PMRY
Transport Subsidy Scheme
Capital Investment Subsidy Scheme
Centre's Capital Incentive Scheme
Tax Holiday Scheme
 
 
TRANSPORT SUBSIDY SCHEME

The Transport subsidy scheme was introduced in July, 1971 to promote industries in hilly, remote and inaccessible areas. The scheme is a applicable to the states of Himachal Pradesh, J & K, the North-Eastern States, Sikkim, Union Territories of Andaman & Nicobar Islands and Lakshadweep, Darjeeling District of West Bengal and eight hill districts of Utter Pradesh comprising Almora, Chomoly, Dehradun, Nainital, Pauri Garhwal, Pithoragarh, Tehri Garhwal and Uttar Kashi. Under the scheme, subsidy of 90% is admissible on transport costs incurred on movement of raw materials and finished goods from designated rail heads/parts up to the location of the industrial units and vice-versa in the region. The Scheme is operated through the State Governments. The North Eastern Development Financial Corporation [NEDFI] has been designated as a nodal agency to release subsidy to the eligible units on the basis of recommendations of the State Level Committee under the chairmanship of Commissioner & Secretary of Industries, Govt. of Assam. SISI is one of the members of State Level Committee. Interested Small Scale entrepreneurs may apply to the concerned DICC for claiming of Transport subsidy.

HIGHLIGHTS OF NEW INDUSTRIAL POLICY FOR NE REGION
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CAPITAL INVESTMENT SUBSIDY SCHEME

Capital Investment Subsidy Scheme 1997 has been introduced and notified on 1.6.1998 under the Prime Minister's new initiative for the North Eastern Region. Under the Scheme subsidy @15%of the investment in plant & machinery subject to a maximum ceiling of Rs. 10 lakhs is payable to industries located in the growth centres and to new industrial units and/or their substantial expansion in other identified areas in the North Eastern Reign. The Scheme is operated through the State Governments. The North Eastern Development Financial Corporation [NEDFIC] has been designated as a nodal agency to release subsidy to the eligible units on the basis of recommendations of the State Level Committee under the chairmanship of Commissioner & Secretary of Industries, Govt. of Assam. Interested Small Scale entrepreneurs may apply to the concerned DICC for claiming of Transport subsidy.

HIGHLIGHTS OF NEW INDUSTRIAL POLICY FOR NE REGION
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INTEGRATED INFRASTRUCTURAL DEVELOPMENT (IID) SCHEME
FOR SMALL SCALE INDUSTRIES IN THE BACKWARD/RURAL AREAS
  • The IID Scheme for Small Scale Industries to promote stronger linkages between agriculture and industry was lunched in 1994.
  • The scheme covers backward district / rural areas which were not covered under the Growth Centres Scheme, being implemented by the Department of Industrial Policy and Promotion.
  • The aim of the Scheme is to create and develop infrastructural facilities like developed sites, power, distribution net work, water, telecommunication, drainage and pollution control facilities, roads, banks, raw materials, storage and marketing outlets, common services facilities and technical backup services. Creation / upgradation of infrastructural facilities like power, water, communication etc. in the new/existing centres /industrial areas.
  • Under the scheme, the concerned State Government are required to select suitable sites in the rural/backward areas, firm up project proposals, get the project appraised from SIDBI.
  • The High Power Committee under the Scheme in the Ministry of SSI & ARI, Govt. of India considers the proposals only after recommendation of SIDBI becomes available.
  • The estimated cost to set up an IID centre is Rs. 5 crores (excluding cost of land) which is shared between the Govt. of India and SIDBI in the ratio of 2:3.
  • The share of the Central Government is in the form of grant and that of SIDBI as loan.
  • The cost in excess of Rs. 5 Crores will be borne by the respective State/UT's/implementing agencies.
  • With a view to give a fillip to the growth of Small Industries in the northeastern Region, Govt. of India has recently relaxed the funding pattern of this scheme for Northeast region. As per revised pattern, project cost is shared by Govt. of India and SIDBI in the ratio of 4:1, i.e., Govt. of India grant would be rs.4 crores and state share /SIDBI loan would be Rs. 1 crore.
  • State Public Sector Undertaking or corporate body or a good NGO can implement the IID Scheme.
  • Such agencies should have good track record and sound financial position as evident from their audited balance sheet
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