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
North East Industrial Development Scheme (NEIDS), 2017
- NEIDS has been launched to catalyse the industrial development in the North Eastern Region.
- It has come into force from 01.04.2017 and will remain in force up to 31.03.2022.
- It covers eligible industrial units in the manufacturing and service sectors Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim.
- 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).
- The Scheme does not envisage sanction of projects; rather, eligible units are registered after following due process.