‘Lack of peace discouraging private investments in NE’

SHILLONG, April 30 – Due to lack of peaceful business environment, the North-eastern States received a meagre 2.2 per cent of the total planned investments from the corporate sector in the country during the last fiscal.

The 2.2 per cent investment roughly translates into Rs 30,145 crore which the region received during 2008-09, according to a finding of an investment meter of the Associated Chambers of Commerce and Industry (ASSOCHAM).

Out of the 2.2 per cent investments, Assam and Arunachal Pradesh managed to attract the maximum amount of corporate investment, the finding said.

The report added that Anil Dhirubhai Ambani Group plans to invest Rs 30,000 crore in a green energy project to produce 5,000 megawatts of hydroelectricity in Arunanchal Pradesh.

The other two investments were announced in Assam. Tata Teleservices plans to invest Rs 100 crore while Root Corporation has an investment plan of Rs 45 crore in Assam.

Though the North-east is bestowed with immense natural resources and has an English-speaking population, it is the lack of peaceful business environment which is inhibiting private investments in the region, maintained DS Rawat, secretary general, ASSOCHAM.

Emphasising that the North-east has immense potential to attract investments in the hospitality, tourism, IT, power, food processing and horticulture sectors, Rawat rued that the law and order situation has created barriers for entry of the private sector in the region.

ASSOCHAM has identified the eastern region as its thrust area for seeking government and industry’s interests. It has requested the Government at the Centre and in the States to complement its incentive packages with peace exercises in the region.

Meanwhile, ASSOCHAM has decided to open offices in the North-east and adopt it as a “focus region” for the next five years. ASSOCHAM will be working towards attracting investments, necessary for development, both from the public and private sector.

Source: http://www.assamtribune.com