A new scheme for infrastructure development in the northeastern states with 100 per cent funding by the central government was on Friday approved by the Union cabinet along with a capital investment subsidy amounting to Rs 264.67 crore.
The Union Cabinet, chaired by Prime Minister Narendra Modi, also approved the continuation of the existing Non Lapsable Central Pool of Resources (NLCPR) scheme with funding pattern of 90:10 till March, 2020, with an outlay of Rs 5,300 crore to enable completion of ongoing projects, an official statement said.
The cabinet approved the introduction of new central sector scheme of North East Special Infrastructure Development Scheme (NESIDS) from 2017-18 with 100 percent funding from the central government to fill the gaps in creation of infrastructure in specified sectors till March, 2020.
The new scheme will broadly cover creation of infrastructure relating to water supply, power, connectivity and especially the projects promoting tourism, social sectors of education and health, the statement said.
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The assets to be created under the new scheme of NESIDS will not only strengthen healthcare and education facilities in the region, but will also encourage tourism, thereby providing employment opportunities to the local youth.
The scheme will act as a catalyst in overall development of the region in the years to come, it said.
The Cabinet Committee on Economic Affairs, headed by the prime minister, also approved the capital investment subsidy amounting to Rs 264.67 crore to four industrial units in the North-Eastern Region, including Sikkim, under the Central Capital Investment Subsidy Scheme (CCISS), 2007 of North East Industrial Investment and Promotion Policy (NEIIPP), 2007.
The CCEA has revised financial powers for approval of capital investment subsidy claims up to Rs 500 crore which will be now approved by the Minister of Commerce and Industry. This will facilitate expeditious settlement of claims.
The grant of subsidy to the industrial units will not only provide incentives to the operational units but also boost confidence of existing investors as well as potential investors in the states of NER, another statement said.
The central government has been implementing this scheme to promote industrialisation in the Northeastern region.