Cabinet approves North-East Industrial Development Scheme 2017
The Union Cabinet has approved North East Industrial Development Scheme (NEIDS), 2017 to promote employment in North Eastern Region states including Sikkim.NEIDS is combination of the incentives covered under the earlier two government schemes with a much larger outlay. It will have financial outlay of Rs. 3000 crores upto March, 2020.
Purpose of NEIDS 2017
Promote industrialization: It will promote industrialization in North Eastern Region (NER) states including Sikkim and will boost income generation and employment.
Promote employment: For this, government is incentivizing primarily MSME Sector through this scheme. It is also providing specific incentive through scheme to generate employment.
Benefits to industrial units: It will provide various incentives and benefits to all eligible industrial units. The overall cap for benefits under all components of incentives will be of Rs. 200 crores per unit.
Incentives to be provided to new industrial units in NER
Central Capital Investment Incentive for Access to Credit (CCIIAC): Under it, 30% of investment in Plant and Machinery with upper limit of Rs.5 Crore will be provided per unit.
Central Interest Incentive (Cll): It will be 3% on working capital credit advanced by eligible Banks and Financial institutions for first 5 years from date of commencement of commercial production by unit.
Central Comprehensive Insurance Incentive (CCII): It will provide reimbursement of 100% insurance premium on insurance of building and Plant & Machinery for 5 years from date of commencement of commercial production by unit.
Goods and Service Tax (GST) Reimbursement: It will be up to extent of Central Government share of CGST and IGST for 5 years from date of commencement of commercial production by unit.
Income-Tax (IT) Reimbursement: It will be of Centre’s share of income tax for first 5 years including year of commencement of commercial production by unit.
Employment Incentive (EI): Government will pay 3.67% of employer’s contribution to Employees Provident Fund (EPF) in addition to its bearing 8.33% Employee Pension Scheme (EPS) contribution of employer in Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).
Transport Incentive (TI): Indian Railways will provide 20% of cost of transportation including subsidy currently provided for movement of finished goods by rail. Inland Waterways Authority of India (IWAI) will provide 20% of cost of transportation for finished goods for movement through inland waterways. Airport nearest to place of production will provide 33% of cost of transportation of air freight on perishable goods (defined by IATA) to any airport within country.
Categories: India Current Affairs 2018