Lok Sabha Question No. 356 (STARRED), answered on 2017-03-27
Subject: Industrialisation of Backward States
Ministry: COMMERCE AND INDUSTRY
Asked by: B. S. YEDDYURAPPA, MOHAMMAD SALIM

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

STARRED QUESTION NO.356.

TO BE ANSWERED ON MONDAY, THE  27 TH  MARCH, 2017.

## INDUSTRIALISATION OF BACKWARD STATES

## *356.  SHRI B.S. YEDIYURAPPA: SHRI MOHD. SALIM:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज् यवव द्यग ं ्री

- (a) whether the Government has identified industrially backward States/ regions/districts in the country and if so, the details thereof;
- (b) whether the Government proposes to formulate any specific policy/scheme for these  States  to  create  a  favourable  investment  environment  and  if  so,  the details thereof, State/UT-wise including Karnataka;
- (c) whether the Government proposes to formulate any scheme for setting up of forest based industries in the country; and
- (d) if so, the details thereof, State/ UT-wise, including Karnataka?

## ANSWER

वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a) to (d): A Statement is laid on the Table of the House.

*****

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO  (d) OF LOK SABHA STRRED QUESTION NO. 356 FOR ANSWER ON 27.03.2017.

- (a) & (b): The primary responsibility of industrial development of backward areas rests with the State Governments. The Union Government supplements their efforts through various Schemes launched by it with a view to promote industrialization in industrially backward areas of the country.

Department of Industrial Policy & Promotion (DIPP) is implementing the following  Schemes  with  a  view  to  promote  industrial  development  of backward areas of the country:

-  North East Industrial and Investment Promotion Policy (NEIIPP 2007) was  notified  for  the  States  of  Arunachal  Pradesh,  Assam, Manipur,  Meghalaya,  Mizoram,  Nagaland,  Sikkim,  and  Tripura w.e.f. 01.04.2007. It has been extended till 31.03.2017 with certain modifications. Incentives provided under the Policy :-
-  Central Capital Investment Subsidy Scheme
-  Central Interest Subsidy Scheme
-  Comprehensive Insurance Scheme
-  Excise duty exemption on Value Addition basis and
-  100% Income Tax exemption

##  Special Package Scheme for Himachal Pradesh and Uttarakhand:

Government  of  India  had  announced  a  package  of  industrial incentives for promoting industrialization in the States of Himachal Pradesh and Uttarakhand on 07.01.2003, which was implemented initially  for  a  period  of  10  years  till  06.01.2013.  It  was  further extended  for  another  period  from  07.01.2013  to  31.03.2017  with certain modifications. Under the modified package, Capital Investment Subsidy is provided for all new units and to the existing units  on  substantial  expansion  @15%  of  investment  of  plant  & machinery subject to a ceiling of Rs. 50 lakh for MSME units and Rs. 30 lakh for others.

-  Special Package Scheme for Jammu & Kashmir (J&K)

For the State of Jammu & Kashmir, the modified Special Package Scheme  is  valid  upto  14.06.2017.  Under  this  Scheme  following financial assistance is provided:

-  Capital Investment subsidy for all new units and to the existing units on substantial expansion- for MSME @ 30% of investment in plant and  machinery  with  a  ceiling of Rs  3  crore for Manufacturing units and Rs1.5 crore for Service Units, whereas

for other units it is @ 15% of investment in plant and machinery with a ceiling of Rs 30 lakh.

-  Interest subsidy @ 3% on the average daily working capital loan for  a  period  of  five  years  from  the  date  of  commencement  of commercial production.
-  Insurance subsidy for all new units and to the existing units on substantial expansion to the extent of 100% for a period of five years from the date of commencement of commercial production.

##  Freight Subsidy Schemes (FSS), 2013 / Transport Subsidy Scheme (TSS), 1971

-  Transport Subsidy Scheme for the States of Himachal Pradesh, Uttarakhand, J&K, Darjeeling district of West Bengal, Andaman and Nicobar Islands, Lakshadweep Islands and 8 North Eastern StatesThis scheme has been discontinued w.e.f. 22.11.2016

Government  of  India  has  constituted  a  Committee  under  the Chairmanship of CEO, NITI Aayog consisting of Secretaries of Ministries/Departments of Development of North Eastern Region (DONER),  Skill  Development  and  Entrepreneurship,  MSME, Textiles, Commerce, Tourism, Health & Family Welfare, Expenditure,  Power  and  DIPP  to  examine  and  suggest  a roadmap  for  a  new  industrial  policy  for  North  Eastern  and Himalayan States.  The first Meeting of the Committee was held on 23.02.2017 in New Delhi to deliberate upon a new industrial policy and stakeholder consultations are being held.

- (c) & (d): The current Schemes for North Eastern States, Uttarakhand, Himachal Pradesh and Jammu & Kashmir include financial assistance to forest based  industries  also.    As  per  Ministry  of  Environment,  Forest  and Climate  Change,  there  is  no  proposal  to  formulate  any  Scheme  for setting up of forest based industries in the Country. However, as per the directions of Hon'ble Supreme Court dated 05.10.2015, the Ministry has  formulated  'The  Wood  Based  Industries  (Establishment  and Regulation)  Guidelines  2016'    and  the  same  has  been  published  in Gazette of India on 16.11.2016.

*****