TRANSPORT SUBSIDY SCHEME

Objectives of the Scheme and its applicability:

  The Scheme is aimed to promote industrialisation in hilly, remote and inaccessible areas of the country. The Scheme is applicable to all the industrial units (barring plantations, refineries and power generating units) irrespective of their size, both in public and private sector.

Under the Scheme, subsidy ranging between 50% to 90% is admissible on transportation cost incurred by an entrepreneur on the movement of raw materials and finished goods from the designated rail-head/ports upto the location of industrial units and vice-versa for a period of five years from the date of commencement of commercial production.

Duration of the Scheme:

The Scheme was introduced in July, 1971 and has been extended from time to time, and is now valid upto 31.3.2007.

Areas covered under the Scheme

The North-Eastern region comprising the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura, as well as Jammu and Kashmir, Himachal Pradesh, Sikkim, Andaman & Nicobar Islands and Lakshadweep, eight hill Districts of Uttaranchal (Almora, Chamoli, Dehradun, Nainital, Pauri Garhwal, Pithoragar, Tehri Garhwal and Uttar Kashi), and Darjeeling District of West Bengal.

Mode of disbursement:

The Scheme works on disbursement/reimbursement basis i.e. the subsidy claims are first scrutinised and disbursed by the State Government to the eligible units on the basis of the recommendations of State Level Committee and reimbursement thereof is claimed thereafter from the Central Government.

However, for the States in North Eastern region, North-Eastern Development Finance Corporation Ltd.(NEDFi) has been designated as the disbursing agency for payment of subsidy to eligible units on the basis of recommendations of the State Level Committee. NEDFi has come into operation from May, 2000.

 

For further details contact:

a) North Eastern Development Finance Corporation Ltd.(NEDFi),
IDBI Building, G.S. Road,
Guwahati -781005

(Tel:529202-206)

b)  Section Officer(DBA.II),
Department of Industrial Policy & Promotion,
Room No.457, Udyog Bhavan,
New Delhi-110011.