Centre announces scheme for Northeast India industrialisation

GUWAHATI: The Cabinet on Wednesday approved approved the North East Industrial Development Scheme (NEIDS), 2017 with financial outlay of Rs 3,000 crores upto March, 2020.

Government will provide necessary allocations for remaining period of scheme after assessment before March 2020.

According to a government statement in order to promote employment in the North East States, Government is incentivizing primarily the MSME Sector through this scheme. Government is also providing specific incentive through the scheme to generate employment.


All eligible industrial units, which are getting benefits of one or more components of other schemes of the Government of India, will also be considered for benefits of other components of this scheme.

Under the Scheme, Central Capital Investment Incentive for Access to Credit30% 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 will provided.


The policy provides for central Comprehensive Insurance Incentive (CCII) Which entails 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 and Reimbursement of Centre's share of income tax for first 5 years including the year of commencement of commercial production by the unit.

The policy stipulates 20% of the cost of transportation including the subsidy currently provided by Railways/Railway PSU for movement of finished goods by rail.

20% of cost of transportation for finished goods, for movement through Inland Waterways Authority of India.

33% of cost of transportation of air freight on perishable goods from the airport nearest to place of production toany airport within the country.

The Government will pay 3.67% of the employer’s contribution to the Employees Provident Fund (EPF) in addition to Government bearing 8.33% Employee Pension Scheme (EPS) contribution of the employer in the Pradhan MantriRojgarProtsahanYojana (PMRPY).

The overall cap for benefits under all components of incentives will be of Rs. 200 crores per unit.