Revision of North East Industrial and Investment Promotion Policy, 2007 for new industrial units- (Ministry of Commerce and Industry) (24 Nov 2016)
MANU/INDP/0026/2016
Commercial
1. Government had approved a package of incentives and concessions to promote industrialization and investment in the North East Region (including Sikkim) under the "North East Industrial and Investment Promotion Policy, 2007", notified vide O.M. No. 10 (3)/2007- DBA.II/NER dated 1st April, 2007. In pursuance of the above policy, the Central Interest Subsidy Scheme, 2007 and Central Capital Investment Subsidy Scheme were notified vide Notification No.10(3)/2007- DBA.II/NER dated 27.7.2007.
2. Pending review of the outcome of the implementation of the Policy, registration of new industrial units was suspended w.e.f. 1.12.2014.
3. It has now been decided by the Government to revise the above Policy for the industrial units which had commenced production on or after 1.12.2014 (hereinafter referred to as 'the new industrial units'). The units registered before 1.12.2014 would continue to get benefits as per pre-revised norms. The new industrial units who are eligible for registration are, therefore, now invited to register themselves and avail the following benefits as per revised norms of subsidy. The suspended registration process is, therefore, being resumed with immediate effect.
A. Revision of Central Interest Subsidy Scheme for new units:
The subsidy will be provided in terms of the scheme notified vide Notification No.10(3)/2007- DBA.II/NER dated 27.7.2007 except that the interest subsidy will be available only on term loans of 5-10 years maturity taken to finance capital expenditure on setting up of industrial units or for capital expansion on substantial upgradation / modernization. The interest subsidy will be limited to term loans up to Rs. 10 crore only to subsidize cost of borrowing above PLR to the extent of up to 3% p.a. so as to ensure that post-subsidy interest rate does not fall below the Prime Lending Rate of the concerned bank or financial institution. The subsidy due every year will be accumulated in a separate account and adjusted against the outstanding loan / interest due at the time of closure of the term loan.
B. Revision of Central Capital Investment Subsidy Scheme
The subsidy will be provided in terms of the scheme notified vide Notification No.10(3)/2007-DBAII/NER dated 27.7.2007 except that the subsidy for the new units (which commenced production after 1.12.2014) will be limited to Rs. 5 crore per industrial unit operating in manufacturing sector and Rs. 3 crore per industrial unit operating in services sector.
Revision of disbursement mechanism
4. Government has also decided that henceforth the subsidies payable to all the industrial units will be disbursed through Direct Benefit Transfer mechanism by the Chief Controller of Accounts (Industry) for which the units would need to get themselves registered on the e-payment portal by providing required bank mandates etc. Only to this extent, the role and responsibility of North East Development Financial Corporation (NEDFi), Guwahati will be modified. The quantum of eligible subsidies will be based on the recommendations of the State Level Committees and credited directly into the DBT-linked bank accounts of the beneficiary industrial units after due checks, verifications and audits.
Tags : INCENTIVES INDUSTRIALIZATION PROMOTION
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