Centre approves Rs 3000-crore special scheme for Northeastern states
NORTHEAST | March 23, 2018
Even as Andhra Pradesh continues to press for special category status, the Centre has cleared a Rs 3000-crore special scheme to incentivize the MSME sector and generate employment opportunities in the northeastern states.
The Centre took the decision to sanction the special package on Wednesday.
"MSMEs comprise the biggest chunk of industrialization in the northeast and so the focus of this scheme is on this sector. This sector is also the biggest creator of employment," Assam commerce and industry minister Chandra Mohan Patowarysaid on Thursday. He added that this is the only special policy in force in the country.
The scheme, called the North-East Industrial Development Scheme' (NEIDS) – 2017, is a successor to the Northeast Industrial Investment Promotion Policy (NEIPP) which the NDA government had suspended in 2014. It did not renew it for nearly one year after its expiry last March.
The scheme has completely done away with transport subsidy by road in both private and public sectors, which was the primary loophole in the previous policies resulting in leakage of funds.
Patowary said, "The new policy has plugged all loopholes. It does not provide any subsidy on road transport subsidy. Instead, subsidy is being given to transportation of finished products by railways (20%), waterways (20%) and perishable goods by air (33%) within the boundaries of the country."