Lok Sabha Question No. 321 (UNSTARRED), answered on 2021-02-03
Subject: North East Industrial Development Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: Kripanath Mallah

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

## LOK SABHA

UNSTARRED QUESTION NO. 321. TO BE ANSWERED ON WEDNESDAY, THE 3RD FEBRUARY, 2021.

## NORTH EAST INDUSTRIAL DEVELOPMENT SCHEME

## 321. SHRI KRIPANATH MALLAH:

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

- (a) the salient features of the North East Industrial Development Scheme
- (b) the details of the funds sanctioned, allocated and utilized under this scheme in Assam during the last three years; and
- (c)       the details of the target set and achievements made so far by the Government   in this regard?

## ANSWER

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

## वाणिज् यवव द्योग म त्रालयमेंराज् यम त्रर(श्रर सोमप्रकाश) (SHRI SOM PARKASH)

- (a): The  salient  features  of  North  East  Industrial  Development  Scheme  (NEIDS)  which covers both manufacturing and service sector, leveraging information technology is as under:

|   1 | Central Capital Investment Incentive for access to credit(CCIIAC)   | 30% of the investment in Plant & Machinery with an upper limit of Rs.5 Cr.                                                                                                                                                                                                                                                                                         |
|-----|---------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   2 | Central Interest Incentive(CII)                                     | 3% on working capital credit advanced by Scheduled Banks or Central/State financial institutions for first 5 years from the date of commencement of commercial production/operation. The incentive will be so restricted as to ensure that subsidized interest rate is not below the Marginal Cost of funds based Lending Rates (MCLR) of the lending institution. |
|   3 | Central Comprehensive Insurance Incentive(CCII)                     | Reimbursement of 100% insurance premium on insurance of building and Plant & Machinery for 5 years from the date of commencement of commercial production.                                                                                                                                                                                                         |
|   4 | Income Tax(IT) Reimbursement                                        | Reimbursement of Centre's share of income tax for first 5 years including the year of commencement of commercial production.                                                                                                                                                                                                                                       |
|   5 | Goods and Services Tax(GST) Reimbursement                           | Reimbursement up to the extent of Central Govt. share of CGST and IGST for 5 Years.                                                                                                                                                                                                                                                                                |

|   6 | Employment Incentive(EI)   | Additional 3.67% of the employer's contribution to 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).                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   7 | Transport Incentive(TI)    |  20% of the cost of transportation including the incentive currently provided by Railways/ Railway PSU for movement of finished goods by rail from the railway station nearest to industrial unit to railway station nearest to the location of the buyer.  20% of cost of transportation for finished goods for movement through Inland Waterways Authority of India from the port nearest to the location of industrial unit to the port nearest to the location of the buyer  33% of cost of transportation of air freight on perishable goods (as defined by IATA) from the airport nearest to place of production to any airport within the country, nearest to the location of the buyer. |

The total benefits from all component of the scheme put together shall be limited to the total investment in plant and machinery subject to maximum limit of Rs. 200.00 crore per unit.

- (b)  &  (c): North  East  Industrial  Development  Scheme  (NEIDS),  2017  was  notified  on 12.04.2018 and came into force w.e.f. 01.04.2017 for a period of five years. For the period 2019-20, a token amount of Rs. 1.00 crore was allocated and the whole amount was utilized for the industrial units in the State of Assam. In FY 2020-21, the budgetary allocation of Rs. 100.00 crore was made at BE stage  under  NEIDS  2017.  At  present,  215  industrial  units  have  been recommended by State Nodal Officer of Government of Assam for registration under  NEIDS  2017,  out  of  which  177  units  have  already  been  granted registration by the Government of India. The proposed investment in the State of  Assam  by  these  215  units  under  the  Scheme  is  Rs.  1381.51  crore.  Till date, the State Level Committee of Government of Assam has recommended for the reimbursement of claims amounting to Rs. 36.03 crore in respect of 45 industrial  units  of  Assam  who have started their commercial production and filed  their  claims  under  NEIDS  2017.  Presently,  the  claims  are  under  prescrutiny by the independent audit agency.

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