NEW INCENTIVES TO PROMOTE KHADI
INDUSTRY IN NORTH EAST
LOK SABHA
The
Union Government has imparted exemption of excise and income tax
for all industries including agro and rural industries in the
NE Region for ten years as part of the fiscal incentives under
the New Industrial Policy for NE Region announced in 1997.
The Government through
Khadi and Village Industries Commission (KVIC) is already implementing
the Rural Employment Generation Programme (REGP) in the North-Eastern
Region including Bodoland Territory in Assam to promote new entrepreneurs
for setting up agro and rural industries by way of providing margin
money etc., so as to create job/employment opportunities. Under
this scheme, margin money assistance is provided at the rate of
30 per cent of the project cost upto Rs. 10 lakhs and for the
project above Rs. 10 lakhs and upto Rs. 25 lakhs, rate of margin
money is 30 per cent of Rs. 10 lakhs plus 10 per cent on remaining
cost of the project. Under the scheme, the beneficiary’s contribution
is 5 per cent of the project cost. The implementation of the scheme
is being financed through public sector banks, regional rural
banks, State cooperative banks, etc.
Under the REGP Scheme,
a total number of 11085 units have been set up in the North-Eastern
Region as on 30.06.2003, with an investment of Rs. 6173.54 lakhs
as margin money from KVIC and Rs. 24694.03 lakhs as bank loan.
During 2002-03 and 2003-04 (upto October, 2003), 66 units with
Rs. 12.62 lakhs margin money having project cost of Rs. 42.62
lakhs have been established in the Bodoland region, the Minister
added.
This information
was given by the Minister of Agro and Rural Industries, Shri Sangh
Priya Gautam in written reply to a question in Lok Sabha today.
