New Delhi, Mar 22 (KNN) The Union Cabinet chaired by the Prime Minister Narendra Modi approved the North East Industrial Development Scheme (NEIDS), 2017 with financial outlay of Rs.3000 crores upto March, 2020 with a focus on the Micro, Small and Medium Enterprises (MSMEs) sector.

Talking to KNN, R.S Joshi, Chairman of Federation of Industry & Commerce of North Eastern Region (FINER) said that the initial assessment of the framework looks positive and the industries in the northeast have been waiting for the policy since long.

He however maintained that an in-depth analysis of the scheme will help understand the possible potentials of the new framework.

In order to promote employment in the North East States, Government is incentivizing primarily the MSME Sector through this scheme. Government is also providing specific incentive through the scheme to generate employment, an official release informed.

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. The overall cap for benefits under all components of incentives will be of Rs. 200 crores per unit, the release added.

Under the Scheme incentives shall be provided to new industrial units set up in the North Eastern States including Sikkim

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.

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/ Financial 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, also incentive is being on the air route.  

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 MantriRojgarProtsahanYojana (PMRPY).

(With PIB Inputs) (KNN/DA)