, should be kept intact.

"Let us hope disinvestment does not take place in Vizag Steel either," he said.