Question : AGRO AND RURAL INDUSTRIES IN NORTH EASTERN REGION

(a) whether the Union Government have plans to set up adequate number of Agro and Rural Industries in the North-Eastern region including Bodoland Territory in Assam under Non-Lapsable Central Pool Resource so as to create job/employment opportunities for the unemployed youths and to boost the economy in the entire region;

(b) if so, the details thereof and the steps taken in this regard so far;

(c) total number of such industries set up in the North-Eastern region and the total fund spent for the same so far;

(d) if not, the reasons therefor;

(e) whether the Union Government have a policy approach to accord exemption from the payment of taxes to the Agro and Rural Industries set up in North-Eastern Region;

(f) if so, the details thereof and the steps taken so far in this regard; and

(g) if not, the reasons therefor?

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF AGRO AND RURAL INDUSTRIES ( SHRI SANGH PRIYA GAUTAM ) >

(a) to (g): A Statement is laid on the Table of the House.

STATEMENT REFERRED TO IN THE REPLY TO PART (a) TO (g) IN RESPECT OF THE LOK SABHA STARRED QUESTION NO. 20 FOR REPLY ON 2nd DECEMBER, 2003

(a) & (b): The Government through Khadi and Village Industries Commission (KVIC) is already implementing the Rural Employment Generation Programme (REGP) in the North-Eastern Region including Bodoland Territory in Assam to promote new entrepreneurs for setting up Agro and Rural Industries by way of providing margin money etc so as to create job/employment opportunities. Under this Scheme, margin money assistance is provided at the rate of 30% of the project cost upto Rs. 10 lakhs and for the project above Rs. 10 lakhs and upto Rs. 25 lakhs, rate of margin money is 30% of Rs. 10 lakhs plus 10% on remaining cost of the project. Under the scheme, the beneficiary`s contribution is 5% of the project cost. The implementation of the Scheme is being financed through Public Sector Banks, Regional Rural Banks, State Cooperative Banks, etc.

(c): Under the REGP Scheme, a total number of 11085 units have been set up in the North-Eastern Region as on 30.06.2003, with an investment of Rs. 6173.54 lakhs as margin money from KVIC and Rs. 24694.03 lakhs as bank loan. During 2002-03 and 2003-04 (upto October, 2003), 66 units with Rs. 12.62 lakhs margin money having project cost of Rs. 42.62 lakhs have been established in the Bodoland region.

(d): Does not arise.

(e) & (f): The Union Government have imparted exemption of excise and income tax for all industries including agro and rural industries in the NE Region for 10 years as part of the fiscal incentives under the New Industrial Policy for NE Region announced in 1997.

(g): Does not arise.