There is no proposal at present either to restore the provisions or to extend the coverage of NEIIP 2007, Union Minister of State for Finance, S S Palanimanickam said in a Rajya Sabha reply to a question by Biren Baishya.
The minister was responding to a question on amendments of the Policy by Department of Industrial Policy and Promotion that (DIPP) diluting the provisions relating to transport subsidy and Central Excise Duty. The minister said the rules were amended to prevent misuse.
Prior to April 2008, eligible units in North Eastern States and Jammu and Kashmir were entitled to refund of excise duty paid by them each month in cash. It excluded CENTVAT credit of duty paid on inputs.
This was modified to curb misuse by unscrupulous manufacturers. After the modifications, the refund is linked to the duty payable on value addition and not on the duty paid in cash, the minister said, admitting that some representations have been received seeking withdrawal of the modifications on the ground that it is impeding investments in the North-east.
A comprehensive review was undertaken only three years ago in 2007. As for restoring the earlier provisions of the Central Excise exemption, these were modified specifically to curb misuse, the minister argued.
As regards transport subsidy, no amendments have been made by the Government, the minister added.