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Government of India
Ministry of Commerce & Industry
18-July-2014 16:24 IST
Concession/ Financial Assistance to Promote Industrialization

 

 

 

                       The Government is providing different packages of concessions/financial assistance to the States of NER, Himachal Pradesh, Jammu & Kashmir and Uttarakhand, details of which is at ANNEXURE-I.

 

Details of financial assistance provided since inception of these schemes is at ANNEXURE-II.

 

Introduction of these packages has led to growth of industries in these States. Details of success achieved in terms of investment made, units set up and employment generated is at ANNEXURE-III.

 

                        The packages for Special Category States of Jammu & Kashmir, Himachal Pradesh and Uttarakhand have already been extended. Special Package for Jammu & Kashmir has been extended for a further period of five years w.e.f. 15.06.2012 to 14.06.2017 and Special Package for Himachal Pradesh and Uttarakhand from 7.1.2013 to 31.3.2017.

 

                        Details of the units set up, along with investment made and employment generated since the extension of the packages, as reported by the State Governments is at ANNEXURE-III.

 

ANNEXURE-I

 

ANNEXURE REFERRED TO IN REPLY TO THE LOK SABHA UNSTARRED QUESTION NO. 1402 FOR ANSWER ON 18.07.2014.

 

A.     PACKAGE OF CONCESSIONS/FINANCIAL ASSISTANCE PROVIDED TO THE STATES OF NER UNDER NEIIPP, 2007:

 

The Government has announced a package of fiscal incentives and concessions namely North-East Industrial Investment Promotion Policy (NEIIPP), 2007 w.e.f. 01.04.2007 for a period of 10 years. Benefits available under this package are:-

 

(i) Capital Investment Subsidy @ 30% of the value of plant and machinery.

 

(ii) Interest Subsidy @ 3% on working capital loan taken by an industrial unit for a period of   10(ten) years from the date of commencement of commercial production.

 

       (iii) Insurance Subsidy for 100% reimbursement of insurance premium paid by an industrial unit.

 

OTHER INCENTIVES/ CONCESSIONS  :-

·  Excise duty exemption based on “Value addition” norms specified by the Department of Revenue;

·  100% Income Tax exemption.

 

 

 

 

 

 

 

 

B.     SPECIAL PACKAGE FOR HIMACHAL PRADESH AND UTTARAKHAND:

 

A special package of incentives/concessions for industrial development in the States of Himachal Pradesh and Uttarakhand was introduced by the Government on 07.01.2003 for a period of ten years. This package expired on 06.01.2013 and has been further extended from 7.1.2013 to 31.3.2017. The extended package includes Central Capital Investment Subsidy @ 15% of the investment in plant and machinery with maximum limit of Rs.30 lakh for new units established or on substantial expansion for existing unit in notified area and for thrust industries anywhere in the State. For MSMEs 15% of investment in plant & machinery with maximum upper limit of Rs.50 lakh for same area.

 

C.     SPECIAL PACKAGE FOR JAMMU & KASHMIR:

 

A special package of incentives/concessions for industrial development in the State of Jammu & Kashmir was introduced by the Government on 14.06.2002 for a period of ten years. This package of incentives expired on 14.06.2012 and has been further extended for a further period of five years w.e.f., 15.06.2012 to 14.06.2017 with certain modification in the package, as follows: 

 

(i)              Capital Investment Subsidy @  15% of the investment of plant & machinery, subject to a ceiling of Rs. 30  lakhs. Micro, Small and Medium enterprises would be eligible for Capital Investment Subsidy of 30% of the investment of plant & machinery, subject to ceiling of Rs. 3.00 crore and Rs. 1.50 crore for manufacturing and service sector respectively;

(ii)           Interest Subsidy of 3% on the average of daily working capital loan for a period of five years from the date of commencement of commercial production; and

(iii)        Insurance Subsidy to the extent of 100% of the premium paid for a period of five years from the date of commencement of commercial production.

