NEW DELHI: The Government would come out with a new industrial policy for the northeastern States in March, Minister of Development of the North Eastern Region (DoNER) Mani Shankar Aiyar said here on Monday.

The North-Eastern Industrial Policy, giving certain incentives to the States in the region, came into force in 1997 for a period of 10 years. However, it lost its sheen as similar incentives were extended to Uttarakhand, Himachal Pradesh and Jammu and Kashmir.

Mr. Aiyar said the new industrial policy for the NE States was in an "advanced stage" of being finalised after several rounds of consultations with the stakeholders and MPs from these States.

In a bid to boost economic activities in the region, the Government proposes to encourage small hydro power (SHP) projects through subsidies and involving private sector participation.

"There is a need for a clear, coherent and consistent policy in respect of the power sector in the region, especially as power constitutes the most important resource of the region and holds the highest potential to propel the region to the front rank of development in the country," Mr. Aiyar said.

The Minister, who chaired the first sectoral summit of the North Eastern Council (NEC) which reviewed power projects in the region, said the existing structure of SHP was proving inadequate for accelerated implementation in the NER.

Though as many as 492 SHP projects have been identified in Arunachal Pradesh, only 64 have been implemented, 48 were under construction and the remaining were still far from being implementable, he said.

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