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Central Subsidies

Central Subsidies

Transport Subsidy Scheme

INTRODUCTION
  • The scheme is applicable to all industrial units (barring plantation, refineries and power generating units) both in public and private sector irrespective of their sizes in the selected areas.

  • The scheme came into effect from July 15,1971 and shall remain operational till March 31, 2007 for the NE region.

  • The scheme is to subsidize the transport cost on raw material and finished goods to and from NE states and inter state movement within the NE region.

DEFINITIONS
  • Industrial Unit: Where a manufacturing program is carried on.
  • New industrial unit: Industrial unit that has set up manufacturing capacity and comes into production on or after the date of commencement of the scheme.

  • Existing industrial unit: Industrial unit that has set up manufacturing capacity and comes into production before July15,1971 and undertaken substantial expansion on or after July15,1971.

  • Substantial expansion: Increase in production by 25% or more of the approved capacity.

  • Diversification: Manufacture of new article(s) by 25% or more of approved capacity.
ELIGIBILITY NORMS
  • Industrial units located in the NE region in respect of raw material brought into and finished goods taken out of the region.

  • Not eligible for the internal movements of goods within the states.

  • Transport costs comprises the movement from Siliguri to the nearest Railway Station and thereafter by road up to the factory site and vice-versa.

  • In the case of raw materials moving entirely by road or other mode of transport, transport cost will be limited to the amount mentioned in the above para.

  • Cost of loading and unloading and other handling charges shall not be included in transport cost.

AMOUNT OF ADMISSIBLE SUBSIDY
  • @ 90% of the transport cost for the movement of raw materials from one state to another within the NE region as well as outside the NE region.

  • @ 90% of the transport cost for the movement of finished goods outside the NE region and @ 50% of transport cost from one state to another within the NE region.

  • @ 90% of the transport charges for movement of steel from Guwahati Stockyard of M/s Steel Authority of India Limited (SAIL) to the site of the industrial units in the NE region.

 


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