The 11 Special Category States (SCS) received industrial incentives worth Rs 975 crore in the 3-year period between 2013-14 and 2015-16. The subsidy was given under two different schemes which are going to end in 2017 and 2018 respectively.
Though the term Special Category States (SCS) is not very relevant post the 14th Finance Commission recommendations, certain Industrial subsidy schemes for the 11 SCS still continue. These schemes will expire in the coming two years. According to the data shared by Department of Industrial Policy & Promotion (DIPP) in response to an application under RTI, the government of India has extended more than Rs 975 crore in various industrial subsidy schemes between 2013-14 and 2015-16 to these 11 SCS.
The Industrial Subsidy Schemes
The DIPP is currently implementing the following Industrial Subsidy schemes for the SCS states
- The North East Industrial & Investment Promotion Policy (NEIIPP) 2007: This scheme covers the eight (8) North Eastern states. Capital Investment Subsidy is provided under this scheme. Fresh registrations under this scheme have been suspended from December 2014. This scheme will end in March 2017.
- Freight Subsidy Scheme 2013: The Transport Subsidy Scheme of 1971 was modified and notified as the Freight Subsidy Scheme in 2013. This scheme covers the 8 North Eastern States, Himachal Pradesh, Uttarakhand, Jammu & Kashmir, Andaman & Nicobar, Lakshadweep and Darjeeling district of West Bengal. Subsidy on transportation is provided both for raw material and finished goods under this scheme. The scheme will end in January 2018.
States like Jammu & Kashmir, Uttarakhand and Himachal Pradesh were extended special industrial incentive packages in the past.
Rs 404 Crore released as Freight/Transport Subsidy in the last 3 years
A total of Rs 404.5 crore has been released under Freight/Transport subsidy scheme to the above mentioned states and areas between 2013-14 and 2015-16. Rs 220 crore was released in 2013-14, Rs 124.5 crore in 2014-15 and Rs 60 crore in 2015-16. Meghalaya received the greatest amount under this scheme which is Rs 255.7 crore. Most of this amount (Rs 187.66 crore) was received in 2013-14. Jammu & Kashmir, Uttarakhand, Arunachal Pradesh, Nagaland, Sikkim, Lakshadweep and Darjeeling district did not receive a single rupee in these 3 years under this scheme. Only three states (Assam, Meghalaya & Tripura) received incentives under this scheme in 2015-16.
Rs 571.9 crore released under NEIIPP in 3 years
Only 6 out of the 8 North Eastern states received subsidy amount under this scheme between 2013-14 and 2015-16. Manipur and Nagaland did not receive a single rupee in these 3 years. Rs 150 crore was released under this scheme in 2013-14, Rs 221.9 crore in 2014-15 and Rs 200 crore in 2015-16. Meghalaya received the highest amount in 2013-14 (Rs 116.84 crore), Assam in 2014-15 (Rs 134.02 crore) and 2015-16 (Rs 111.1 crore). Overall, Assam received Rs 277.69 crore in the 3-year period followed by Meghalaya (Rs 224.31 crore). Together, Assam & Meghalaya received 88% of the subsidy released under this scheme in the 3-year period.
Featured Image: Industrial Incentives