Setting out Policy Objectives

Promotion of Industrial Investment in Tripura :

 

Appropriate Incentives

While the valid causes for slow growth in industrial investment in Tripura could be several ; the basic overriding constraint, specially for Tripura, is the serious transportation bottleneck and the resultant high transportation costs. Thus, addressing transportation related deterrents has to be necessarily factored into any approach for industrialization of Tripura and the NE Region, if any significant outcomes are to be achieved.

The other requisite step would be to resolve the transportation bottleneck. This would require restoration of cost effective transportation links; development of air connectivity based links for products that are amenable to air freight to overcome difficult terrain and road conditions ; and subsidizing air freight as part of Transportation subsidy – upto nearest hub ( Kolkata ) for domestic as well as export air freight traffic.

The impact of the North-East Industrial Policy 1997 had been positive, going by the experience in Tripura. The state has seen investments of size well over 1 crore ; all of them after introduction of NEIP, 1997 only. These include units for rubber, steel, cement, essential oil etc. ; and proposed units in ceramics and glass. It had also generated several additional enquiries / proposals in the initial years (1998-2001).

This again underlines two facts – that the cumulative handicaps faced by the North-East are greater than any other part of the country ; and thus incentivization levels have to be comparatively higher to attract investments ; and that the transportation bottleneck impacting access to resources and major markets is the most significant inhibiting factor for industrial investment in Tripura, as well as the North-Eastern region.

It is therefore required to incentivize industrial investment in Tripura and the North-Eastern Region commensurate with the handicaps suffered. These may be through direct incentives to the investors and through indirect support by developing required infrastructure and facilitation of access to product major markets. These may also focus upon the regions / state’s resources and requirements for specific incentives [ e.g. for rubber, food processing, forest produce based, natural gas based etc. industries ].

Within this broad outline, in April 2007, Ministry of Industrial Policy & Promotion, Government of India in its “North East Industrial Investment Promotion Policy 2007” (NEIIPP’ 2007) had declared various incentives and subsidies for enterprises in the region which also extends to Tripura. Thus, the primary objectives as well as prerequisite of State incentive package would be to supplement NEIIP’ 2007 and bridge the gaps wherever it exists.

"Tripura Incentive Scheme-2007" would be introduced to replace "Tripura Incentive Scheme-2002" in line with the Micro, Small, Medium Enterprise Development (MSMED) Act 2006 of Government of India, enterprise and just not industry will be the targets of development.

At the helm a High power state committee would be formed to monitor implementation, review and sanction all claims within one month of submission. Concomitant to the subsidies declared under this policy, budget provisions would also increase. A Micro, Small, Medium Enterprise Facilitation Council would be notified as provided in MSMED Act 2006 to address problems and grievances.