CM says schemes to boost industrialization, income generation
NEW DELHI/ITANAGAR, Mar 22: The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the North East Industrial Development Scheme (NEIDS), 2017 with financial outlay of Rs 3000 crores up to March, 2020.
The government will provide necessary allocations for remaining period of scheme 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.
Chief Minister Pema Khandu on Thursday hailed Prime Minister Modi for approving the scheme and termed the step as visionary.
He said the schemes will boost industrialization, income generation and growth of jobs in the North East.
The chief minister said the industrial units set up in the region will get a host of tax breaks and incentives from the government, capped at Rs 200 crore per unit.
Aimed at encouraging micro, small and medium enterprises (MSMEs), the new scheme will help generate employment in the north-eastern states.
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 also be provided.
Under the Central Comprehensive Insurance Incentive (CCII), 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 will be provided.
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. It also includes an incentive of 20 per cent of transportation cost for finished goods, for movement through inland waterways.
Further, 33 per cent of transportation cost of air freight on perishable goods (as defined by the IATA) from the nearest airport to the place of production to any airport within the country will also be provided.
The government will 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).
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.
A Central Interest Incentive (CII) has also been provided which will be three 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.
The Union Cabinet has approved the Integrated Scheme for Development of Silk Industry for the next three years from 2017-18 to 2019-20.
The core objective of the scheme is to improve the productivity and quality of silk through research and development intervention.
A total allocation of Rs 2161.68 crore has been approved for the implementation of the scheme for three years from 2017-18 to 2019-20. The scheme will be implemented by the Ministry through the Central Silk Board (CSB).
The scheme is expected to increase the silk production from the level of 30348 MTs during2016-17 to 38500 MTs by the end of 2019-20 through various interventions, such as production of import substitute bivoltine silk to the tune of 8500 MTs per annum by 2020, research and development to improve productivity from the present level of 100 kg to 111 kg of silk per ha of plantation by the end of 2019-20.
It will promote women empowerment and livelihood opportunities to SC/ST and other weaker sections of the society. The scheme will help to increase productive employment from 85 lakh to 1 crore persons by 2020.