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Government of India
Ministry of Commerce & Industry
07 JAN 2019 3:16PM by PIB Delhi
Transport Subsidy Scheme

In order to facilitate the process of industrialization in hilly, remote and inaccessible areas, transport incentive is provided to the states of North Eastern Region (including Sikkim) under North Eastern Industrial Development Scheme (NEIDS) - 2017, Jammu & Kashmir under Industrial Development Scheme - 2017 and Lakshadweep and A&N Islands under Lakshadweep and Andaman & Nicobar Island Development Scheme - 2018. Under these schemes, all eligible industrial units can avail incentive on transportation of only finished goods through Railways or the Railway Public Sector Undertakings, Inland Waterways or scheduled airline (shipping for Andaman & Nicobar and Lakshadweep islands also) for a period of five years from the date of commencement of commercial production / operation.

 

The Freight Subsidy Scheme (FSS), 2013, whichreplaced the Transport Subsidy Scheme, 1971, was in operation in all 8 States of North Eastern Region, Himachal Pradesh, Uttarakhand, J&K, Darjeeling District of West Bengal, Andaman &Nicobar Islands and Lakshadweep islands. The Freight Subsidy Scheme (FSS), 2013 has been discontinued with effect from 22.11.2016. However, the industrial units registered under these schemes during their currency, are eligible for the benefits of the scheme for the period specified therein.

 

While the inland transport incentive is available for certain landlocked states, there is no proposal to provide the same to the state of Chhattisgarh.

 

The state-wise and year-wise amount of money released to different states and the amount utilized by them under the Transport Subsidy Scheme (TSS),1971 and Freight Subsidy Scheme (FSS), 2013 during the last three years and the current year is given below:

 

A. Scheme: Transport Subsidy Scheme, 1971

(Rs. in crore)

State

 2015-16

 2016-17

 2017-18

 2018-19 (upto 02.01.2019)

 Amount
released

 Amount
utilized

 Amount
released

 Amount
utilized

 Amount
released

 Amount
utilized

 Amount
released

 Amount
utilized

Arunachal Pradesh

          -  

          -  

          -  

          -  

     44.88

    44.88

     44.55

      35.17

Assam

     33.37

    31.56

     43.68

     43.65

   376.14

  371.91

   262.25

    239.95

Manipur

          -  

          -  

       2.02

       2.02

     20.24

    20.24

          -  

              -  

Meghalaya

     27.01

    27.01

       5.14

       5.14

   125.36

  125.36

   126.25

    124.03

Mizoram

          -  

          -  

          -  

          -  

       1.74

      1.74

          -  

              -  

Nagaland

          -  

          -  

          -  

          -  

          -  

          -  

          -  

              -  

Sikkim

          -  

          -  

          -  

          -  

          -  

          -  

          -  

              -  

Tripura

       0.17

      0.17

       0.32

       0.32

          -  

          -  

       0.01

        0.01

Himachal Pradesh

          -  

          -  

          -  

          -  

     17.12

    17.12

     94.67

      12.07

Jammu and Kashmir

          -  

          -  

          -  

          -  

          -  

          -  

          -  

                  -  

Uttrakhand

          -  

          -  

          -  

          -  

          -  

          -  

          -  

              -  

Lakshadweep

          -  

          -  

          -  

          -  

          -  

          -  

          -  

              -  

Andaman and Nicobar

          -  

          -  

          -  

          -  

          -  

          -  

          -  

              -  

Total

     60.55

    58.74

     51.16

     51.13

   585.48

  581.25

   527.73

    411.23

                 

 

B. Scheme: Freight Subsidy Scheme, 2013

(Rs. in crore)

State

 2015-16

 2016-17

 2017-18

 2018-19 (upto 02.01.2019)

 Amount
released

 Amount
utilized

 Amount
released

 Amount
utilized

 Amount
released

 Amount
utilized

 Amount
released

 Amount
utilized

Arunachal Pradesh

          -  

          -  

          -  

          -  

          -  

          -  

-

-

Assam

          -  

          -  

          -  

          -  

          -  

          -  

       1.84

1.82

Manipur

          -  

          -  

          -  

          -  

          -  

          -  

-

-

Meghalaya

          -  

          -  

     18.56

     18.56

       5.49

       5.49

   106.29

      106.29

Mizoram

          -  

          -  

          -  

          -  

       9.56

       9.56

          -  

-  

Nagaland

          -  

          -  

          -  

          -  

          -  

          -  

          -  

-  

Sikkim

          -  

          -  

          -  

          -  

          -  

          -  

          -  

-  

Tripura

       0.01

       0.01

       0.28

       0.28

       0.37

       0.30

 

 

Himachal Pradesh

          -  

          -  

          -  

          -  

          -  

          -  

          -  

                  -  

Jammu and Kashmir

          -  

          -  

          -  

          -  

          -  

          -  

          -  

-  

Uttrakhand

          -  

          -  

          -  

          -  

          -  

          -  

          -  

                  -  

Lakshadweep

          -  

          -  

          -  

          -  

          -  

          -  

          -  

-  

Andaman and Nicobar

          -  

          -  

          -  

          -  

       0.58

       0.58

          -  

-  

Total

       0.01

       0.01

     18.84

     18.84

     16.00

     15.93

   108.13

108.11

 

 

This information was given by the Minister of State of Commerce and Industry, C. R. Chaudhary, in a written reply in the Lok Sabha today.

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MM/SB