Lok Sabha Question No. 2553 (UNSTARRED), answered on 2019-12-04
Subject: Industrially Backward Districts
Ministry: COMMERCE AND INDUSTRY
Asked by: Devji Mansingram Patel

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

## LOK SABHA

UNSTARRED QUESTION NO. 2553.

TO BE ANSWERED ON WEDNESDAY, THE 04 TH  DECEMBER, 2019.

## INDUSTRIALLY BACKWARD DISTRICTS

## 2553.  SHRI DEVJI M. PATEL:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) the  State/UT-wise  details  of  industrially  backward  districts  in  the  country including the State of Rajasthan;
- (b) whether the Government has formulated/proposes to formulate any scheme for the development of industrially backward districts;
- (c) if so, the details thereof; and
- (d) if not, the reasons therefor?

## ANSWER वाणिज ् य एवं उद्योग मंत्री श्री पीयूष गोयल

## ( ) THE MINISTER OF COMMERCE & INDUSTRY (SHRI  PIYUSH GOYAL)

Yes, Sir. Department for Promotion of Industry and Internal Trade has been implementing schemes for providing incentives to industries in the Union  Territory  of  Jammu  &  Kashmir  and  Union  Territory  of  Ladakh, Himachal  Pradesh,  Uttarakhand  and  North  Eastern  States  including Sikkim.    Further,  the  State  of  Rajasthan  has  also  been  implementing Rajasthan  Investment  Promotion  Scheme,  2014.  The  details  of  the mentioned schemes are as under:

- 1) The Industrial Development Scheme for Union Territory of Jammu & Kashmir and Union Territory of Ladakh, 2017:
2.  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
3. (a) to (d):

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 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. 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.
-  A  total  of  Rs.  3362.85  crore    has  been  disbursement  since inception of the Scheme.

## 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 post-commencement 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) Rajasthan Investment Promotion Scheme, 2014:

The Finance Department in the State Government of Rajasthan, with a view to curbing regional imbalances and for overall development and promotion  of  investment,  has  notified  backward  and  most  backward areas in the State for the purpose of Rajasthan Investment Promotion Scheme, 2014. Vide Order No. F 12(28) FD/Tax/2010-Pt.I-116 dated 08.10.2014,  State  Government  has    notified revenue  districts of Barmer,  Dholpur,  Jaisalmer  and  Karauli  as  backward  area  for  the purpose of the Rajasthan Investment Promotion Scheme, 2014.

Further  vide  order  No.  F.  12(11)  FD/Tax/2016-246  dated  08.03.2016, the State Government notified the revenue districts of Baran, Jhalawar, Banswara,  Dungarpur  and  Tribal  Sub-Plan  Area  of  Revenue  District Udaipur,  Sirohi  and  Pratapgarh  including  municipal  areas  thereof,  as specified  by  Scheduled  Areas  (State  of  Rajasthan)  order  1981  dated 12.02.1981 as most backward area for the purpose of  the Rajasthan Investment Promotion Scheme, 2014.

Details  of  benefits  under  Rajasthan  Investment  Promotion  Scheme, 2014 to  enterprises  in  backward  and  most  backward  areas  are    at Annexure I.

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  THE  LOK SABHA UNSTARRED QUESTION NO. 2553 FOR ANSWER ON 04.12.2019.

## BENEFITS TO ENTERPRISES IN BACKWARD AND MOST BACKWARD AREAS UNDER RAJASTHAN INVESTMENT PROMOTION SCHEME, 2014

1. An eligible enterprise, other than a cement manufacturing enterprise, making investment in a backward area or a most backward area shall be granted the same benefits as would have been applicable if the enterprise was located elsewhere in the state but the period of benefit, except for interest subsidy, shall be extended to ten years.

Provided  that  the  State  Government  may,  on  the  recommendation  of  the  State Empowered  Committee  (SEC),  grant  to  a  manufacturing  enterprise,  other  than  a cement manufacturing enterprise and a service enterprise making an investment in a backward  area,  such  benefits  as  mentioned  below,  which  are  applicable  for investments  in  most  backward  areas,  with  a  view  to  attract  investment  in  the backward area.

2. An eligible enterprise. other than a cement manufacturing enterprise, making investment in a backward area shall be granted the following additional benefits in addition to the benefits given above:
- i. Additional Investment subsidy to the extent of 15% of State tax due and deposited for a period of seven years
- ii. 50% exemption from payment of Electricity Duty for ten years;
- iii. 50% exemption from payment of conversion charges payable on change of land use; and
- iv. 0.5% special interest subsidy, if enterprise is eligible for interest subsidy under the scheme.
3. An eligible enterprise. other than a cement manufacturing enterprise, making investment in a most backward area shall be granted the following additional benefits in addition to the benefits under para 1 above:
- i. Additional Investment subsidy to the extent of 35% of State tax due and deposited for a period of seven years.;
- ii. 50% exemption from payment of Electricity Duty for ten years; and
- iii. 50% exemption from payment of conversion charges payable on change of land use; and
- iv. 1 % special interest subsidy, if enterprise is eligible for interest subsidy under the scheme.
- v. Infrastructure support for development of infrastructure related to construction of Road. Supply or Water and Electricity up to the premises of new industrial unit, subject to a maximum limit of Rs. five crore, if the investment is more than rupees seven hundred fifty crore.

Provided such infrastructure support shall be allowed, if the investment is more than Rs. Fifty crore, for setting up of first enterprise in each of the following sectors, -

- (i)   Agro-Processing and Agri-Marketing sector; or
- (ii)  Bio-Technology Sector; or
- (iii) IT Sector.: and

vi.secured loan @ 5% per annum upto seven years, if the investment is more than two hundred fifty crores rupees for the enterprise(s) not availing interest subsidy.

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