Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce & Industry has been implementing many schemes for providing incentives to industries in the States of Jammu & Kashmir, Himachal Pradesh, Uttarakhand and North Eastern States including Sikkim.
The scheme for Jammu & Kashmir provides Central Capital Investment Incentive at the rate of 30% of the investment in plant & machinery with an upper limit of Rs. 5 crore). Central Interest Incentive at the rate 3% interest on working capital for 5 years and Central Comprehensive Insurance Incentive (Reimbursement of 100% insurance premium for 5 years are also available. The scheme is in force from 15.6.2017 to 31.3.2022.
The scheme for Himachal Pradesh &Uttarakhand provides Central Capital Investment Incentive at the 30% of the investment in plant & machinery with an upper limit of Rs. 5 crore and Central Comprehensive Insurance Incentive (Reimbursement of 100% insurance premium for 5 years). The scheme is in force from 1.4.2017 to 31.3.2022.
The scheme for North Eastern states including Sikkim provides (i) Central Capital Investment Incentive (30% of the investment in plant & machinery with an upper limit of Rs. 5 crore), (ii) Central Interest Incentive (3% interest on working capital for 5 years), (iii) Central Comprehensive Insurance Incentive (Reimbursement of 100% insurance premium for 5 years), (iv) Income Tax Reimbursement of centre’s share for 5 years, (v) GST reimbursement of Central Govt. share of CGST & IGST for 5 years, (vi) Employment Incentive under which additional 3.67% of the employer’s contribution to EPF in addition to Govt. bearing 8.33% Employee Pension Scheme (EPS) contribution of the employer in PMRPY and (vii) Transport incentive on finished goods movement by Railways(20% cost of the transportation), by Inland Waterways Authority (20% of the cost of transportation) & by air (33% of cost transportation of air freight) from the station/port/airport nearest to unit to the station/port/airport nearest to the destination point.
Under this scheme a single unit can avail overall benefits up to Rs. 200 crore.
Scheme of Budgetary Support to the eligible units located in the states of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North Eastern States including Sikkim under Goods and Service Tax Regime extends benefits of GST reimbursement of central government share of CGST&IGST to the industrial units for the residual period to them which were earlier availing excise exemption in the pre-GST regime. The scheme is in force from 01.07.2017 till 30.06.2027.
In addition, under this scheme, DIPP is implementing Modified Industrial Infrastructure Up-gradation Scheme (MIIUS) to upgrade common industrial infrastructure in industrial parks, estates and areas in the country including green field projects in backward areas including NER.
