Transport Subsidy Scheme (TSS)

Transport Subsidy Scheme (TSS) - Context

To establish the transit and transportation in hilly, mountainous area located in remote and less-accessible region. The incentives under the scheme shall be provide to following states. To facilitate the process of industrialization in hilly, remote and inaccessible areas** , transport incentive is provided to the following states.

Transport Subsidy Scheme (TSS)

  1. Entire North East region under NEIDS (2017).
  2. Jammu and Kashmir under IDS (2017).
  3. Island of Lakshadweep and Andaman & Nicobar under LANIDS (2018).

Eligible Industrial Units can avail Incentives of scheme It is designed in the sense for eligible industrial units to take benefits of the scheme. Under this Industrial units can transport goods (only finished goods and raw material) Railway, Waterways or Airline (including shipping to Lakshadweep and Andaman & Nicobar island). This scheme can be availed for the period of five years from the inception of product/operations.

Freight Subsidy Scheme (FSS)

  • The Transport Subsidy Scheme (1971) was replaced by tbe Freight Subsidy Scheme (FSS - 2013).
  • It operation benefited Himachal Pradesh, Uttarakhand, Jammu & Kashmir, Darjeeling, Andaman & Nicobar, Lakshadweep an eight North Eastern States.
  • FSS was dismantled on 22nd November 2016. However all industrial units that benefited under FSS still are made eligible to get benefit under the scheme.
  • This scheme is not available for the state of Chhattisgarh.

Background of the Scheme

  1. About Transport Subsidy Scheme: Union Government of India had initiated the inception of Transport Subsidy Scheme (TSS) on 23rd July 1971 in the remote areas and location accessible to industrialization.
  2. Objectives/Aim of the Scheme: The primary aim or subtle objective is to industrialize the remote location (hilly and mountainous area) of India (mostly in to eight North Eastern Region).
  3. Agency Responsible for the Deployment: The objective implementation of TSS or manifestation of TSS was carried by the Department of Industrial Policy and Promotion.

Monitoring and Review Mechanism for the Scheme**

In order to check any malpractice or employment of monopoly, the Directorates of Industries in each respective beneficiary State and Union Territories are expected to:

  • Periodically check for if subsidy is used for the intended purpose (i.e. finished goods/raw materials).
  • To implement policies and mechanism for inspection of claims by industrial units and regular payment of the claims.
  • Lay groundwork for pre-registration and indicate the accommodation capacity of these benefiting units during the registration.
  • Create a system of Information, and regular updates of this information in regards to raw material and finished goods.
  • Implementation of policies that keep track of production and consumption (preferably utilization).

Important Links (External)

  1. Transport Subsidy Scheme - PIB.
  2. Department for Promotional of Industry and Internal Trade.
  3. Transport Subsidy Scheme, 1971 - PDF file.
  4. Transport Subsidy Scheme - Development Commissioner (MSME).

Post a Comment

Should you need any further information, please do not hesitate to contact us.

Previous Post Next Post