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 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.
The information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman