The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the North East Industrial Development Scheme (NEIDS), 2017 with financial outlay of Rs.3000 crores up to March 2020. 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.
Highlights of the scheme:
Central Capital Investment Incentive for Access to Credit (CCIIAC): 30% of the investment in Plant & Machinery with an 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/ Financial institutions for first 5 years from the date of commencement of commercial production by the unit.
Central Comprehensive Insurance Incentive (CCII): Reimbursement of 100% insurance premium on insurance of building and Plant & Machinery for 5 years from the date of commencement of commercial production by the unit.
Goods and Service Tax (GST) Reimbursement: Reimbursement up to the extent of Central Govt. 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 the year of commencement of commercial production by the unit.
Additionally, transport and employment incentives are also provided under the scheme.