The UPA government had withdrawn certain exemptions for the new industrial units that had been awarded to them by the NDA in 2003. They were taken back on March 31 2010 which is 3 year short of the 10 year duration period as promised by the NDA government.

Now, it is time for some good news as the UPA has again decided to restore these excise duty exemptions partially. These exemptions were majorly for the regions of Himachal Pradesh and Uttarakhand.

There were protests from the Himachal Pradesh industrialists, after which the government made a proposal to them. The centre said that the units that have come into production before March 31 2010 will be getting full exemption on excise duty only if they agree for expansion of capacity or setting up of plant and machinery.

The government will also consider extending their benefits for a further 10 years' time if they meet these conditions. Central Board of Excise and Customs (CBEC) had given this recommendation on which the centre had come to this conclusion in favor of the economy as well as the industrial units.