Government issues notification for NE industrial Development Scheme

New Delhi, Apr 18 (KNN) After getting the Union Cabinet approval, the Government of India has formally notified the North East Industrial Development Scheme.

The scheme includes all the states of North East including Sikkim and will be effective from April 1, 2017 to March 31, 2022.

Before disbursing the benefits under the scheme, an empowered committee will examine all the claims made by the industrial units.

The notification stated that an empowered committee headed by the secretary of the Department of Industrial Policy and Promotion will be constituted.

The other members of the committee will include secretary of the Ministry of Development of North Eastern Region, representative of the NITI Aayog, secretaries of the concerned ministries and departments of the Government of India etc., for the selection of beneficiaries under the scheme.

While considering the proposals, the committee will deliberate upon factors like cost disadvantage, project viability, employment generation, promoters’ risk, etc., while preference will be given to the industrial units under the micro, small and medium enterprises.

The North East Industrial Development Finance Corporation Limited (NEDFi) will be the nodal agency for the disbursement of the benefits under the scheme.
The NEDFi will release the funds through e-transfer to designated bank accounts of the eligible industrial units.

Further, the NEDFi will also conduct post-audit of 10% of the claims that release every year and 20% of the claims will be post-audited by chief controller of accounts of the DIPP.

The claims under capital investment scheme and transport incentive received by the Department of Industrial Policy and Promotion (DIPP) will be pre-scrutinized by a recognized independent audit agency.
On the eligibility criteria, the notification said that all new industrial units other than those included in the negative list would be eligible for the benefits under the scheme.

Biotechnology and hydel power generation units up to 10 MW located in the North East states would be eligible for receiving the benefits under the scheme.

It further notified that the Rs 200 crore will be the maximum limit of benefits to be received by each unit and the incentives will be provided on reimbursement basis.

To become eligible for this scheme, all industrial units will have to register themselves with the DIPP through the online portal and have to submit applications with the detailed project reports.
The empowered committee will consider issues like prima facie eligibility of the industrial unit, availability of budget, etc., to decide the eligibility for registration.

The units will have to start production within 18 months of approval, while, the units, which started production on or after April 1, 2017 will be allowed to register with the DIPP on or before September 30, 2018.

The DIPP issued the gazette notification of the scheme on April 12. (With inputs from a media report) (KNN/YV)