Himachal Pradesh Chief Minister Virbhadra Singh on Monday requested Prime Minister Manmohan Singh to restore the industrial package of the State till the year 2020 to remove regional disparity in the field of industrial development and create employment avenues to youths in the State.
Virbhadra Singh said that special package to the industries was introduced in the year 2003 for the period of 10 years till March 2013. However, the incentive of central excise duty was withdrawn in March 2010 and income tax incentive was withdrawn in March 2012.
He apprised the Prime Minister that these incentives to special category states were not adversely affecting the industrial development of bigger states and told that about 16500 units in small, medium and large scale sector with the proposed investment of Rs 48,830 crore having employment potential of 5,42,580 persons was approved between January 6, 2003 to March 31, 2013.
However, out of these approved units only 9,353 units with investment of Rs 14,557 crore having employment potential of 1, 20,602 persons were actually set up in the state, he added. He said that state government had made massive investment to improve infrastructural facilities in industrial areas to facilitate the industrial investment.
Chief Minister requested Prime Minister to release the full amount of Rs 2,100 crore Special Plan Assistance to the state for financing the annual plan of Rs 4,100 crore to speed up the pace of development in the State. He requested SPA/SCA of Rs 2,100 crore for the annual plan 2013-14 as the state had suffered huge loss due to adverse recommendations of the 13th Finance Commission.
He said that Himachal Pradesh had got only 50 percent increase in the total devolution of funds by 13th Finance Commission over 12th Finance Commission in comparison to 126 percent increase to all other States and the State was deprived of additional transfer of Rs 10,725 crore during the award period of 13th Finance Commission between the year 2010-15 and requested to provide SPA/SCA to fund the State plans to compensate the State. The Chief Minister also requested to provide uniform funding in the ratio of 90:10 in Centrally Sponsored Schemes for all Special Category States.
He said that at present the funding under Sarv Shisha Abhiyan (65%), Mid Day Meal Scheme (75%), Indira Awas Yojna, Rashtriya Madhyamik Shiksha Abhiyan (75%), Swaran Jayanti Gram Swarojgar Yojna(75%), Nutrition Component of ICDS (50%) and the Ambulance Service Under NHM (20%) is less for Himachal Pradesh compared to other special category states in North East.
He requested that funding pattern for all special category states should be exactly at par with North Eastern States. He also requested to issue guidelines to all Central Ministries to modify the guidelines for the existing schemes and adopt uniform norms for all Special Category States.
Prime Minister Manmohan Singh assured the delegation that all the demands of the State Government like extension of Industrial Package, Special Plan Assistance, strengthening of Rail Network will be positively considered by the Central Government in time bound manner to increase the pace of the development in the region and fulfill the aspirations of the people from present Congress Government.
Notably, Union Commerce Minister Anand Sharma, who was in Shimla on Sunday to hold consultations with State Government functionaries on industrial development projects, had announced that the capital investment subsidy on plant and machinery for Himachal Pradesh and Uttarakhand would be extended till March 31, 2017, to accelerate industrial growth of the hill states.