The Union Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space Dr Jitendra Singh said that the North East Industrial Development Scheme (NEIDS), approved by the Union Cabinet, will play a crucial role in promoting new industrial units in the region by providing several special incentives.
Interacting with a series of Industry and trade delegations from the Northeast, Dr Jitendra Singh said, the Cabinet decision is yet another reiteration of the high priority accorded by the Union Government and Prime Minister Shri Narendra Modi himself, to promote entrepreneurship and job opportunities in the Northeast.
Elaborating on the highlights of the newly announced North East Industrial Development Scheme, Dr Jitendra Singh said, to begin with, a financial outlay of Rs. 3,000 crore has been earmarked for it.
Under the scheme, a number of exclusive incentives will be available to new industrial units being set up in any of the eight states. An important provision provided in the scheme is the Central Capital Investment Incentive for Access to Credit (CCIIAC), as per which, 30 percent of the investment in the industrial plant and machinery with an upper limit of Rs. 5 crore will be provided as the incentive amount per unit. In addition, he said, Central Interest Incentive (CII) will be available to the tune of 3 percent on working capital credit advanced by eligible Banks/Financial Institutions for first 5 years from the commencement of commercial production by the Unit. Keen to push development and job creation without disturbing regional ecological balance, the government is formulating a new industrial policy for the North Eastern region, building incentives for select sectors.
Industries which are environmentally sustainable such as agro processing, horticulture, floriculture and plantation crops are likely to figure in the list of special sectors which will be the focus of the new policy.
We will provide subsidies to people who will set up units under these activities. Sectors which could harm the ecology of the region will be low priority in the scheme,” a senior government official said. The North East is a major priority of the Narendra Modi government. Projects of railway and road connectivity have been kicked off in states of the region to promote growth in the areas of tourism, revenue and trade. The Department of Industrial Policy and Promotion (DIPP) along with NITI Aayog is redrafting the policy — new North East Industrial and Investment Promotion Policy (NEIIPP).
The policy, launched in 2007, was suspended after a review in 2014. The new scheme would provide easier access to working capital loans and reimburse insurance premium among other incentives.
The new package has put an upper limit on the capital investment subsidy for the new units at Rs 5 crore per industrial unit in the manufacturing sector and Rs 3 crore in the services sector.
The government will provide the interest subsidy scheme on term loans of 5-10 years maturity taken to finance capital expenditure for setting up or expansion of industrial units. The interest subsidy will be limited to term loans of up to Rs 10 crore.
Among the other incentives available as per this scheme, Dr Jitendra Singh referred to Central Comprehensive Insurance Incentive (CCII) which will provide for reimbursement of 100 percent insurance premium on insurance of building and Industrial plant & machinery for 5 years from the date of commencement and commercial production by the Unit.
The North East Industrial Scheme approved by Union Capital also gives a relief on GST, disclosed Dr Jitendra Singh and said that a unique provision has been provided for reimbursement up to the extent of Central Government share of CGST and IGST for 5 years from the date of commencement of commercial production by the unit. Besides this, he said there will also be incentive on transportation to the tune of 20 percent of the cost of transportation including the subsidy currently provided by Railways/Railway PSUs for movement of goods by rail. On the Inland Waterways, there will be 20 percent incentive for finished goods and for transportation by Air freight on perishable goods, it will be 30 percent of the cost of transportation from the airport nearest to the place of production to any airport within the country.
Meanwhile, the Gossaigaon Bazar Samiti delegation, led by Kokrajhar Member of Parliament/ Lok Sabha, Shri N. Kumar Sarania, also presented a memorandum to DoNER Minister, requesting to take up with the Assam Government the issue of interim financial assistance for the owners of 160 shops, which are under construction at the Supermarket building at Gossaigaon Town in Kokrajhar.
