North East Industrial Development Scheme, 2017: Only Rs 1 crore allocated in 2019-20

Statistics given out by Prime Minister Narendra Modi and Union Home Minister Amit Shah have set the tone of ruling Bharatiya Janata Party (BJP) for electioneering for upcoming Assam Assembly polls. The statistics both Modi and Shah missed to quote in their speeches is that only Rs 1 Crore was allocated for the year 2019-20 under the North East Industrial Development Scheme, 2017.

The 227^th Report of the Department Related Parliamentary Standing Committee on Home Affairs on Action Taken by Government on the recommendations/observation by the committee on Demand for Grants (2020-21) of the Ministry of Development of North Eastern Region reveals this.

“As no claims were received from State Governments, no allocation was initially made in NEIDS Scheme for BE (Budget Estimates) 2019-20. At RE (Revised Estimates) stage, after constant follow-up, State Level Committee (SLC) of Assam confirmed about some claims being ready for consideration and a token amount of Rs. 1.00 crore was allocated. Govt. of Assam conducted the first meeting of SLC and considered the claims of six industrial units on 17th March, 2020,” states the report.

The committee presented the report to the Chairman, Rajya Sabha on December 21, 2020) and forwarded to the Speaker, Lok Sabha the same day. Based on the recommendations of the SLC, Rs.1.00 crore was released as advance to the six Industrial units in March 2019 through North East Development Finance Corporation before the mandatory Pre-Audit, states the report.

Photo courtesy CMO Assam

The government informed the parliamentary committee that in the current financial year (2020-21), an allocation of Rs.100 crore has been made and “efforts are being made to speed up the process of disbursal of incentives, by revisiting and simplifying stages involved in processing of the claims.”

The Government’s Action Taken Report was on a recommendation of the parliamentary committee in its 225^th Report that states: “The Committee is displeased to note that no fund has been sanctioned under NEIDS and respective State Level Committees of NEIDS have not recommended release of funds to any company. The Committee therefore recommends that a strategy should be chalked out to implement the programme/action plan to boost integrated and balanced industrialization in NER and to promote employment in the North East States.”

As on date, 104 industrial units have been registered by the empowered committee based on the recommendations of the State Government under NEIDS, 2017, states the report. The Modi government replaced the erstwhile North East Industrial Investment Promotion Policy (NEIPP), 2007 with the central sector scheme of NEDIS, 2017 notified in 2018 with an outlay of Rs 3000 crore for the eight north-eastern states.

Contrasted to this, official reports state that 31,471 industrial units were set up in the region under NEIIPP 2007, involving an investment of Rs.19,097 crore, which generated employment for 2,81,602 persons from April 2007 to March 2017. Since inception Rs 3000 Crore were released to the North-eastern states under the NIIPP, 2007.

Photo : Janasanyag Assam

NEIDS 2017 Scheme guidelines require all eligible industrial units to register with Department for Promotion of Industry & Internal Trade (DPIIT) through the portal and applicants have to submit applications along with Detailed Project Reports. Units should start commercial production within 18 months of registration and thereafter file their claims within one year from their date of commercial production under Central Capital Investment Incentive for Access to Credit (CCIIAC).

“After constant follow up and requisite hand holding by District industries Centres, only 67 claims that were able to start their commercial production could be registered on the web portal for processing,” the parliamentary panel report quoted the government reply.

Prior to notification of the NEIDS, 2017 the Modi government in 2014 announced suspension of NEIPP, 2007 prohibiting registration of any new unit under the policy, citing inadequate budgetary support against subsidy claims as the reason.

Sushanta Talukdar