This program, which aims to boost the North East’s industrial environment and draw in new investment, was recently unveiled by the Indian government’s Ministry of Commerce and Industry.
- All eight of the Northeastern states—Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura—will be included in the scheme.
- The program will be in place from March 9, 2024, to March 8, 2024.
- The program covers the manufacturing and service sectors.
- Zone A (Industrially Advanced Districts) and Zone B (Industrially Backward Districts) have different incentive amounts. A separate list of the districts in Zones A and B will be released.
Types of Incentives
1) Capital Investment Incentive (CII)
Both New as well as Expanding units from both the manufacturing and service sectors will be eligible.
- Zone A – 30% on eligible investment in Plant & machinery (for manufacturing sector) or for construction of building and other durable physical assets (for service sector) up to Rs. 5.00 Cr. For those sectors where GST is not applicable, maximum incentive will be Rs. 10.00 Cr.
- Zone B – 50% on eligible investment in Plant & machinery (for manufacturing sector) or for construction of building and other durable physical assets (for service sector) up to Rs. 7.50 Cr. For those sectors where GST is not applicable, maximum incentive will be Rs. 10.00 Cr.
2) Capital Interest Subvention (CIS)
Both New as well as Expanding units from both the manufacturing and service sectors will be eligible. Interest on loan up to the principal amount of Rs. 250 Cr. will be considered.
- Zone A – 3% for a maximum of 7 years.
- Zone B – 5% for a maximum of 7 years.
3) Manufacturing & Services Linked Incentive (MSLI)
Only New units having a valid GST Identification Number (GSTIN) will be eligible.
- Zone A – 100% of net payment of GST for a maximum of 10 years. The upper limit of the benefit is up to 75% of eligible investment value of Plant & Machinery (for manufacturing sector) or construction of building and other durable physical assets (for service sector).
- Zone B – 100% of net payment of GST for a maximum of 10 years. The upper limit of the benefit is up to 100% of eligible investment value of Plant & Machinery (for manufacturing sector) or for construction of building and other durable physical assets (for service sector).