Cabinet approves North East Industrial Development Scheme

The cabinet today approved the North East Industrial Development Scheme (NEIDS), 2017, with a financial outlay Rs 3,000 crore up to March 2020, a government statement said.

Under the scheme, the government will provide necessary allocations for its remaining period after assessment before March 2020.

"NEIDS is a combination of the incentives covered under the earlier two schemes with a much larger outlay," a statement said.

It said the scheme will provide incentives to micro, small and medium enterprises in the region along with special incentives to generate employment through the scheme.

"All eligible industrial units, which are getting benefits of one or more components of other schemes of the Government of India, will also be considered for benefits of other components of this scheme," it said.

The scheme will provide reimbursements of up to the extent of central government share of CGST and IGST for five years from the date of commencement of commercial production by the unit.

Besides, reimbursement of centre's share of income tax for first five years, including the year of commencement of commercial production by the unit, would be provided, the statement said.

Reimbursement of 100 per cent on premium for insurance of building and plant and machinery for five years from the date of commencement of commercial production by the unit is also there, it said.

Under the transport incentives, the government will provide 20 per cent of the cost of transportation including the subsidy currently provided by the Railways/ Railway PSU for movement of finished goods by rail.

An incentive of 20 per cent of transportation cost for finished goods, for movement through inland waterways, the statement said.

It said that 33 per cent of transportation cost of air freight on perishable goods (as defined by IATA) from the nearest airport to the place of production to any airport within the country will also be provided.

"The government shall pay 3.67 per cent of the employers' contribution to the Employees Provident Fund (EPF) in addition to the government bearing 8.33% Employee Pension Scheme (EPS) contribution of the employer in the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)," the statement said.

Entrepreneurs will also get Central Capital Investment Incentive for Access to Credit (CCIIAC), which will be 30 per cent of the investment in plant and machinery with an upper limit of Rs 5 crore on the incentive amount per unit, it said.

A central interest incentive (CII) has also been provided which will be 3 per cent on working capital credit advanced by eligible banks and financial institutions for first five years from the date of commencement of commercial production by the unit, it said.