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Cabinet approves GST-linked budgetary support for Kashmir, Uttarakhand, Himachal Pradesh, north eastern states


New Delhi [India], Aug.16 (ANI): The Cabinet Committee on Economic Affairs (CCEA) today gave its approval to providing budgetary upport under the Goods and Service Tax (GST) regime for the eligible industrial units located in Jammu and Kashmir, Uttarakhand, Himachal Pradesh and North Eastern States, including Sikkim.

Budgetary support of Rs. 27,413 crore was approved for the period 1.7.2017 to 31.03.2027 for such industrial units located in these states which availed the benefit of Central Excise exemption prior to coming into force of the GST regime.

The Government of India was implementing North East Industrial and Investment Promotion Policy (NEIIPP), 2007 for North Eastern States, including Sikkim and Package for Special Category States for Jammu & Kashmir, Uttarakhand and Himachal Pradesh to promote industrialization. One of the benefits of the NEIIPP, 2007 and Package for Special Category States was excise duty exemption for first 10 years after commencement of commercial production.

Upon repeal of the Central Excise duty laws, the Government has decided to pay a budgetary support equal to the central share of the cash component of CGST and IGST paid by the affected eligible industrial units. The support shall be available for the residual period (ten years from the date of the commercial production) in the States of North Eastern region and Himalayan States. DIPP will notify the Scheme, including detailed operational guidelines for implementation of the scheme within 6 weeks.

It is estimated that total number of 4284 eligible units located in these states will benefit from the above scheme.

In a related development, the CCEA approved closure of Andaman and Nicobar Islands Forest and Plantation Development Corporation Limited (ANIFPDCL) in Port Blair

The closure will help to stop unproductive loans to ANIFPDCL from Gol and would enable a more productive utilization of assets.

This would be achieved by offering Voluntary Retirement Scheme (VRS) / Voluntary Separation Scheme (VSS) package to willing employees and by retrenchment under Industrial Disputes Act, 1947 of those not opting for VRS/VSS including settlement of other liabilities, if any.

At present, there are 836 employees on the rolls of the corporation.

The closure will be done by infusing funds in the following manner:

•    Infusion of funds of Rs. 125.72 crore through budgetary support from Gol for funding VSS of all employees on 2007 notional pay scales and for discharging other liabilities.

•    Write-off of Gol loans of Rs. 186.83 crore given to ANIFPDCL and accrued interest of Rs 185.18 crore with freezing of interest as on 31.03.2017 after closure of the Corporation.

•    Auction of movable assets (Plant & machinery, electrical equipment, vehicles & office equipment, furniture & fixture, elephant & livestock, plantation & other inventories etc.) of ANIFPDCL through Metal Scrap Trading Corporation Ltd. (MSTC Ltd),

•    Ministry of Environment Forests and Climate Change (MoEF&CC) will transfer/sale of immovable assets i.e. land and /or buildings of ANIFPDCL through NBCC Ltd. (ANI)


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