North Eastern Industrial and Investment Promotion Policy (NEIPP): Most Important Topic For 2019 NTSE

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With a view to give a further boost to industrialization in the North Eastern Region, the erstwhile North East Industrial Policy (NEIP), 1997 was revised & a new policy, namely North East Industrial & Investment Promotion Policy (NEIIPP) 2007, was notified that is 1.4.2007 which will remain in force Upto 31.03.2017. Benefits under NEIIPP, 2007 have also been extended, for the first time, to select Service Sector units, Bio-technology units and Power Generating units (up to 10 MW), besides industries in the manufacturing Sector.

Scheme Objectives: -

The objective of the scheme is to boost industrialization in North Eastern Region.

Coverage and eligibility: -

  • NEIIPP, 2007 covers the entire North East Region comprising States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, & Tripura & Sikkim. NEIIPP, 2007 is applicable to all industrial units in manufacturing Sectors, select service sector, Biotechnology & Power Generating units (up to 10 MW) (barring the units producing tobacco & manufactured tobacco substitutes, pan masala and plastic carry bags of less than 20 microns, refineries, Calcined Petroleum Coke & Bitumen Emulsion & units engaged in peripheral activities like preservation during storage, cleaning operations, packing, re- packing, labeling or re-labeling, sorting, alteration of retail sale price etc.).

  • Budget Availability / utilization since last five years: - The budget allocation for schemes under NEIIPP, 2007 for the 12th Five year plan is Rs.700 crores, however, Rs.841.72 crore (including Rs.170 crore allocated at BE 2016-17) has already been released till 29.03.2017. Details of budget availability for the Policy during the last five years are as under: (Rs. in crore)

Implementing Agency: -

DIPP is the implementing agency of NEIIPP, 2007. North Eastern Development Finance Corporation Ltd. (NEDFi), Guwahati is the nodal agency for disbursal of subsidies under various subsidy schemes of NEIIPP, 2007.

Monitoring and Review Mechanism: -

Each component of the Scheme under NEIIPP, 2007 has inbuilt provision of monitoring the implementation of scheme viz. refund of grant if the beneficiary unit gives false information or goes out of production within 5 years of commercial production, no change of location of industrial units without prior approval of the Central/State Government concerned, furnishing of utilization certificate of subsidy within a period of one year of receipt of full amount, submission of annual progress report by the beneficiary unit to Central/State Government concerned, about its working for a period of 5 years after going into production etc.

Evaluation of the Scheme: -

DIPP carried out an evaluation study of NEIIPP, 2007 to assess its impact through an independent agency. The Study Report was received in March, 2015 and the Study recommended as follows:

  • Focus should be given to promotion of MSME Sector as they contribute more to employment generation

  • Subsidies under the Policy to be limited to an investment of Rs.10 crore on Plant & Machinery

  • Focus to be given to States like Nagaland, Manipur, & Mizoram & Sikkim which received less benefits

  • Steps should be taken by State Govts. Of NER to establish Industrial Clusters

  • Improvement in training of State Government officials and conduct of awareness generation activities among entrepreneurs

  • Improvement in monitoring mechanism & conduct of periodic reviews.

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