Guidelines for Funding under Scheme for promotion of Industrialisation in North East (SPINE)

Small scale and tiny sector Industries as defined by Govt. of India and Term Funding Institution which can have substantial economic and social impact the reason after implementation shall be given due consideration for part funding under this scheme. However, linkage with a commercial bank for working capital and term loan requirement is a must. The merit of the schemes will be judged by the NEC primarily upon the following guidelines :      

Project to be implemented should be a SSI/ Tiny/ Micro enterprise of which the cost of plants and machinery should not exceed Rs. 500.00 lakhs by way of project cost with accent on employment generation.

Projects based on locally available raw materials or which can be purchased easily with minimum transportation cost shall be given priority.

Projects which may lead to substitution of products imported from outsides the region shall be encouraged.

NEC will subsidies 25% of the project cost or Rs. 50.00 lakhs whichever is less subject to a maximum limit of Rs. 50.00 lakhs and as deem proper by the recommending authority subject to following :

(i)

For the purpose of calculating the amount of subsidy eligible the following shall be taken into consideration

(a) Land (b) Cost of building (c) Cost of Plant and machinery (d) Cost of miscellaneous fixed assets (e) Where the total cost of project is below Rs.25.00 lakhs, the preliminary and preoperative costs.  

(ii)

All sanctions and also the amount sanctioned will be subject to the availability of funds with the NEC for the purpose.

If the North Eastern Council/ Financial Institutions concerned is satisfied that the subsidy or grant to a Beneficiary has been obtained by misrepresentation as a result of which the project goes out of business/ closes production/ ceases functioning within 5(five) years of commencement of business, the NEC through its duly constituted officers reserves the right to take such remedial measures as it may deem fit including the refund of the grant of subsidy sanctioned, after giving the beneficiary an opportunity to be heard.

A beneficiary may not change the location of the unit without obtaining prior permission of the NEC.

The beneficiary would be required to obtain prior permission of the duly constituted authority of the Council to sell, mortgage, pledge, hypothecate or in any way alienate asstes created from the proceeds of the subsidy granted.

Representative of NEC shall be allowed full access to the business premises/factory of such units which have availed of subsidy under the scheme for inspection.

The working capital component of the project will not be included in the calculation for NEC's assistance under any circumstances.

Assistance to the extent indicated under point 4 above will be given only to those projects to which any scheduled commercial bank, RRBs. All India Financial Institutions, NEDFi, State Financial Institutions including Apex State Co-Operative Bank has agreed in principal to offer working capital finance and/or the short fall of the project cost.

NECs share of  fund will be made available to the entrepreneur through the particular branch or the bank by cheque. 

In accordance with the current policy decision of the Govt. of India, funding under the tiny sector, SSI units & may be restricted to private sector enterprises only.

In all proposals, share of the promoters must be indicated. 

Fund utilisation certificates must be produced twice in a year by the entrepreneur/ enterprise to the NEC until the project becomes operational.

NEC officials monitor/evaluate the projects sanctioned under this scheme as per existing practice.

Wide publicity should be given to the NEC and state Government. 

The projects for assistance under the scheme should reach NEC through the line Department, indicating viability of the project and through the Planning and Development Department of the state with proper recommendation and also with sanctioning letter of the financial institutions providing loan etc.

Technical consultancy Agencies like IIE, NEITOO, NECON and NSIIIC etc. may be engaged on consultancy basis for appraisal of project proposals and for evaluation and monitoring of implementation of projects.

Consolidated Tourism promotion Scheme may be formulated as a part of the Industrial Promotion programme keeping in view the ground situations in the constituent states. Norms for funding may be decided separately.

An illustrative but not exhaustive, activities which may be supported under the scheme are provided below :

Food Products : Apple, Jam, Orange, Juice, Carbonated soft drink, tomato sauce and vinegar etc. 

Agro Forest and Animal Based products : Citronella oil, coir rope, leaf plate and bowl, mustard oil, sesame oil, turpentine, bought leaf tea factory etc.

Paper products and Stationeries : Ball point pen refill, gem clip, chalk, crayon, staple pin, type writer ribbon, hand made paper etc.

Rubber and polymer : Blow molded plastic products, Hawai chappal, plastic comb and rubber based products etc.

Chemicals : Hydrated lime, phenyl, Sodium silicate and washing soap, distilled water, mineral water, demand based chemicals for the tea industry etc.

Machinery and metal tools : Barbed wire, steel fabrication unit, wire netting etc.

Medical Products : Ampicillin capsulling unit, bandage, paracetamol tabletting unit, ayurvedic/ medicinal plant products etc. 

Miscellaneous : Coal briquetting unit incense stick, shoe polish, tooth paste and water filter, candle demand based items for the tea (e.g. chemicals etc.) Industry and ancillary/ down stream units of tea/ oil/ petrochemicals projects, leather based products and mineral based industries etc.