Schemes

I. On 21st March, 2018 Government of India has approved North East IndustrialDevelopment Scheme (NEIDS), 2017 with financial outlay of Rs.3000 crores uptoMarch, 2020. Government will provide necessary allocations for remaining period ofscheme after assessment before March 2020. NEIDS is a combination of theincentives covered under the earlier two schemes with a much larger outlay.

To promote employment in the North East States, Government is incentivizingprimarily the MSME Sector through this scheme. Government is also providing specificincentive through the scheme to generate employment.

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

II. Under the Scheme, the following incentives shall be provided to new industrialunits set up in the North Eastern States including Sikkim:

Central Capital InvestmentIncentive for Access to Credit(CCIIAC)
30% of the investment in Plant & Machinery with anupper limit of Rs.5 Crore on the incentive amount perunit.

Central Interest Incentive (CII) 3% on working capital credit advanced by eligible
Banks/ Financial institutions for first 5 years from thedate of commencement of commercial production bythe unit.

Central ComprehensiveInsurance Incentive (CCII)Reimbursement of 100% insurance premium oninsurance of building and Plant & Machinery for 5years from the date of commencement of commercialproduction by the unit.

Goods and Service Tax (GST)ReimbursementReimbursement up to the extent of Central Govt.share of CGST and IGST for 5 Years from the date ofcommencement of commercial production by theunit.

Income Tax (IT)ReimbursementReimbursement of Centre’s share of income tax for
first 5 years including the year of commencement ofcommercial production by the unit.

Transport Incentive (TI) •
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 finishedgoods for movement through Inland
Waterways Authority of India.

• 33% of cost of transportation of air freight onperishable goods (as defined by IATA) from
the airport nearest to place of production toany airport within the country.

Employment Incentive (EI) The Government shall pay 3.67% of the employer’scontribution to Employees’ Provident Fund (EPF) inaddition to Government bearing 8.33% EmployeePension Scheme (EPS) contribution of the employerin the Pradhan Mantri Rojgar Protsahan Yojana(PMRPY).

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

iv. The newly introduced scheme shall promote industrialization in the States of the
North Eastern Region and will boost employment and income generation