Lok Sabha Question No. 1548 (UNSTARRED), answered on 2019-11-27
Subject: Industrial Development in Border Areas
Ministry: COMMERCE AND INDUSTRY
Asked by: Kanakmal Katara

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 1548. TO BE ANSWERED ON WEDNESDAY, THE 27 TH  NOVEMBER, 2019.

## INDUSTRIAL DEVELOPMENT IN BORDER AREAS

## 1548.  SHRI KANAKMAL KATARA:

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

वाणिज्य

## एवं उद्योग मंत्री

- (a) whether the border areas of the country are still industrially backward despite possessing rich natural resources;
- (b) if so, the State/UT-wise details thereof including Rajasthan and the reaction of the Government thereto;
- (c) whether  the  Government  proposes  to  boost  industrial  development  in  the border areas;
- (d) if so, the State/UT-wise details of the funds sanctioned and the targets fixed in this regard; and
- (e) the  details  of  the  other  steps  taken  by  the  Government  to  boost  industrial development in the border areas of the country?

## ANSWER

## वाणिज ् य एवं उद्योग मंत्री ( श्री पीयूष गोयल ) THE MINISTER OF COMMERCE & INDUSTRY (SHRI  PIYUSH GOYAL)

- (a) to (e): Department for  Promotion of  Industry  and  Internal  Trade  has  been implementing  following  schemes  for  industrial  development  in  the border  areas  being  Hill  states,  in  the  Union  Territory  of  Jammu  & Kashmir and Union Territory of Ladakh, Himachal Pradesh, Uttarakhand  and  North  Eastern  States  including  Sikkim.    No  such scheme is implemented in other border states i.e. Rajasthan, Punjab and Gujarat.
- 1)  The  Industrial  Development  Scheme  for  Union  Territory  of Jammu & Kashmir and Union Territory of Ladakh, 2017:
-  The  Scheme  for  Union  Territory  of  Jammu  &  Kashmir  and Union  Territory  of  Ladakh  covers  manufacturing  &  services

sector  and  provides  (i)  Central  Capital  Investment  Incentive (30%  of  the  investment  in  plant  &  machinery  with  an  upper limit of Rs. 5 crore),   (ii) Central Interest Incentive (3% interest on working capital for 5 years) and (iii) Central Comprehensive Insurance Incentive (Reimbursement of  100% insurance premium  for  5  years),    (iv)  Income  Tax  Reimbursement  of centre's share for 5 years, (v) GST reimbursement of Central Govt.  share  of  CGST  &  IGST  for  5  years,  (vi)  Employment Incentive  under  which  additional  3.67%  of  the  employer's contribution to EPF  in addition to Govt. bearing  8.33% Employee Pension Scheme (EPS) contribution of the employer in Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)  and  (vii)  Transport  incentive  on  finished  goods movement  by  Railways(20%  cost  of  the  transportation),  by Inland Waterways Authority (20% of the cost of transportation) &  by  air  (33%  of  cost  transportation  of  air  freight)  from  the station/port/airport  nearest  to  unit  to  the  station/port/airport nearest to the destination point.

-  A single unit can avail overall benefits upto Rs. 200 Crore.
-  The  Scheme  is  effective  from  15.06.2017  to  31.03.2020. Extension  of  scheme  beyond  31.03.2020  will  be  considered after evaluation of the scheme.
-  A  total  of  Rs.  430.01    crore  has  been  disbursed  to  the erstwhile State of Jammu & Kashmir under the earlier Special Package Schemes.

## 2)  The  Industrial  Development  Scheme  for  Himachal  Pradesh and Uttarakhand, 2017:

-  The scheme for Himachal Pradesh & Uttarakhand also covers manufacturing  &  services  sector  and  provides  (i)  Central Capital Investment Incentive (30% of the investment in plant & machinery  with  an  upper  limit    of  Rs.  5  crore)    (ii)  Central Comprehensive Insurance Incentive (Reimbursement of 100% insurance premium for 5 years).
-  The scheme is in force from 01.04.2017 to 31.03.2022.
-  A total of Rs. Rs. 371.67 crore for Himachal Pradesh and Rs. 350.42 crore for Uttarakhand has been disbursed under earlier Special Package Schemes.
- 3)  Scheme  of  Budgetary  Support  under  Goods  and  Services Tax (GST) Regime to the units located in Union Territory of Jammu & Kashmir, Union Territory of Ladakh Uttarakhand,

## Himachal Pradesh and North Eastern States including Sikkim, 2017:-

-  Under the Scheme, reimbursement of the Goods and Service Tax is provided to the extent of Central Government's share of CGST and IGST retained after devolution to the states.
-  The  Scheme  was  notified  on  05.10.2017.  The  Scheme  is valid  from  01.07.2017  to  30.06.2027.  An  outlay  sanction  of Rs. 27,413 Cr. is estimated for the Scheme.
-  The state-wise status of budget disbursement since inception of the Scheme is as under:-

