GUWAHATI: North East Industrial Development Scheme (NEIDS) is a flop and has failed to bring investors to the the region, a local industry body has written in a letter to Union finance minister Nirmala Sitharaman.

In its submission to the minister, Federation of Industry and Commerce of North Eastern Region (Finer) said that the scheme has failed to boost the private sector investments in the region. 

"There were Industries that were coming in the region earlier under North East Industrial Investment Promotion Policy 2007 (NEIIPP) and North East Investment Policy (NEIP) but NEIDS has been a flop. Incentives are required in the region for boost industrialization," the letter read. 

It further said that industries were not getting the GST refunds as outlined in the scheme. 

“The units that have come in are not getting the IGST / CGST refunds as per the scheme. In Direct tax, amendments made in last few years are to put its subtly, “regressive” in nature, " the industry body said. 

“Till as recently as two years, the returns like Sahaj, Saral were there, these forms were of 2-3 pages. Now from this year the return has been made with 30-40 pages which are very difficult to fill up the return forms. Rs 1,000, Rs 5,000 & Rs 10,000 of late filing if not filed within due dates. When you are taking the penal interest, what is the need of late fine. This should be done away with,” it added. 

Finer also said that the powers of Survey and Search and Seizure should be used sparingly and not in a routine manner. 

"There is a lack of co-ordination between the Assessment wing and the Investigation wing of the department. This needs to be improved, " it said. 

The industry body also urged the finance minister to augment power in the region's banks. 

“Most banks in the North East have very limited power structure delegated to the North East. It is important that powers be augmented so that quick decisions are taken in the region itself. SBINSE -0.29 %, which is the principal banker in the region, had delegated power structure in the region for decades which helped the bank to garner a lion’s share in the market, which has been undone, last year," Finer said. 

It also asked the minister to resolve land related issues. 

"Land related issues in the states impedes and delays credit growth . There needs to be an uniformity in Land records and record of title etc of land. These should be linked to Aadhaar for knowing the actual quantum of land holding by each beneficial owner,” it said. 

Published On : 29-08-2019

Source : The Economic Times