Fresh battle erupts over industrial sops for hilly states

The Uttarakhand government today once again sought extension of the total Central Industrial Package (CIP) to the hill states of Uttarakhand and Himachal Pradesh, adding that exemptions in excise duty are the most important part of the package.

Amid confusion on whether industries in the two states are still getting concessions or not, chairman of the Uttarakhand state media advisory committee Devendra Bhasin said the state government demanded the extension of total industrial package, including the exemption in excise duty.

"This (exemption in excise duty) is the most important part of the package that attracts industries to set up their units," Bhasin said in a statement in Dehradun.

In this regard, he said although income tax holiday and capital subsidy have not been ended, industries would not find any attraction in setting up their units as exemptions in excise duty is the major part of the package.

Two months back, Uttarakhand chief minister Ramesh Pokhriyal `Nishank' with his 11-member cabinet had gone to Delhi to ask Prime Minister Manmohan Singh to providing extension of the CIP for Uttarakhand. But adding confusion to the controversy, union minister for commerce and industry Anand Sharma said in Shimla on Saturday that the centre had never cancelled the CIP granted to the two states in 2003, and that the state governments were deliberately creating confusion on the issue.

Sharma's statement has now led to a fresh spat between the opposition Congress and state BJP government in Uttarakhand on the issue of the CIP.