GUWAHATI: Even as Andhra Pradesh continues to press for special category status, the Centre has cleared a Rs 3000-crore special scheme to incentivize the MSME sector and generate employment opportunities in the northeastern states.
The Centre took the decision to sanction the special bundle on Wednesday.
"MSMEs comprise the biggest chunk of industrialization in the northeast and so the focus of this scheme is on this sector. This sector is also the biggest creator of employment," Assam trade and industry minister Chandra Mohan Patowary mentioned on Thursday. He added that this is the one special coverage in force in the nation.
The scheme, referred to as the North-East Industrial Development Scheme' (NEIDS) - 2017, is a successor to the Northeast Industrial Investment Promotion Policy (NEIPP) which the NDA executive had suspended in 2014. It didn't renew it for just about 365 days after its expiry last March.
The scheme has utterly completed away with delivery subsidy by way of highway in each non-public and public sectors, which was the primary loophole in the previous policies resulting in leakage of finances.
Patowary mentioned, "The new policy has plugged all loopholes. It does not provide any subsidy on road transport subsidy. Instead, subsidy is being given to transportation of finished products by railways (20%), waterways (20%) and perishable goods by air (33%) within the boundaries of the country."
Under this scheme, an investor can avail benefits up to Rs 200 crore in the case of exemption and subsidies consistent with unit and any unit which is registered between April 1, 2017 and March 31, 2020 will be eligible to avail these benefits for a period of 5 years. "We cannot give incentives indefinitely. One has to stand on its own feet," added Patowary.
The incentives presented come with repayment of 58% of income tax and 58% of CGST and IGST from the date of commencement of manufacturing. Also on be offering is subsidy of 30 % of the funding in plant and machinery with an upper restrict of Rs five crore consistent with unit. There can also be three % incentive on working capital credit complicated by way of eligible banks and monetary establishments for the primary 5 years from the date of commencement of business manufacturing by way of the unit. Besides, ther will be repayment of 100% insurance top rate on insurance of building, plant and machinery for 5 years from the date of commencement of business manufacturing by way of the unit.
"For encouraging employment generation, this scheme provides employment incentive under which 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 Mantri Rojgar Protsahan Yojana (PMRPY)," mentioned Patowary.
The Centre took the decision to sanction the special bundle on Wednesday.
"MSMEs comprise the biggest chunk of industrialization in the northeast and so the focus of this scheme is on this sector. This sector is also the biggest creator of employment," Assam trade and industry minister Chandra Mohan Patowary mentioned on Thursday. He added that this is the one special coverage in force in the nation.
The scheme, referred to as the North-East Industrial Development Scheme' (NEIDS) - 2017, is a successor to the Northeast Industrial Investment Promotion Policy (NEIPP) which the NDA executive had suspended in 2014. It didn't renew it for just about 365 days after its expiry last March.
The scheme has utterly completed away with delivery subsidy by way of highway in each non-public and public sectors, which was the primary loophole in the previous policies resulting in leakage of finances.
Patowary mentioned, "The new policy has plugged all loopholes. It does not provide any subsidy on road transport subsidy. Instead, subsidy is being given to transportation of finished products by railways (20%), waterways (20%) and perishable goods by air (33%) within the boundaries of the country."
Under this scheme, an investor can avail benefits up to Rs 200 crore in the case of exemption and subsidies consistent with unit and any unit which is registered between April 1, 2017 and March 31, 2020 will be eligible to avail these benefits for a period of 5 years. "We cannot give incentives indefinitely. One has to stand on its own feet," added Patowary.
The incentives presented come with repayment of 58% of income tax and 58% of CGST and IGST from the date of commencement of manufacturing. Also on be offering is subsidy of 30 % of the funding in plant and machinery with an upper restrict of Rs five crore consistent with unit. There can also be three % incentive on working capital credit complicated by way of eligible banks and monetary establishments for the primary 5 years from the date of commencement of business manufacturing by way of the unit. Besides, ther will be repayment of 100% insurance top rate on insurance of building, plant and machinery for 5 years from the date of commencement of business manufacturing by way of the unit.
"For encouraging employment generation, this scheme provides employment incentive under which 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 Mantri Rojgar Protsahan Yojana (PMRPY)," mentioned Patowary.
Centre approves Rs 3000-crore special scheme for Northeast states
![Centre approves Rs 3000-crore special scheme for Northeast states]()
Reviewed by Kailash
on
March 23, 2018
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