SHILLONG, July 2 ? Countering criticisms that the Export Promotion Industrial Park (EPIP) in Byrnihat near Guwahati has benefitted only the outside entrepreneurs, Meghalaya Chief Minister DD Lapang has asserted that the Park has benefited the State immensely and that more benefits would accrue in the coming years. He said that incentives are being given to the units in EPIP and other declared ?industrial areas? to attract industrial investment proposals so that with the growth of industries in the State, benefits would accrue to Meghalaya which have far reaching social cost benefits.
Replying to a motion on the concluding day of budget session of the State Assembly, Lapang enumerated the benefits which have already been derived by the State after setting up of the EPIP at Byrnihat. The Meghalaya State Electricity Board (MeSEB) has been able to generate more revenue as a most of the units located in the EPIP are power-intensive. He informed that several units are utilising local raw materials like quartz which in turn has generated a lot of indirect employment to the local unemployed youths. Social benefits have also been generated to the locals in the form of establishment of shops, PCOs, restaurants, pharmaceutical shops, saloons, schools. The locals have also benefited in the field of transport sector with the setting up of the Industrial Park, he added.
The industrial units in the EPIP are producing torsteel, calcium carbide, copper section, sponge iron, oleoresin, wax products, packaging and polythene items, GI pipes, allumimum furniture, poly yarn, railway tracks and wagon components, water tanks, industrial oxygen tank, TMT bars and coil, granite slabs and tiles, industrial oils and grease and lubricants. There is also a liquor bottling plant in the EPIP. ?Out of a total employment of 776 in the 25 established units in the EPIP, there are 445 local employees,? the Chief Minister informed. The EPIP is a Centrally sponsored scheme which envisages development of an area by providing all infrastructure required by industrial units having export potential. The EPIP at Byrnihat was sanctioned in 1997-98. The implementation of the project was entrusted to the MeSEB which completed it in March 2001.
The Park has a total area of 259 acres, out of which 74.70 acres were developed with a budgeted amount of Rs 14 crore. The Central share is Rs 10 crore while the State contribution amounted to Rs 4 crore. The management of the Park rests with the Meghalaya Industrial Development Corporation (MIDC). Under the scheme, industrial units committing to export a miniumum of 33 per cent of their finished products were permitted to set up units in the EPIP. This was later reduced to 25 per cent of the finished products, for industrially backward states like Meghalaya.
Till date, infrastructure provided in the EPIP are roads, water supply, power, drainage, guest house, residential quarters, office buildings and common facility buildings for banks and post offices. The units at EPIP and other declared industrial areas have been given certain specific exemptions with regard to payment of Central Excise duties, income tax, comprehensive insurance, etc, which have been the policy of the Government of India to attract investment proposals to the industrially backward states.
Similarly, under the states package scheme of incentives certain fiscal incentives are available, such as exemption of sales tax and central sales tax (CST). These incentives are meant to attract investments so that with the growth of industries in the state, benefits would accrue to the state, which have a far reaching social cost benefits.