In what can be termed as a big boost to the industrial sector in the Northeast, the Union cabinet has given its nod to the much ambitious North-East Industrial Development Scheme 2017 or NEIDS, something that was believed by most people to have replaced the earlier North East Industrial and Investment Promotion Policy of 2007.
The scheme, just like the NEIPP, will promote industrialization in the eight states of the region, giving a major boost to the issue of employment and income generation.
The policy comes into effect from April 1, 2018 and continue till March 31, 2022, a day after the NEIPP, 2007, expired on March 31 last year. It was approved during a Cabinet meeting chaired by Prime Minister Narendra Modi, in presence of other members of the Union Cabinet including Home Minister Rajnath Singh, Finance Minister Arun Jaitley, among others.
The scheme is a combination of the incentives covered under the previous schemes with a much larger outlay of Rs 3000 Crore up to 2020. The overall cap for benefits under all components of incentives will be of Rs 200 crore per unit. The Government will also provide necessary allocations for the remaining period of the scheme after assessment before March 2020.
Under the policy, Government will be providing incentives primarily to the micro, small and medium enterprises sector to promote employment in the Northeast and will also provide specific incentive to generate employment.