Opportunity for Thai airlines in India's northeast

http://www.bangkokpost.com/070407_Business/07Apr2007_focus06.php

ASIA FOCUSTax-free incentives to be offered to SMEs
Umesh Pandey

A senior Indian cabinet minister visited Bangkok recently to publicise a set of economic incentives aimed at boosting Thai investment in India's impoverished northeast.
Mani Shankar Aiyar, who is in charge of development for India's northeastern states, said that the unprecedented package would be revealed in full at the end of the month.
India's Northeast comprises eight states with a population of about 38 million. Although one of India's poorest areas, the northeast is rich in natural resources including oil, gas and coal. It is also plagued by violence, with numerous insurgency groups operating in the area.
The minister urged Thai companies to invest in infrastructure, adding that over the next five years, the Indian government will invest about $12 billion to develop roads in India's northeast.
Mr Aiyar said that the government would forge joint ventures with companies interested in developing the region.
"I first came to Bangkok in 1968, and Bangkok now is far different from the Bangkok then. I want to see Thai people perform the same miracle in these states as they have done to this country and the market will yield the reward for their efforts," he said.He also urged Thai companies to invest in tourism in India's Northeast, saying that government efforts to improve roads and airstrips were an opportunity for Thai tour operators and airlines. The incentives are set to be approved later this month.
The incentives would be in place until 2027, and are aimed at new investors, or companies that expand existing operations in the Northeast. Among the features are exemptions from excise and income tax and access to state subsidies.
"All of this is going to make the region virtually a tax-free zone for investments, but companies eligible for most of the subsidies have to be small and medium-sized industries," he said.
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