North-East Industrial Development Scheme(NEIDS)

27-Mar-2023: A Total of 926 industrial units registered under the NEIDS under The North East Industrial Development Scheme

The North East Industrial Development Scheme (NEIDS), 2017, implemented by the Department of Promotion of Industry and Internal Trade (DPIIT) covers manufacturing and service sectors. The scheme provides incentives to eligible industrial units including Central Capital Investment Incentive for Access to Credit; Central Interest Incentive; Central Comprehensive Insurance Incentive; Income Tax Reimbursement; Goods & Services Tax Reimbursement of Central Share of Central Goods & Services Tax and Integrated Goods & Services Tax; Employment Incentive; and Transport Incentive.

As on 15.03.2023, a total of 926 industrial units (including conditional registrations) have been registered under the NEIDS, 2017. 74 projects proposing Plant & Machinery investment of more than Rs. 15.00 crore have been registered under the scheme. Of these, 06 projects have been provided incentives under Central Capital Investment Incentive for Access to Credit and a total of Rs. 164.05 crore has been released under the component to industrial units of NER. As per information provided by DPIIT there is no extension centre under the scheme. However, North Eastern Development Finance Corporation (NEDFi) has been engaged for disbursal of incentives to the eligible industrial units.

2022

4-Apr-2022: Efficacy of NEIDS in North East

Feedback has been received on North East Industrial Development Scheme (NEIDS), 2017 from various Industry Associations including Federation of Industry and Commerce of North Eastern Region (FINER) besides the State Governments.

One of main concerns expressed by FINER was delay in grant of registration to the industrial units under NEIDS, 2017. Since then the process has been further streamlined. States have been requested to forward the proposals from District Industries Centres and State Nodal Authorities in a time bound manner. Empowered Committee (EC) meeting is held on a monthly basis. So far 530 proposals with projected investment of about Rs. 3343 crore have been approved by the EC. Approved investments take 1-2 years to fructify or reach commercial production stage.

The Development Monitoring and Evaluation Office (DMEO), NITI Aayog has been entrusted with the evaluation study of the NEIDS, 2017, as per Department of Expenditure’s guidelines issued vide OM F. NO. 42(02)/PF-II/2014 dated the 08.12.2020 for formulation and approval of public funded schemes.

2021

25-Nov-2021: Registration granted to 105 Industrial Units under the North East Industrial Development Scheme (NEIDS), 2017 by the 9th Empowered Committee Meeting

Under the Chairmanship of Secretary, DPIIT, the Empowered Committee of North East Industrial Development Scheme (NEIDS) 2017, in its 9th meeting granted registration to 105 new industrial units in the North East. Till date, a total of 391 new industrial units with a proposed total investment of INR 2631.19 crore have been granted registration under NEIDS, 2017. With this all applications recommended for registration by the concerned state governments upto 31st October 2021 has been considered by the Empowered committee.

The total incentives envisaged by these 391 industrial units amounts to INR 1740.06 crore with projected employment generation of 15,987.

To promote industrialization in NE States and to boost employment and income generation, Government notified NEIDS, 2017 on 12.04.2018. The Scheme was formulated on the basis of suggestions received from State Governments, Industrial Associations and other stakeholders. The Scheme covers both manufacturing and service sector.

This could be achieved through key initiatives taken including developing an online application portal which allows submission of application and claim forms online besides online processing of the cases with each stage being intimated to the applicant. The Government of India has also delegated the powers for processing and approval of the claims to the State Governments with a view to expedite the release of incentives to the industrial units.

All the stakeholders are being periodically engaged through symposiums and workshops and one such mega engagement was held on 30th November, 2019 with the theme of “Accelerating Investment & Industrial Development in North-Eastern Region” by DPIIT with team members from Invest India and Ease of Doing Business (EoDB) Division, Departments heads in industries Departments of all the 8 State Governments, National bodies like APEDA and NER representatives from Industry Associations such as CII, FINER, Laghu Udyog Bharati, ASSOCHAM and FICCI etc. besides manufacturing and service sector units located in North East Region and other Stakeholders. Hand on training the processing on NEIDS portal were also provided.

2018

21-Mar-2018: Cabinet approves North-East Industrial Development Scheme 2017.

The Union Cabinet has approved the North East Industrial Development Scheme (NEIDS), 2017 with financial outlay of Rs.3000 crores upto March, 2020. Government will provide necessary allocations for remaining period of scheme after assessment before March 2020. NEIDS is a combination of the incentives covered under the earlier two schemes with a much larger outlay.

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.

Central Capital Investment Incentive for Access to Credit (CCIIAC)	30% of the investment in Plant & Machinery with an upper limit of Rs.5 Crore on the incentive amount per unit.
Central Interest Incentive (CII)	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.
Central Comprehensive Insurance Incentive (CCII)	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.
Income-Tax (IT) Reimbursement	Reimbursement of Centre's share of income tax for first 5 years including the year of commencement of commercial 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 finished goods, for movement through Inland Waterways Authority of India. 33% of cost of transportation of air freight on perishable 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’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 Mantri Rozgar Protsahan Yojana (PMRPY).

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