NEW DELHI: The Union Cabinet on Friday extended the Non Lapsable Central Pool of Resources (NLCPR) scheme till 2020 and introduced the North East Special Infrastructure Development Scheme (NESIDS), besides providing investment subsidy to four major industrial units in the region.
The move comes a day before Prime Minister Narendra Modi visits two poll-bound northeastern states — Meghalaya and Mizoram.
The Cabinet chaired by Modi approved the continuation of the existing NLCPR with funding pattern of 90:10 till March 2020 with an outlay of Rs 5,300 crore, the Union Minister for Electronics, IT and Law Ravi Shankar Prasad said.
Briefing news persons on the Cabinet decision, he said that it would enable completion of the ongoing projects.
“The Cabinet also approved the introduction of NESIDS, the new central sector scheme, from 2017-18 with hundred percent funding from the Centre to fill up the gaps in creation of infrastructure in specified sectors till March 2020,” Prasad said.
The new scheme will broadly cover creation of physical infrastructure relating to water supply, power, connectivity and specially the projects promoting tourism. This will also help infrastructure of social sectors of education and health.
The assets to be created under NESIDS will not only strengthen healthcare and education in the region but also encourage tourism and provide employment opportunities to local youth, the Minister said. The scheme will act as a catalyst in overall development of the region in the years to come.
The Cabinet also approved Capital Investment Subsidy amounting to Rs 264.67 crore to four industrial units located in the North East, including Sikkim, under Central Capital Investment Subsidy Scheme (CCISS), 2007 of North East Industrial Investment and Promotion Policy (NEIIPP), 2007. It also revised financial powers for approval of capital investment subsidy claims up to Rs 500 crore which will now be approved by the Minister of Commerce and Industry to facilitate expeditious settlement of claims, he added.
The grant of subsidy to industrial units will not only provide incentives to the operational units but also boost confidence of existing investors as well as potential investors in the North East, Prasad said. The Centre has been implementing this scheme to promote industrialization in the landlocked region.
