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Central Subsidies
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Transport Subsidy Scheme
INTRODUCTION
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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.
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The scheme came
into effect from July 15,1971 and shall remain operational till
March 31, 2007 for the NE region.
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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.
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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.
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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.
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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
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Industrial units
located in the NE region in respect of raw material brought into
and finished goods taken out of the region.
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Not eligible for
the internal movements of goods within the states.
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Transport costs
comprises the movement from Siliguri to the nearest Railway
Station and thereafter by road up to the factory site and
vice-versa.
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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.
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Cost of loading
and unloading and other handling charges shall not be included
in transport cost.
AMOUNT OF ADMISSIBLE SUBSIDY
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@ 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.
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@ 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.
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@ 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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