The experience of the North East Industry Policy of 1997, which offered tax holidays to industries investing there, offers enough lessons. The region continues to be dominated by small and medium units and there has been only an exodus of excise-intensive units to more developed states like Assam and Meghalaya, which attracted the major share of investments. Studies have shown the region would gain more if investments were made in infrastructure. And even the limited gains made are now threatened by extension of the tax holidays to Himachal Pradesh and Uttaranchal, which has led to migration of companies from neighboring states and even from the south. Perhaps the PM could himself implement these insights and set an example for the states to follow. Estimates put the Centres foregone revenues from tax concessions at Rs 1,58,661 crore, of which around a third were corporate income tax concessions to provide incentives for investment in infrastructure and backward areas. The states could quantify the impact of the concessions they offer and have a schedule to reduce the incentives to the minimum.