‘Centre’s sops to blame for UP industry drain’

Uttar Pradesh Chief Minister Mulayam Singh Yadav has fired a missive to Prime Minister Manmohan Singh, complaining against ‘‘prefe...

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Uttar Pradesh Chief Minister Mulayam Singh Yadav has fired a missive to Prime Minister Manmohan Singh, complaining against ‘‘preferential’’ treatment given to Uttaranchal, leading to the ‘‘flight’’ of industries from the state.

The CM said the Centre had extended several incentives to industries in Uttaranchal while showing a step-motherly attitude towards UP. The letter (No P/41/CM-1/2004) came on August 3, saying there is a ‘‘direct correlation’’ between incentives given to Uttaranchal under the special economic package and industries leaving the state. UP should be given similar facilities to ‘‘prevent home industries from shifting base to the hill state’’.

The package for Uttaranchal includes eight to 24 per cent rebate for 10 years in central excise tax, full income tax rebate for the first five years and thereafter 30 per cent rebate for the next five years and 15 per cent subsidy in investment and transport subsidy.

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Mulayam alleged no new unit had come to UP in a year due to the disparity and the new units are moving to the hill state due to the comparable infrastructure.

The Uttaranchal package was implemented by the NDA government but Mulayam has a larger gameplan.

On August 3, when Mulayam wrote to the PM, his government brought a resolution in the Vidhan Sabha, demanding the return of Hardwar and Udham Singh Nagar to UP. The resolution was passed unanimously.

The Chief Minister’s complaint comes ahead of Manmohan Singh’s awaited reply to the resolution.