[Assam] Peace in mind, foreign investors eye Assam

[Pradip Kumar Datta]

    Peace in mind, foreign investors eye Assam    By Syed Zarir Hussain, Guwahati, Aug 24: Dozens of prospective foreign investors are keen to set up businesses in India's northeastern state of Assam following peace moves and visible signs of an end to a long running rebellion. 

"We are getting queries and proposals from various investors, both domestic and foreign firms, ready to do business in power, hydrocarbon and food processing," said Industry, Commerce and Power Minister Pradyut Bordoloi. 

A Canadian and a British oil exploration companies are already working in Assam - both Canoro Resources Ltd and Premier Oil have struck crude oil and natural gas in the state.

"Both the companies have struck extremely high quality oil and gas," Bordoloi told IANS.

He said the Assam government would go all out to woo investors willing to do business in the state. 

"We are ready to walk the extra mile to facilitate someone willing to set up business here or forging partnerships with the government." 

The United Liberation Front of Asom (ULFA), one of the most powerful militant groups in the region, is in talks with the Indian government through emissaries. There is a possibility of the group giving up its separatist agenda.

As part of the government's business policy, two special economic zones would be set up with a view to promoting exports of items like handicrafts, ethnic garments and textiles, besides horticultural products. 

"A few firms from Singapore have shown interest in doing business in the food processing sector especially in items like orange, pineapple and ginger," Bordoloi said.

The minister added that several resourceful Indian investors were also making queries about setting up power plants in the state.

"There is tremendous potential in the power sector and talks are on with some firms although it is an infant stage." 

He said both foreign and domestic investors were keen to pump money for doing business in Assam after the state witnessed relative calm with prospects of peace dawning in the region. 

"The atmosphere of peace and the government's will to solve insurgency is encouraging investors to come to Assam for doing business and this is a healthy sign." 

The state is all set for a major leap with a whopping Rs.54 billion integrated petrochemical project expected to change the economic face of the region. 

The project, popularly referred to as the Assam Gas Cracker, is to be implemented by the Gas Authority of India Ltd (GAIL) with 70 percent equity participation in five years. The remaining 30 percent equity would be shared equally among Oil India Ltd (OIL), Numaligarh Refinery Ltd (NRL) and the Assam government. 

"The Gas Cracker project is expected to help an estimated 100,000 people get employment as a result of investments in downstream plastic processing industries and allied activities," the minister said. 

According to preliminary estimates, at least 500 plastic processing industries are likely to come up in the region when this project becomes operational. 

As part of the Assam government's aggressive policy to give a fillip to industrial activities, it has agreed to grant exemption from entry tax on capital goods for the Gas Cracker project, works contract tax during the construction period, sales tax and VAT on feedstock for 15 years from the date of commencement of production.                    --- IANS
 				
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