Union Cabinet approves North East Industrial Development Scheme of Rs 3000 Crore

The Union cabinet on Wednesday approved North East Industrial Development Scheme (NEIDS), a newly introduced scheme which shall promote industrialization of states of North Eastern Region including Sikkim which will boost employment and income generations from 1st April 2018 till 2020.

Fincial outlay of Rs 3,000 crore up to March 2020 to be provided. 

Central Government will provide necessary allocations for remaining period of scheme after assessment before March 2020, as reported.

The following benefits industries to get:

Central Capital Investment Incentive for Access to Credit (CCIIAC) - 30% of the investment in Plant & Machinery with an upper limit of Rs.5 Crore on the incentive amount per unit.

Central Interest Incentive (Cll) - 3% on working capital credit advanced by eligible Banks/ Fincial institutions for first 5 years from the date of commencement of commercial production by the unit.

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 by the unit.

Goods and Service Tax (GST) Reimbursement - Reimbursement up to the extent of Central Govt. share of CGST and IGST for 5 Years from the date of commencement of commercial production by the unit.

Income-Tax (IT) Reimbursement - Reimbursement of Centre's share of income tax for first 5 years including the year of commencement of commercial production by the unit.

Transport Incentive (TI) - 20% of the cost of transportation including the subsidy   currently   provided    by   Railways/ Railway PSU for movement of finished goods by rail.

20% of cost of transportation for finished goods,  for  movement    through     Inland Water ways Authority of India.

Employment Incentive (EI) - The Government shall pay 3.67% of the employer’s contribution to the Employees Provident Fund (EPF) in addition to Government bearing 8.33% Employee Pension Scheme (EPS) contribution of the employer in the Pradhan MantriRojgarProtsahanYoja (PMRPY).