Lok Sabha Question No. 4701 (UNSTARRED), answered on 2023-03-29
Subject: Setting up of Industries in Andaman and Nicobar Islands
Ministry: COMMERCE AND INDUSTRY
Asked by: Kuldeep Rai Sharma

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

## LOK SABHA

UNSTARRED QUESTION NO. 4701.

TO BE ANSWERED ON WEDNESDAY, THE 29 TH  MARCH, 2023.

## SETTING UP OF INDUSTRIES IN ANDAMAN AND NICOBAR ISLANDS

## 4701.  SHRI KULDEEP RAI SHARMA:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) whether the Union Government encourages State Governments for setting up of industries through various policy measures and if so, the details thereof;
- (b) whether  the  Union  Government  has  received  proposals  from  Andaman  and Nicobar Islands for setting up of industries and if so, the details and the status thereof during each of the last three years and the current year;
- (c) the action taken by the Union Government on such proposals; and
- (d) the  other  steps  taken  by  the  Union  Government  to  set  up  more  industries  in
- Andaman and Nicobar Islands?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) to (d): Setting up of industries is a State subject. However, Government of India through the Department for Promotion of Industry & Internal Trade (DPIIT) and  other  Central  Ministries/  Departments,  provides  an  enabling  ecosystem  for  the  overall  industrial  development  of  the  country,  including Andaman and Nicobar Islands through many policy interventions.

No  centralised  information  with  respect  to  proposal  from Andaman  and Nicobar Islands for setting up industries is available. However, information collated from ministries under the Central Government, of the efforts made country for promoting and strengthening industries in the including Andaman and Nicobar Islands is given below:

Under Startup India initiative of DPIIT, it is an endeavor to provide capital at various stages of business cycle of a startup. The Government of India is implementing Fund of Funds for Startups (FFS) and Startup India Seed Fund Scheme (SISFS) . Both the Schemes are implemented on a Pan-India basis. The Startup India Seed Fund Scheme (SISFS) has been approved for the period of 4 years starting from 2021-22 with a corpus of Rs. 945 crore. The Scheme aims to provide financial assistance to Startups for proof of  concept,  prototype  development,  product  trials,  market  entry  and commercialization. The Scheme is implemented from 1st April 2021. Yearwise startups recognised by DPIIT for Andaman and Nicobar Islands as on 28th February, 2023 is given below:

| State/UT                    |   2020 |   2021 |   2022 |   2023 |
|-----------------------------|--------|--------|--------|--------|
| Andaman and Nicobar Islands |      5 |     13 |      9 |      4 |

One District One Product (ODOP) Scheme: The Central Government has initiated  the  One-District-One-Product  (ODOP)  in  different  States/UTs. ODOP is seen as a transformational step towards realizing the true potential of a district, fueling its economic growth, generating employment and rural entrepreneurship. Products from Andaman and Nicobar Islands included under ODOP along with District Details are mentioned below:

|   S. No. | District Name            | Product                          |
|----------|--------------------------|----------------------------------|
|        1 | Nicobar                  | Coconut & Coconut based products |
|        2 | North and Middle Andaman | Fishries/Marine products         |
|        3 | South Andaman            | Marine Products                  |

DPIIT, in consultation with the State Governments, started a comprehensive  reform  exercise  in  States  and  UTs  in December  2014. Under the Business Reform Action Plan (BRAP) ,  all  States/UTs in the country  are  ranked  on  the  basis  of  reforms  undertaken  by  them  on designated  parameters.  BRAP  covers  reform  areas  such  as  Information Wizard,  Single  Window  Systems,  Online  Building  Permission  System, Inspection Reforms, Labour Reforms, etc.

Till date five editions of BRAP (2015, 2016, 2017-18, 2019 and 2020) have been  completed  and  States/UTs  have  been  assessed  accordingly.  The Action  Plan  for  BRAP,  2022  (i.e.,  the  sixth  edition)  was  shared  with States/UTs for its implementation and is currently under progress. Over the past few years, UT Administration of Andaman & Nicobar has taken multiple initiatives to facilitate Ease of Doing Business in the UT:

-      Online systems with Information wizard and dashboards have been implemented  to aid businesses in obtaining information, approvals and clearances online in the UT
-      Online  system for  e-payment of  bills,  display  information  on  tariffs, notify customers on planned outages

Government of India intends to promote Trade, Business and Industries in Andaman  &  Nicobar  Islands  through  its  exercise  of  BRAP  2022  and enhance its overall development.

