Political posturing has begun over the Central concessional industrial package for Uttarkhand which expires on Wednesday night.

Chief Minister Ramesh Pokhriyal Nishank has claimed that the Centre has curtailed the package, which was originally meant for 10 years till 2013, without giving any substantial reason. The ruling BJP's ally Uttarakhand Kranti Dal accused Congress of not safeguarding the interests of the state.

Opposition Congress leader Dhirendra Pratap Singh has threatened to stage an indefinite hunger strike from tomorrow in front of Parliament if the package is not extended.

On the other hand, state Congress president Yashpal Arya has asked Chief Minister Nishank to stage a dharna in Punjab, which is opposing the industrial package.

A delegation of state Congress leaders met party chief Sonia Gandhi in New Delhi on Monday and sought extension of the industrial package which has created an industrial boom in the hill state. Gandhi gave positive indications in this regard, leader of Opposition Harak Singh Rawat said.

Yesterday, a Congress delegation also called on the Prime Minister over the issue. "We have got very positive response from the Prime Minister," Rawat said, adding that the Centre would accept their demand.

Nishank along with his cabinet colleagues recently met the Prime Minister, who assured them that he would refer the matter to the Finance Minister.

With the suspense mounting over the issue, expectations are growing that the Centre may eventually extend the area-based exemptions for some more time.

The Centre has been reluctant to extend the package claiming that it was against the spirit of Goods and Service Tax (GST) which is coming into effect from April next year.

A 10-year CIP was introduced in Uttarakhand and Himachal Pradesh by the NDA government in January 2003. The Uttarakhand government wants the Centre to extend the package till 2020 on the lines of a similar measure offered to northeastern states.

An industrial boom was witnessed in Uttarakhand after the Centre announced the special package in 2003 with top-notch companies like Tata Motors, Nestle, Bajaj Auto and Hero Honda setting up new units in the hill state.

The state government is of the view that the industrial package must be extended otherwise it will adversely affect an investment of over Rs 30,000 crores.