'Enquiry ordered into violation of industrial policy'

Shillong: Meghalaya government has ordered an inquiry into the violation of the state industrial policy by some industrial units, Chief Minister Mukul Sangma told the state assembly on Friday.

"An inquiry committee has been constituted to look into the matter and actions will be taken against those found violating the guidelines," Sangma said during question hour.

"There were eight industrial units already indicted by the CAG for claiming subsidies from the government, but have not adhered to the state industrial policy.

"These units have also availed Rs 85.28 crore as part of the government policy to provide incentives to promote industrial investment in the state," he said.

The chief minister said the matter was brought to light by CAG report during the period ending March 31, 2010.

One of the guidelines violated was not following the provision of employing 60 per cent of total recruitment from local indigenous unemployed youths, he said.

The inquiry committee, to be headed by the commissioner and secretary of the commerce and industries department, would submit its report within 60 days, Sangma said.

The inquiry committee would also examine whether all industrial units in the state complied with the Investment and Industrial Policy of the state.

"If the enquiry committee finds that they did not comply with the terms and condition of the policy, we'll direct the units to refund the incentives availed by them," the chief minister told the house.

The state government was also in the process of preparing amendment to the Investment and Industrial Policy of the state to halt misuse of subsidies and resources, he said.