Rs 89.99 crore earmarked for Northeast under NEIIPP, 2007

Agartala, May 17 (UNI) The Centre has earmarked Rs 89.99 crore for implementing various schemes under the Northeast Industrial and Investment Promotion Policy(NEIIPP), 2007 during the current fiscal.

The NEIIPP was announced last month and the Centre had approved a package of fiscal incentives for setting up industrial units in the region.

State Industry Minister Tapan Chakraborty told UNI here today that the new policy had included Sikkim.

All the existing units would go for substantial expansion, he stated.

The Centre had allocated the fund to restore, repair and set up new infrastructure for industrial development of the region and to attract outside investment.

The new policy had offered incentives to all industrial units in the region on their substantial expansion.

Incentives on substantial expansion will be given to units effecting an increase by not less than 25 per cent in the value of fixed capital investment in plant and machinery for the purpose of expansion of capacity or modernisation and diversification as against an increase by 33.5 per cent, which was prescribed in NEIP, 1997, Mr Chakraborty said.

Welcoming investors, Mr Chakraborty said, ''100 per cent excise duty exemption will continue on finished products made in the region.'' Capital investment subsidy, applicable to units in private sectors, joint enterprise and cooperative sector as well as the units set in the region was enhanced from 15 per cent of the investment in plant and machinery to 30 per cent, and the limit for automatic approval of subsidy at this rate would be Rs 1.5 crore per unit as against Rs 30 lakh, he pointed out.

UNI