The Indian Cabinet has given its approval for an additional financial outlay of Rs. 1164.53 crore for the Industrial Development Scheme (IDS), 2017, which was initially budgeted at Rs. 131.90 crore for Himachal Pradesh and Uttarakhand. The IDS, 2017 was launched in 2018 to promote industrial development in these states. The additional funds will cater to committed liabilities until 2028-29. Under this scheme, new and existing industrial units in manufacturing and service sectors will benefit from incentives such as Central Capital Investment Incentive for Access to Credit (CCIIAC) and Central Comprehensive Insurance Incentive (CCII).
Facts/Terms for UPSC Prelims
- Industrial Development Scheme (IDS), 2017: A government initiative aimed at fostering industrial growth in Himachal Pradesh and Uttarakhand by providing financial incentives and support to new and existing industrial units.
- Central Capital Investment Incentive for Access to Credit (CCIIAC): A scheme that offers a 30% investment incentive for plant and machinery to eligible industrial units in the manufacturing and service sectors, with a maximum limit of Rs. 5.00 crore.
- Central Comprehensive Insurance Incentive (CCII): An incentive program that reimburses 100% of insurance premiums for building and plant & machinery to eligible industrial units, both new and existing, during the initial 5 years of commercial production or operation.
- Committed Liabilities: Financial obligations that a government or organization has already committed to and must fulfill in the future, such as payments and expenditures required under specific schemes or projects.