Thursday, 30 May 2024

The Government of India has approved a new industrial policy and other concessions for the North Eastern Region. It includes

  1. Development of Industrial Growth Centres with central assistance that has increased from Rs. 10 crores to Rs.15 crores.
  2. Funding of IID centres between Government of India and Small Industries Development Bank of India (SIDBI) has been increased from 2:3 to 4:1 and the Government of India funds would be grant.
  3. Transport Subsidy Scheme would continue upto 31/03/2007 till the end of 10th Plan in the existing terms and conditions.
  4. Growth Centre/Integrated Infrastructure Development Centre/Industrial Estates would be a Tax Free Zone from Income Tax & Excise for a period of 10 years from the date of commencement of production with provision to be made for exemption of local sales tax and municipal tax on the part of State Governments.
  5. 15% Capital Investment Subsidy is provided to industrial units located in growth centres subject to a ceiling of Rs. 30 lakhs.
  6. Special consideration for financing term and working capital loans by commercial banks and North East Development Financial Corporation.
  7. Grant of 8% interest subsidy on working capital loans for 10 years from commencement of production.
  8. Similar benefits are extended to new/expansion units in Growth Centre/Integrated Infrastructure Development Centre/Industrial Estate/Export Promotion Zone.
  9. Relaxation of PMRY norms namely, maximum age limit raised to 40 years. Family income limit raised to Rs. 40,000 per annum, no collateral upto projects of Rs. 1.00 lakh, subsidy ceiling raised to Rs. 15,000, coverage of areas of horticulture, piggery, fishing, small tea garden, project cost limit raised upto Rs. 2 lakhs other than business sectors for individuals and Rs. 5 lakhs for group financing, etc.
  10. NEDFI be granted Rs. 20 crores for funding by them for techno-economic studies for Industries & Infrastructure.
  11. Setting up of Debt Purchase Window by State Governments for purchase by NEDFI to reduce blocking of capital.
  12. Exploration and development of market for export to neighboring countries particularly Myanmar, Bhutan and Bangladesh.
  13. Assistance for restricting State PSUs from National Renewal Fund.
  14. The community pattern of land holding in large parts of NE region does not lend itself to providing collateral security as required under conventional bank lending. RBI has constituted a Committee to look into this issue. An appropriate system of "guarantees" will be evolved for NE region.
  15. NEDFI be designated as Nodal Agency for released of transport subsidy.
  16. Development of Village and Small Industries sectors, like strengthening of Weavers Service Centre and Indian Institute of Handloom Technology. Priority be given for setting up market complexes and exhibition facilities, design centre for handicraft, advance training programme through Master craftsmen, setting up of new emporia and renovation of existing emporia. All four silk varieties are covered under Mill Gate Price scheme. Central Silk Board to give priority in the implementation of programmes in the North-East.