The Government has approved a package of fiscal incentives and other concessions for the North East Region namely the ‘North East Industrial and Investment Promotion Policy (NEIIPP), 2007’, effective from 1-4-2007.
NEIIPP covers the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim.
All new units as well as existing units which go in for substantial expansion, unless otherwise specified and which commence commercial production within the 10 year period from the date of notification of NEIIPP, 2007 will be eligible for incentives for a period of ten years from the date of commencement of commercial production.
Eligibility under Service Sector:
- Hotels (not below Two Star category), adventure and leisure sports including ropeways ;
- Medical and health services in the nature of nursing homes with a minimum capacity of 25 beds and old-age homes ;
- Vocational training institutes such as institutes for hotel management, catering and food crafts, entrepreneurship development, nursing and paramedical, civil aviation related training, fashion, design and industrial training.
- Incentives on substantial expansion will be given to units affecting ‘an increase by not less than 25% in the value of fixed capital investment in plant and machinery for the purpose of expansion of capacity/modernization and diversification’.
- 100% Excise Duty exemption on finished products made in the North Eastern Region.
- 100% Income Tax exemption.
- Capital Investment Subsidy will be given upto 30% of the investment in plant and machinery. The limit for automatic approval of subsidy at this rate will be Rs. 1.5 crores per unit, as against Rs.30 lakhs. Such subsidy will be applicable to units in the private sector, joint sector, cooperative sector as well as the units set up by the State Governments of the North Eastern Region.
- Interest Subsidy will be made available @ 3% on working capital loan.
- New industrial units as well as the existing units on their substantial expansion will be eligible for reimbursement of 100% insurance premium.
For more Details: Click Here