India’s special incentives for new Industrial units in Northeast

NEW DELHI: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 here today 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.nnInteracting with a series of Industry and trade delegations from the Northeast, Dr Singh said, the Cabinet decision is yet another reiteration of the high priority accorded by the Union Government and Prime Minister of India Narendra Modi himself, to promote entrepreneurship and job opportunities in the Northeast.nnElaborating 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% 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.nnIn addition, he said, Central Interest Incentive (CII) will be available to the tune of 3% on working capital credit advanced by eligible Banks/Financial Institutions for first 5 years from the commencement of commercial production by the Unit.nnAmong the other incentives available as per this scheme, Dr Singh referred to Central Comprehensive Insurance Incentive (CCII) which will provide for reimbursement of 100% insurance premium on insurance of building and Industrial plant & machinery for 5 years from the date of commencement and commercial production by the Unit.nnThe 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.nnBesides this, he said there will also be incentive on transportation to the tune of 20% 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% incentive for finished goods and for transportation by Air freight on perishable goods, it will be 30% of the cost of transportation from the airport nearest to the place of production to any airport within the country, he added.nnMeanwhile, the Gossaigaon Bazar Samiti delegation, led by Kokrajhar Member of Parliament/ Lok Sabha, 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.