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. Suspension of incentives available under NEIIPP will not only adversely impact industrial growth of North East but it will also amount to a major setback to integrating North East into the mainstream national economy, opined the Hotel & Restaurant Association of Eastern India (HRAEI) in a press release.
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, 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. It has had a positive multiplier effect on the region’s economy, by way of large-scale job-creation, youth empowerment through increased opportunities of skill development, infrastructure augmentation, strengthening social stability. It also generated substantial revenue for the exchequer.
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 crores, the release added.
In this context, HRAEI President has 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.
