Friday, January 9, 2015

Uncertainty over North East Industrial and Investment Promotion Policy worries hospitality sector

The uncertainty over continuation of North East Industrial and Investment Promotion Policy (NEIIPP) 2007 is to hit the growth of tourism industry in North East, the Hotel & Restaurant Association of Eastern India (HRAEI) fears and argues that suspension of incentives available under NEIIPP will not only adversely impact industrial growth of North East, but will also prove a major setback towards integrating North East into the mainstream national economy.
NEIIPP was introduced by the Government of India in April 2007. The policy provides a special package of fiscal incentives, subsidies and other concessions, with the objective of promoting industrialization of North East. The policy covers Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim.
Outlining the positive outcome of NEIIPP recently, Sudesh Poddar, President HRAEI, said that it played an important role in positioning North East as a viable and competitive investment destination for the hospitality sector and helped in attracting capital investment in manufacturing and services sectors.
To sustain the growth momentum, it is imperative for the North Eastern states to draw large investment in the hospitality industry. Infrastructure deficit occurring in the region’s tourism industry in a big way needs early correction. The sudden suspension of incentives available under NEIIPP will put in peril prospective investments of a staggering Rs. 30,000 crore, the organization has highlighted.
In this context, HRAEI President recently submitted a memorandum to Nirmala Sitharaman, Minister of State (Independent Charge), Ministry of Commerce & Industry, urging the government to revoke the suspension at the earliest and dispel any ambiguity over the continuation of NEIIPP.

No comments:

Post a Comment

Readers are invited to comment on, criticise, run down, even appreciate if they like something in this blog. Comments carrying abusive/ indecorous language and personal attacks, except when against the people working on this blog, will be deleted. It will be exciting for all to enjoy some earnest debates on this blog...