Guwahati: A parliamentary panel on commerce has opined that continuation of The North East Industrial Development Scheme (NEIDS) for a longer time is necessary to accelerate industrial development of the North Eastern Region and also to compensate for the disruptions in the implementation of the scheme during the last two years due to the COVID-19 pandemic.

The panel in its report has recommended to the Commerce Department to consult industry stakeholders and concerned State Governments for an extension of the scheme beyond April 1 so that new registrations can be granted to industrial units.

There has been no information regarding the continuation of the scheme beyond the stipulated date.

The North East Industrial Development Scheme, 2017 was notified on December 12, 2018, and came into effect from April 1, 2017, for a period of five years. The Department informed that 190 industrial units have been granted registration and 9 industrial units have also been granted conditional registration under the North East Industrial Development Scheme (NEIDS), 2017 during 2021-22. Further, 116 industrial units have also been recommended by the State Governments for grant of registration by the Empowered Committee of NEIDS, 2017, and are under process.

To date, a total of 394 industrial units have been granted registration under the scheme, envisaging a total incentive amounting to Rs. 1740.00 crore for these industrial units. Hence, it is anticipated that there will be incremental
increase in the number of claims filings by the industrial units from next financial year onwards.

The Committee is of the opinion that adequate allocation under this scheme is vital for the uninterrupted implementation of the scheme.

It is apprehensive about the adequacy of the allocation for FY 2022-23 to meet the requirements of claims from the 394 industrial units which have already been granted registration. The Committee, therefore, recommends the Department to ensure that adequate funds are available to clear the claims received from the industrial units

The North East Industrial and Investment Promotion Policy (NEIIPP), 2007 said that the allocation of Rs. 20 crore will be inadequate to meet the requirements of the scheme taking into account the expenditure trend of 2021-22 and the targets set forth by the Department for 2022-23. The Committee in its report has asked the concerned department
closely monitor the scheme and if required, seek additional allocation at revised estimates stage to ensure that implementation of the scheme does not suffer due to a shortage of funds.

The Federation of Industry and Commerce of the North Eastern Region, the apex industry association of the Northeast said there is a dire need for having an investment policy for the region to leapfrog development in the region. It said they are looking for a stable policy and must be effective from April 1.