Transport Subsidy Scheme

INTRODUCTION

 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.
 The scheme came into effect from July 15,1971 and shall remain operational till March 31, 2007
for the NE region.
 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.

 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.
 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.
 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

 Industrial units located in the NE region in respect of raw material brought into and finished goods
taken out of the region.
 Not eligible for the internal movements of goods within the states.
 Transport costs comprises the movement from Siliguri to the nearest Railway Station and
thereafter by road up to the factory site and vice-versa.
 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.
 Cost of loading and unloading and other handling charges shall not be included in transport cost.

AMOUNT OF ADMISSIBLE SUBSIDY

 @ 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.
 @ 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.
 @ 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.