GUWAHATI: The Centre has announced North East Industrial Development Scheme (NEIDS) 2017 for the eight north-eastern states to facilitate industrial investment in the region. The new policy has been granted for the region in place of the now-withdrawn North East Industrial Investment Policy 2007.
Assam industries and commerce minister, Chandra Mohan Patowary informed that the new scheme would come into force with retrospective effect from April 1, 2017 and hoped that it would be a boon for medium and small enterprises sector in Assam.
The new schemes provides for sops like exemption and subsidies for an investor to the maximum of Rs 200 crore per news industrial unit.
The industrial units have to be registered in the region during April 1, 2017 to March 31, 2020 to become eligible to avail benefits under NEIDS . Units registered in this period mentioned will be entitled to draw the benefits under the scheme for a period of 5 years.
The central government has earmarked Rs 3000 crore for the scheme period. Incentives granted NEIDS include reimbursement of 58% income tax and 58% CGST and IGST.
Besides it has provision for transport subsidy, central capital investment incentive for access to credit, central interest incentives, central comprehensive insurance incentives and employment incentive.
Transport Subsidy is provided in the policy at 20% of the cost of transportation including the subsidy currently provided by Railways / Railway PSU for movement of finished goods by rail. Transport subsidy of 20% of cost of transportation for finished goods provided for movement through Inland Waterways Authority of India while 33 % of cost of transportation is provided for air freight on perishable goods (as defined by IATA) from the airport nearest to place of production to any airport within the country.
The policy also has provision for Central Capital Investment Incentive for Access to Credit (CCIIAC) at 30 % of the investment in Plant & Machinery with an upper limit of Rs. 5 crores on the incentive amount per unit.
Central Interest Incentive (CII) at 3 % on working capital credit advanced by eligible Banks/ Financial institutions will be provided for the first 5 years from the date of commencement of commercial production by the unit.
As per Central Comprehensive Insurance Incentive (CCII) mentioned in the policy reimbursement of 100% insurance premium on insurance of building and plant & machinery will be provided for 5 years from the date of commencement of commercial production by the unit.
Regarding Employment Incentive (EI) the Government shall pay 3.67% of the employer’s contribution to the Employees Provident Fund (EPF) in addition to Government bearing 8.33% Employee Pension Scheme (EPS) contribution of the employer in the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).