 

D.    BENEFITS AVAILABLE UNDER TRANSPORT SUBSIDY SCHEME (TSS), 1971 / FREIGHT SUBSIDY SCHEME (FSS), 2013:

 

In addition, the Government had also announced Transport Subsidy Scheme (TSS), 1971 which in addition to the eight States of NER also covers the States of Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Darjeeling District of West-Bengal, Andaman & Nicobar Administration & Lakshadweep Administration, under which cost of transportation of raw material/ finished goods ranging from 75% to 90% to and from the location of the industrial unit to the designated rail-head is reimbursed for a period of 5 years from the date of commencement of commercial production.  The Scheme has since been modified & notified as Freight Subsidy Scheme (FSS), 2013 w.e.f. 22.01.2013. 

 

  

ANNEXURE REFERRED TO IN REPLY TO THE LOK SABHA UNSTARRED QUESTION NO. 1402 FOR ANSWER ON 18.07.2014.

 

 

            DETAILS OF FINANCIAL ASSISTANCE PROVIDED (STATE-WISE) UNDER VARIOUS PACKAGES (SINCE INCEPTION AND TILL THE FINANCIAL YEAR  2013-14):

 

 

 

 

 

 

 

 

 

 

 

A.                 Under North East Industrial Investment Promotion Policy (NEIIPP), 2007:

                                                                                    

                                                                                      ANNEXURE-II

                                                                                                           (Rs. in crores)

STATE

FINANACIAL ASSISTANCE PROVIDED

Arunachal Pradesh

15.45

Assam

252.07

Manipur

0.12

Meghalaya

172.64

Mizoram

48.10

Nagaland

0.07

Sikkim

19.16

Tripura

6.82

 

B.                 Under Special Package Schemes:

 

 (Rs. in crores)

State

TOTAL

Jammu & Kashmir

188.86

Himachal Pradesh

260.00

Uttarakhand

204.78

 

 

C.                 Under Transport Subsidy Scheme (TSS), 1971:

 

                                                                                                                        (Rs. in crores)

Sl. No.

Name of State/UT

Total

 

1.

Himachal Pradesh

372.96

2.

J&K

64.55

3.

Uttarakhand

20.33

4.

Arunachal Pradesh

242.03

5.

Assam

1084.95

6.

Manipur

24.61

7.

Meghalaya

847.60

8.

Mizoram

50.41

9.

Nagaland

93.73

10.

Tripura

14.98

11.

Sikkim

17.37

12.

A&N Islands

25.20

13.

West Bengal (Darjeeling District)

1.88

 

D.                Under Freight Subsidy Scheme (FSS), 2013:     NIL.

 

 

 

 

 

 

 

 

 

 

 

 

ANNEXURE REFERRED TO IN REPLY TO THE LOK SABHA UNSTARRED QUESTION NO. 1402 FOR ANSWER ON 18.07.2014.

 

 

DETAILS OF SUCCESS ACHIEVED IN TERMS OF INVESTMENT MADE, UNITS SET UP AND EMPLOYMENT GENERATED 

 

  1.  In the States of North-East Region:

                                                                                                                             ANNEXURE-III 

 

S.No.

Name of State(s)

Investment Made

(Rs.  in crores)

Number of units established

Employment Generated

(no. of persons)

 

1.

Arunachal Pradesh

3286.97

142

3734

2.

Assam

1987.75

10385

77970

3.

Manipur

72.42

765

8178

4.

Meghalaya

3527.30

60

2906

5.

Mizoram

260.62

1747

14531

6.

Nagaland

274.00

6110

24440

7.

Sikkim

1257.37

30

6789

8.

Tripura

449.09

119

21270

 

TOTAL

11179.02

20543

15982726

 

 

  1.  In the Special Category States:

 

 

Sl.

No

Name of the State(s)

Investment Made

 

(Rs. in crore)

No. of Industrial Units set up

Employment generated

(no. of persons)

1.

Jammu & Kashmir

31769.74

14653

118291

2.

Himachal Pradesh

14613.11

9773

122075

3.

Uttarakhand

24460.20

31276

337620

 

 

 

The information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.

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