CCEA approves Rs 86-cr subsidy to Adhunik Cements

NEW DELHI: Government today approved Rs 86.09 crore subsidy to Adhunik Cements, Meghalaya, a move that is likely to promote industrialisation in the North Eastern region.

"The Cabinet Committee on Economic Affairs today approved Rs 86.0973 crore to Adhunik Cements Ltd, Meghalaya as Central Capital Investment Subsidy under Central Capital Investment Subsidy Scheme (CCISS), 2007 of the North East Industrial and Investment Promotion Policy (NEIIPP), 2007," an official release said.

"The grant of the subsidy will not only provide incentives to the operational units but also boost the confidence of existing investors as well as potential investors in the states of the North East Region," it added.

This is the first claim under NEIIPP, 2007 which has been brought for the consideration of the Union Cabinet paving the way for approval of other similar cases.

In order to promote industrialisation and boost investment in the North Eastern Region, CCISS, 2007 provides for Capital Investment Subsidy at the rate of 30 per cent of investment in plant and machinery.

Subsidy upto Rs 1.5 crore is approved by the State Level Committee and from Rs 1.5 crore to Rs 30 crore by an Empowered Committee chaired by Secretary, Department of Industrial Policy and Promotion (DIPP).

Proposals which are eligible for a subsidy higher than Rs 30 crore are placed by DIPP before the Union Cabinet for its consideration and approval.