U'khand CIP expires on Wednesday -Governance Now

U'khand CIP expires on Wednesday

Concessional industrial package to go tonight even as hill state waits for extension

PTI | March 31, 2010

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.

Comments

Other News

Maharashtra adopts hybrid model for Census 2026 data collection

The government has initiated preparations for Census 2026 in Maharashtra, introducing a hybrid approach that combines optional self-enumeration with comprehensive door-to-door data collection to ensure complete coverage across the state. According to senior officials, the Self-

What the nine Indian Nobel winners have in common

A Touch Of Genius: The Wisdom of India’s Nobel Laureates Edited by Rudrangshu Mukherjee Aleph Books, Rs 1499, 848 pages

Income Tax dept holds Ghatkopar Outreach on new IT Act

The Income Tax Department organised an outreach programme in Ghatkopar, Mumbai, to raise awareness about the key features of the Income Tax Act, 2025, effective April 1, 2026. The initiative is part of a nationwide effort to promote taxpayer awareness, simplify compliance, and strengthen a transparent, eff

Making AI work where governance is closest to people

India’s next governance leap may not solely come from digitisation. It will come from making public systems more intelligent, more adaptive, and more responsive to the dynamics at the grassroots. That opportunity is especially significant at the panchayat level, where governance is not an abstract po

Borrowing troubles: How small loans are quietly trapping youth

A silent crisis is playing out in the pocket of young India, not in stock markets or government treasuries, but in smartphones of college students and first-jobbers who clicked on the Apply Now button without reading the small print. A decade ago, to take a loan, you had to do some paperwor