Initiatives  have  also  been  taken  by  the  Government  of  India  to  facilitate multi-modal connectivity by providing integrated and seamless connectivity for movement of people, goods and services from one mode of transport to another. PM  Gati  Shakti is  a  National  Master  Plan  for  multi-modal connectivity.  Gati  Shakti  -  a  digital  platform  -  brings  16  Ministries including  Railways  and  Roadways  together  for  integrated  planning  and coordinated implementation of infrastructure connectivity projects.

Government of  India  has  also  undertaken  integration  of  industrial  parks across  the  country  onto  the India  Industrial  Land  Bank  (IILB) ,  a  GIS enabled platform, which will allow showcasing of respective industrial parks to investors on one common platform. Details of the Industrial Parks located in Andaman and Nicobar Islands which have been integrated onto IILB are given below:

|   S.No. | District               | Park Name                                     |
|---------|------------------------|-----------------------------------------------|
|       1 | South Andaman          | Industrial Estate Dolly Gunj                  |
|       2 | North & Middle Andaman | Industrial Estate Bakultala                   |
|       3 | Nicobars               | Industrial Estate Campbell Bay Joginder Nagar |
|       4 | South Andaman          | Industrial Estate Garacharma                  |
|       5 | South Andaman          | Industrial Estate Hut Bay                     |
|       6 | South Andaman          | Industrial Estate Mithakhari                  |

Lakshadweep and Andaman & Nicobar Islands Industrial Development Scheme (LANDIS), 2018 was notified by Department for Promotion of Industry and Internal Trade. As per Allocation of Business Rules,  with  implementation  of  the  scheme  and  budget  for  the  scheme being administered by Ministry of Home Affairs. Benefits under the Scheme are as under:

-  Central Capital Investment for Access to Credit (CCIIAC)
-  Central Interest Incentive (CII)
-  Central Comprehensive Insurance Incentive (CCII)
-  Good and Service Tax (GST) Reimbursement
-  Income Tax (IT) Reimbursement
-  Transport Incentive (TI), and
-  Employment Incentive (EI)

The said  scheme  has  been  extended from time  to  time  till  31.03.2023. However, till date no unit had qualified for registration under the scheme.

Ministry  of  MSME,  through  Khadi  and  Village  Industries  Commission (KVIC),  is  implementing Prime  Minister's  Employment  Generation Programme (PMEGP) for assisting entrepreneurs in setting up of new units in  the  non-farm  sector  across the  country  including  Andaman  &  Nicobar Islands.  It  aims  to  generate  employment  opportunities  for  traditional artisans/ rural and urban unemployed youth at their doorstep.

Under PMEGP, General Category beneficiaries can avail of Margin Money (MM) subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to Special Categories such as Scheduled  Castes,  Scheduled  Tribes,  OBCs,  Minorities , Women,  Exservicemen, Physically Handicapped, Transgenders, beneficiaries belonging to Northeastern Region, Hill and Border areas, and Aspirational Districts, the Margin Money subsidy is 35% in rural areas and 25% in urban area. The maximum cost of project is Rs. 50 lakhs in the manufacturing sector and Rs. 20 lakhs in the service sector.

Since 2018-19, 2 nd  financial assistance of up to Rs. 1 cr. for upgradation and  expansion  of  well-performing  existing  PMEGP/REGP/MUDRA  units have been introduced with subsidy of 15% (20% for NER and hilly areas).

Details  on  Units  assisted,  Margin  Money  (MM)  subsidy  disbursed  and Estimated employment generated in Andaman and Nicobar Islands during last 3 years and current year under PMEGP are given below:

| Year                       |   MMSubsidy Disbursed (Rs. in Lakhs) |   Units Assisted |   Estimated Employment Generated |
|----------------------------|--------------------------------------|------------------|----------------------------------|
| 2019-20                    |                               146.16 |               93 |                              744 |
| 2020-21                    |                               186.12 |              155 |                             1240 |
| 2021-22                    |                               238.69 |              162 |                             1296 |
| 2022-23 (as on 28.03.2023) |                               167.25 |               94 |                              752 |

Ministry of Food Processing Industries is implementing a centrally sponsored "PM  Formalisation  of  Micro  food  processing  Enterprises  (PMFME) Scheme" for providing financial, technical and business support for upgradation  of  micro  food  processing  enterprises  in  the  country  including Andaman and Nicobar Islands with the support of States/ UTs Government through identified State Nodal Agency.

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