Rs. in Crores

| S.No   | State                            | F.Y. 2019-20     | F.Y. 2018-19 Amount disbursed   | F.Y. 2017- 18 Amount   |
|--------|----------------------------------|------------------|---------------------------------|------------------------|
| S.No   | State                            | Amount disbursed |                                 | disbursed              |
| 1      | Uttarakhand                      | 854.63           | 721.30                          | 0.00                   |
| 2      | Himachal Pradesh                 | 204.78           | 271.80                          | 71.45                  |
| 3      | UT of Jammu & Kashmir and Ladakh | 173.16           | 148.90                          | 0.00                   |
| 4      | Assam                            | 160.72           | 200.39                          | 5.33                   |
| 5      | Sikkim                           | 222.79           | 121.00                          | 58.52                  |
| 6      | Meghalaya                        | 72.30            | 32.98                           | 34.11                  |
| 7      | Arunachal Pradesh                | 3.80             | 0.00                            | 0.00                   |
| 8      | Tripura                          | 0.40             | 0.56                            | 0.00                   |
| 9      | Nagaland                         | 0.80             | 2.89                            | 0.00                   |
| 10     | Mizoram                          | 0.20             | 0.04                            | 0.00                   |
| 11     | Manipur                          | 0.00             | 0.00                            | 0.00                   |
| Total  | Total                            | 1693.58          | 1499.86                         | 169.41                 |

## 4)  North East Industrial Development Scheme (NEIDS), 2017

-  To  promote  industrialization in NE  States and  to boost employment and income generation, a  new  Scheme  namely North  East  Industrial  Development  Scheme  (NEIDS),  2017 has  been  notified  on  12.04.2018  which  has  come  into  force w.e.f.  01.04.2017 for a  period  of  five  years.  (After  closure  of NEIIPP, 2007 on 31.03.2017).
-  The  North  East  Industrial  Development  Scheme    (NEIDS), 2017    for  North  Eastern  States  including  Sikkim  provides  (i) Central Capital  Investment Incentive (30% of the investment

in plant & machinery with an upper limit of Rs.5.00 crore), (ii) Central Interest Incentive  (3% interest on working capital for 5 years), (iii) Central Comprehensive Insurance incentive (Reimbursement of 100% insurance premium for 5 years), (iv) Income Tax Reimbursement of Centre's  share for 5 years , (v) GST reimbursement of Central Share of CGST & IGST for 5 years, (vi) Employment  Incentive under which additional 3.67%  of  the  employer's  contribution  to  EPF  in  addition  to Government bearing 8.33% Employee Pension Scheme (EPS) contribution  of  the  employer  in  PMPRY  and  (vii)  Transport Incentive on finished goods movement by Railways (20% cost of transportation), by Inland Waterways Authority (20% of the cost of transportation) & by air (33% of cost of transportation by air freight) form the station / port / airport nearest to unit to the station / port / airport nearest to the destination point.

-  Also, under this Scheme a single unit can avail overall benefits up to Rs.200.00 crore.
-  Under  the  erstwhile  scheme  for  North  Eastern  States,  North East  Industrial  and  Investment  Promotion  Policy  (NEIIPP), 2007 which came into operation w.e.f. 01.04.2007 and  was in operation  upto  31.03.2017,  a  total  of  Rs.2664.66  crore  has been  disbursed  to  the  North  Eastern  States  of  India  for  its Development.

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

-  In  order  to  facilitate  the  process  of  industrialization  in  hilly, remote  and  inaccessible  areas,  in terms  of subsidizing industrial units for transportation of their finished product and raw material Transport Subsidy Scheme was introduced on 27.07.1971.
-  Freight  Subsidy  Scheme  replaced  the  erstwhile  Transport Subsidy Scheme, 1971 on 22.01.2013.  The incentives under the  scheme  are  available  for  all  8  States  of  North  East, Himachal  Pradesh,  Uttarakhand,  J&K,  Darjeeling  District  of West Bengal, Andaman  & Nicobar Administration and Lakshadweep Administration.
-  The tenure of Freight Subsidy Scheme (FSS), 2013 was from 22.01.2013 to 22.11.2016. However, industrial units registered  under  the  scheme  prior  to  the  date  of  issue  of DIPP's  notification  dated  22.11.2016  are  eligible  for  the
- benefits of the scheme for committed number of years postcommencement of commercial production up to 21.11.2021.
-  Under  TSS,  1971/FSS,  2013,  since  inception,  Rs.  5288.95 crore have been released to the States of  NER  and Himalayan States which includes Rs.4698.57crore in respect of NER States and Rs.590.38 crore in respect of Himalayan States.

## 6)  Modified Industrial Infrastructure Upgradation Scheme (MIIUS)

-  DPIIT  is  implementing  this  Scheme  to  upgrade  common industrial infrastructure in existing Industrial Parks/ Estates/ Areas  in the country including green  field projects in backward areas including NER. Projects are being implemented by the State Implementing Agency (SIA) of the State Government.
-  Under this scheme, 20 projects are under implementation/completed in various States including projects in Himachal Pradesh, Jammu & Kashmir, Mizoram, and Tripura.  Further,  the  scheme  has  not  been  continued beyond 31.03.2017 for taking up new projects.
-  Out  of 20  projects, there are 2  projects  in  Himachal Pradesh, 1 in  UT of  Jammu & Kashmir, 1 in Punjab, 1 in Mizoram and 2 in Tripura

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