ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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THE NORTH-Subsidising to Bankruptcy

August 29, 1981 BOTH Punjab and Haryana have suddenly realised the urgent need for industrialisation. Early last month, the Haryana government announced the resurrection' of its moribund 'industrial assistance group' scheme which promises much milk and honey (through 'one window') to those desirous or investing in industrial ventures' In the state. Early" this month the Chief Minister of Haryana hied himself off to the fleshpots of Europe and America ostensibly to won Indian emigres into investing their nest eggs in industrial ventures back home in Haryana (the number of Haryanvi emigres is minuscule). Not to be outdone, the Punjab government opened an 'Udyog Sahayak' with much Fanfare Inwards the middle of August. This loo, promised great quantities of milk and honey to potential industrial investors. Haryana has labelled its venture into the realms of manufacture the 'aiye jee policy. Punjab is still groping around for a suitably catchy label. Now tiny Himachal Pradesh has also joined the three ring circus.


TABLE A larly some workers might have left and may not be interested in pursuing their claims. Also, it is not beyond the realm of possibility that even current assets would bo understated if it is known that the merger was to take place, especially where there is a managment linkage, between the absorbing company and the merged company. This would imply that while the tax rebate should be calculated on a notional value on the basis of losses which represent the extra liabilities over the assets, in actual practice the excess of liability over assets may be very small and may be even negative.
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