North-East Industrial and Investment Promotion Policy

Nirmala Sitharaman
Nirmala Sitharaman

To promote industrialization in the States of North Eastern Region leading to overall growth of the region, the Government announced a package of fiscal incentives, namely the North East Industrial and Investment Promotion Policy (NEIIPP), 2007, w.e.f. 01.04.2007 for a period of 10 years, salient features of which are grant of (i) Central Capital Investment Subsidy @ 30% of investment in Plant and Machinery, (ii) Central Interest Subsidy @ 3% of working capital loan availed for a period of 10 years from the date of commencement of commercial production (DOCP), (iii) reimbursement of insurance premium paid towards insurance of fixed capital assets for a period of 10 years from DOCP, (iv) Excise Duty exemptions for a period of 10 years from DOCP and (v) Income Tax exemption for a period of 10 years from DOCP.

Units have been set up both in the Manufacturing Sector and Services Sector, covering various fields such as Pharmaceuticals, Steel and Rolling Mill, Cement, FMCG, Packaging, Poultry Feed, Ferro-alloy, Bakery, Hotels, Hospitals, Power Generation, etc.

Fresh registration of industrial units for claiming benefits of the schemes under NEIIPP, 2007 has been suspended w.e.f. 01.12.2014, since committed liabilities under the Package are far greater than Annual budget allocation. However, the scheme has neither been cancelled nor withdrawn. There is no proposal for discontinuing the scheme at present. A number of initiatives have been taken in the recent past for smooth implementation of the scheme.

To give a further boost to internal trade, the Government has been implementing the scheme, namely, Assistance to States for Developing Export Infrastructure (ASIDE), under which special emphasis is given to development of infrastructure in the NER States. This Scheme has been devolved to States in the current financial year. Apart from this, an Export Development Fund (EDF) has also been set up with the objective of promoting exports from the region. Efforts have also been initiated to mainstream the States, including NE States, for boosting exports.

This 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.

IndianBureaucracy.com wishes the very best.

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