Arunachal Pradesh Chief Minister Pema Khandu on Thursday thanked Prime Minister Narendra Modi for the union cabinet’s approval of the North East Industrial Development Scheme (NEIDS), 2017 with financial outlay of Rs 3000 crores upto March, 2020.
NEIDS was approved on Wednesday and is aimed at encouraging micro, small and medium enterprises and will help generate employment in the north-eastern states, Khandu said in a statement here.
Lauding the approval of the NEIDS as “visionary”, the Chief Minister said the scheme will boost industrialization, income generation and growth of jobs in the north east and address regional growth imbalances.
NEIDS will provide reimbursements up to the extent of central government share of CGST and IGST for five years from the date of commencement of commercial production by the unit, he said adding the industrial units set up in the region will get a host of tax breaks and incentives from the government capped at Rs 200 crore per unit.
This apart reimbursement of centre’s share of income tax for first five years, including the year of commencement of commercial production by the unit is also provided under the scheme, Khandu said.
Under the scheme’s Central Comprehensive Insurance Incentive, reimbursement of 100 per cent will be provided on premium for insurance of building and plant and machinery for five years from the date of commencement of commercial production by a unit.
Under the transport incentives, the government will provide 20 per cent of the cost of transportation including the subsidy currently provided by the Railways/ Railway PSU for movement of finished goods by rail, he said.
NEIDS also includes an incentive of 20 per cent of transportation cost for finished goods, for movement through inland waterways.
Further 33 per cent of transportation cost of air freight on perishable goods (as defined by IATA) from the nearest airport to the place of production to any airport within the country will also be provided, he said.
The government will pay 3.67 per cent of the employers’ contribution to the Employees Provident Fund (EPF) in addition to the government bearing 8.33 per cent Employee Pension Scheme (EPS) contribution of the employer in the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).
Entrepreneurs will also get Central Capital Investment Incentive for Access to Credit (CCIIAC), which will be 30 per cent of the investment in plant and machinery with an upper limit of Rs 5 crore on the incentive amount per unit.