Lok Sabha Question No. 1115 (UNSTARRED), answered on 2018-12-17
Subject: Industrially Backward States
Ministry: COMMERCE AND INDUSTRY
Asked by: VIJAY KUMAR HANSDAK, RAMA DEVI

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 1115.

TO BE ANSWERED ON MONDAY, THE 17 TH  DECEMBER, 2018.

## INDUSTRIALLY BACKWARD STATES

## 1115.  SHRI VIJAY KUMAR HANSDAK: SHRIMATI RAMA DEVI:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) whether  the  Government  has  undertaken  any  review  of  industrialization  in industrially backward States/regions in the country;
- (b) if so, the details and the outcome thereof along with the States where pace of Industrialization  was  found  to  be  slow,  and  those  where  it  was  fast  review during the last three years;
- (c) the reaction of the Government thereto; and
- (d) the  corrective  steps  taken/  proposed  to  be  taken  for  industrialization  of industrially backward States/regions in the country?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY

## वाणिज् य एवं उद्योग मंत्रालय में राज् यमंत्री (श्री सी.आर. चौधरी) (SHRI C.R. CHAUDHARY)

Department of Industrial Policy and Promotion has been implementing following  schemes  for  providing  incentives  to  industries  in  States  of Jammu & Kashmir, Himachal Pradesh, Uttarakhand and North Eastern

- (a) to (d): States including Sikkim.
- 1)    The  Scheme  for  Jammu  &  Kashmir  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).    The  scheme  is  in  force  from
- 15.06.2017 to 31.03.2022.
- 2)  The  scheme  for  Himachal  Pradesh  &  Uttarakhand  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.
- 3)  The scheme 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 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 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 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.

Also, under this scheme a single unit can avail overall benefits up to Rs. 200 Crore.

- 4)   Scheme of Budgetary Support to the eligible units located in  the states of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North  Eastern  States  including  Sikkim  under  Goods  and  Service Tax  Regime  extends  benefits  of  GST  reimbursement  of  central Govt. share of CGST&IGST to the industrial units for the residual period to them which were earlier availing excise exemption in the pre-GST  regime.    The  scheme  is  in  force  from  01.07.2017  till 30.06.2027.
- 5) In addition, DIPP is also implementing 'Modified Industrial Infrastructure Up-gradation Scheme (MIIUS)' to upgrade common industrial  infrastructure  in  Industrial  Parks/Estates/Areas  in  the country including green field projects in backward areas including NER. Under this scheme, 21 projects are under implementation/completed in various States including six  projects in  the  States  of  Himachal  Pradesh,  Jammu  &  Kashmir,  Mizoram and Tripura.

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