Century plywood India Limited promoted, Cement manufacturing company Limited (CMCL) produces cement under the brand name “Star Cement” and Meghalaya Cements Limited are planning to invest Rs 200 Crore in Assam. They are planing to set up units here.

President of Federation of Industry and Commerce of Northeastern Region (FINER) R.S Joshi said FINER will move to New Delhi to register its protest. According to FINER, the notification will affect excise refund to the tune of Rs 700 Crore.” We had a meeting with Assam industry minister, Pradyut Bordoloi. The minister, who is also the convener of the Northeast industry ministers’ forum on the Northeast industrial policy, assured that he will take up the matter with Finance minister, P. Chidambaram,” he said.

Meghalaya chief minister, Donpukar Roy and the forum of all the parliamentarians of Northeast, the Northeast MPs forum are rallying around the trade body in their demand to do away with the recent notification. The Northeastern MPs will raise the matter in the parliament.

Mr Joshi added, “Investments will shy away from the Northeast as in other places like Uttaranchal and Himachal Pradesh the companies will continue to get 100 percent excise refund. All the manufacturing units in Northeast using locally available raw material will be affected by the finance minister circular issued last month,” he said.

He felt that such policy shifting conveys wrong message to the investors. Several industries will be affected by it. The new circular will also negate the provisions of NEIIPP. The government has not taken industry into confidence before taking such decision, he said.

Assam is expecting to whoop an investment of around Rs 1200 Crore in the fiscal year 2008-09. Assam industry and commerce minister Pradyut Bordoloi stated, “There will be a foreign direct investment in Assam very soon.These foreign investments will come through joint ventures in the manufacturing sector. Bordoloi said that M/s Pearl Lifeline Ltd envisages foreign investment to the tune of Rs 12 lakh as promoter’s contribution,” he said. He added that second proposed foreign investment is through another joint venture, CALCOM, which would have German Investment and Development Bank (DEG) investment of approximately Rs 70 Crore, Bordoloi said.
The group has entered into agreements with two strategic investors — DEG of Germany and FMO of The Netherlands — for infusion of fresh capital into Calcom.

During the period, Hindustan Unilever Limited’s (HUL) set up personal care products factory in Doomdooma in Upper Assam. HUL has invested Rs 200 crore in the Doomdooma factory. This unit established in 2001, manufactures products including shampoos, toothpaste and Soaps. HUL’s Doomdoma factory accounts for nearly 20-25 percent of the company’s national production of personal care products. The Company is also setting up Rs 21-crore state of art warehouse facility at Doomdooma.

Union minister of state for industry, Ashwani kumar who was in Guwahati recently assured that that he will take up the issue with the Finance minister and will ensure that that the finance ministry issues requisite clarification in this regard. He added Assam government expressed their concern on the recent notification of the Finance ministry restricting the benefits of excise duty refund in Northeast. He stated that he will assist the Assam government in setting up National institute of design, a bio technology park and plastic park in the state. Mr Kumar further said that Assam government has initiated talks with the Gujarat Cooperative Milk Marketing Federation Ltd for development of dynamic dairy development culture in the state. “I will put some big multi nationals like Nestle and others to explore business opportunities for themselves here,” he said.

The union minister opined that ongoing Assam gas cracker project of GAIL India Limited is expected to be commissioned by 2011-12 and it is expected that the project will attract investment to the tune of Rs 5,000 Crore every year from the year it gets commissioned and will generate one lakh employment. “It has been long time concern of the industries and respective government of the Northeast regarding the clearance of the backlog of the transport subsidy. In last four years, Rs 770 Crore has been cleared. In 2007-08, subsidies to the tune of Rs 596 Crore were released, out of which nearly Rs 300 Crore has been for Assam. Since 1971, Rs 1287 Crore has been released,” he informed.
Expressing optimism, he said Assam is all set to see windfall of investment with the new policy, the Northeast industrial and investment promotion policy in place. “NTPC’s 750 MW power project in Assam is on track and will be commissioned by 2012. The law and order situation in the state has improved significantly. I am going to take to up the matter of expansion of bandwidth in the region, this will trigger the growth of IT industry,” he said.

Sunaina