Anand Sharma with some Industry Ministers of North Eastern states, J&K and Uttarakhand, in New Delhi on Tuesday.

SME Times News Bureau | 22 Feb, 2012
Commerce, Industry and Textile Minister Anand Sharma and states of North Eastern region and special category states discussed the ways of incentivizing transportation of raw material and finished goods by inland water transport and additional incentives to MSME sector.

The minister held the consultations with the NE states and special category states of Jammu and Kashmir, Uttrakhand, Himachal Pradesh, West Bengal and UT of Andaman Nicobar Island and Lakshdweep on review of Transport Subsidy Scheme (TSS), North East Investment Promotion Programme and Special Packages and textiles.

The Transport Subsidy Scheme was introduced way back in the early 70s to offset the high transportation cost because of poor infrastructure and geographical inaccessibility in these States.

“We are now in the process of revamping the Scheme and in doing so, we had undertaken a detailed study of the operation of the Scheme over the last several years and the matter will be referred to the Cabinet, incorporating all your suggestions, for a final view,” Sharma said.

Under the Special Package provided to these States, Central Government have been providing subsidy of 15% to 30% on plant and machinery as capital investment subsidy. Apart from this, the government has been providing working capital loans for a period upto 10 years from the date of commencement of commercial production and reimbursement of 100% insurance premium.

“For the Special Category States of Himachal Pradesh, J&K and Uttrakhand, over 46,000 industrial units have either been set up or are in the pipeline with a total investment of over Rs. 37,400 crore. These are estimated to provide gainful employment to over 4.84 lakh people” said the minister.

He added that the time has now come to give a focused and integrated thrust to the development of North Eastern Region. "While provision of subsidy will remain an important element in catalyzing industrial development, equally important will be a thrust on infrastructure development within the region and linkages with the rest of the country," he said.

Under the ASIDE Scheme, Department of Commerce has allocated Rs. 55.28 crore for the North Eastern Region and Rs. 14.93 crore for Himachal Pradesh, J&K and Uttrakhand for 2011-12.