[pib] North East Industrial Development Scheme

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Mains Paper 3: Economy | Issues relating to planning, mobilization of resources, growth, development and employment

From UPSC perspective, the following things are important:

Prelims level: NEID Scheme

Mains level: Development projects in the NE


News

North East Industrial Development Scheme (NEIDS), 2017

  1. NEIDS has been launched to catalyse the industrial development in the North Eastern Region.
  2. It has come into force from 01.04.2017 and will remain in force up to 31.03.2022.
  3. It covers eligible industrial units in the manufacturing and service sectors Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim.
  4. The scheme provides:
  • Central Capital Investment Incentive (30% of the investment in plant & machinery with an upper limit of Rs. 5 crore),
  • Central Interest Incentive (3% interest on working capital for 5 years),
  • Central Comprehensive Insurance Incentive (Reimbursement of 100% insurance premium for 5 years),
  • Income Tax Reimbursement of centre’s share for 5 years,
  • GST reimbursement of Central Govt. share of CGST & IGST for 5 years,
  • Employment Incentive under which additional 3.67% of the employer’s contribution to EPF in addition to Govt. bearing 8.33% Employee Pension Scheme (EPS) contribution of the employer in PMRPY and
  • Transport incentive on finished goods movement by Railways (20% cost of the transportation), by Inland Waterways Authority (20% of the cost of transportation) & by air (33% of cost transportation of air freight).
  1. The Scheme does not envisage sanction of projects; rather, eligible units are registered after following due process.
North-East India – Security and Developmental Issues
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