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Rs 3k-cr industrialisation scheme for NE fails to find takers

This was pointed out by Union minister of state for commerce and industry CR Chaudhary in a written reply in the ongoing winter session of Lok Sabha

Guwahati: North East Industrial Development Scheme (NEIDS), a Rs 3,000-crore project meant to promote industrialisation and boost employment in the north-eastern states, seems to have failed to catch the imagination of the new units in manufacturing and services sectors of the region. This was pointed out by Union minister of state for commerce and industry CR Chaudhary in his written reply in the ongoing winter session of Lok Sabha.

"The total approved outlay of NEIDS is Rs 3,000 crore. No claims have been raised under the scheme so far and as such, there is no release and utilisation of funds under the scheme," the minister said.

Launched on April 1, 2017, the scheme would remain in force up to March 31, 2022. It covers eligible industrial units in the manufacturing and service sectors of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim, under which a single unit can avail overall benefits up to Rs 200 crore.

The scheme provides-

· Central Capital Investment Incentive (30% of the investment in plant & machinery with an upper limit of Rs. 5 crore)

· Central Interest Incentive (3% interest on working capital for 5 years)

· Central Comprehensive Insurance Incentive (Reimbursement of 100% insurance premium for 5 years)

· Income Tax Reimbursement of centre’s share for 5 years

· GST reimbursement of Central Govt. share of CGST & IGST for 5 years

· Employment Incentive under which additional 3.67% of the employer’s contribution to EPF in addition to Govt. bearing 8.33% Employee Pension Scheme (EPS) contribution of the employer in PMRPY

· Transport incentive on finished goods movement by Railways (20% cost of the transportation), by Inland Waterways Authority (20% of the cost of transportation) & by air (33% of cost transportation of air freight) from the station/port/airport nearest to unit to the station/port/airport nearest to the destination point.