Transport Subsidy Scheme

Organisation

Department of Industrial Policy & Promotion

Objective

The Scheme was introduced to develop industrialization in the remote, hilly and inaccessible areas by providing for subsidy in the transportation cost incurred by the industrial units so that they could stand competition with other similar industries, which are geographically located in better areas.

Eligibility

The Scheme is applicable to all industrial units (barring plantations, refineries and power generating units both in public and private sectors irrespective of their size)

Brief

Subsidy ranging between 50% and 90% of the transport cost for transportation of raw material and finished goods to and from the location of the unit and the designated rail-head. (For North East States, J&K and UTs, the subsidy is 90%.  For H.P. and Uttarkhand and Darjeeling District of West Bengal, the subsidy is 75%.  However, for movement of goods within NER, the subsidy is 50%.). The subsidy is eligible to a unit for a maximum period of five years from the date of commencement of commercial production.