27 December 2018: UPSC Exam PIB Summary & Analysis

Read the daily PIB update and stay up-to-date on current affairs for the UPSC exam

North East Industrial Development Scheme (NEIDS)

About:

North East Industrial Development Scheme (NEIDS), 2017 covers eligible industrial units in the manufacturing and service sectors Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim to promote industrialization and boost employment and income generation.

Importance Of NEIDS

  • Promote industrialization: It will promote industrialization in North Eastern Region (NER) states including Sikkim and will boost income generation and will boost income generation and employment.
  • Promote employment: For this, government is incentivizing primarily MSME Sector through this scheme. It is also providing specific incentive through scheme to generate employment.
  • Benefits to industrial units: It will provide various incentives and benefits to all eligible industrial units. The overall cap for benefits under all components of incentives will be of Rs. 200 crores per unit.

 Incentives to be provided to new industrial units in NER

  • Central Capital Investment Incentive for Access to Credit (CCIIAC):30% of investment in Plant and Machinery with upper limit of Rs.5 Crore on the incentive amount per unit.
  • Central Interest Incentive (Cll): 3% on working capital credit advanced by eligible Banks and Financial institutions for first 5 years from date of commencement of commercial production.
  • Central Comprehensive Insurance Incentive (CCII): Reimbursement of 100% insurance premium on insurance of building and Plant & Machinery for 5 years from date of commencement of commercial production.
  • Goods and Service Tax (GST) Reimbursement: Reimbursement upto the extent of central government share of CGST and IGST for 5 years from the date of commencement of commercial production by the unit.
  • Income-Tax (IT) Reimbursement: Reimbursement of centre’s share of income tax for first 5 years including year of commencement of commercial production by unit.
  • Employment Incentive (EI): The Government will pay 3.67% of employer’s contribution to Employees Provident Fund (EPF) in addition to its bearing 8.33% Employee Pension Scheme (EPS).
  • Transport Incentive (TI): Indian Railways will provide 20% of cost of transportation including subsidy   currently   provided for movement of finished goods by rail. Inland Waterways Authority of India (IWAI) will provide 20% of cost of transportation for finished goods for movement through inland waterways. Airport nearest to place of production will provide 33% of cost of transportation of air freight on perishable goods (defined by IATA) to any airport within country.

To ace UPSC current affairs section, read more PIB articles here.

Also see: