New Delhi, March 26: With an aim to promote employment in North East a new step got a nod: North East Industrial Development Scheme (NEIDS), 2017 was approved for promoting the employment opportunities for North East’s youngsters. This new scheme also aims to encourage industrial development in the North East.
The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the North East Industrial Development Scheme (NEIDS), 2017 with financial outlay of Rs.3000 Crores up to March, 2020.
Under this scheme the government will provide necessary allocations for the remaining period of the scheme after assessment before March 2020. NEIDS is a combination of the incentives covered under the earlier two schemes with a much larger outlay.In order to promote employment in the North East States; Government is incentivizing primarily the MSME Sector through this scheme. The government will also provide specific incentive through the scheme to generate employment.
All eligible industrial units, which are getting benefits of one or more components of other schemes of the Government of India, will also be considered for benefits of other components of this scheme.
On the tax front, new units will get a reimbursement of the goods and services tax (GST) that they pay to the central government for a period of five years from the date of commencement of production. The units will also be reimbursed the centre’s share of income tax for five years.
These units will also get a 3% interest subsidy on working capital credit for the first five years. In addition, they will get a central capital investment incentive amounting to 30% of the investment in plant and machinery, with an upper limit. They will also get full reimbursement of insurance premium on buildings, plants and machinery for five years.
To counter the geographical and logistical hardship of setting up units in the north-east, the scheme proposes a transport incentive. These units will get a transport incentive of 20% of their cost of transportation using railways and inland waterways, and 33% in the case of air freight for perishable items.
There is also an employment incentive wherein the central government will contribute up to 3.67% of the employer’s contribution to the employees' provident fund.