Review of transport subsidy scheme

  • 30/04/2008

  • Assam Tribune (Guwahati)

In the wake of reports of widespread misuse of the Transport Subsidy Scheme, the Planning Commission is evaluating the scheme afresh. The Ministry of Commerce and Industry has clarified today, that it has not released Transport Subsidy Scheme during the current financial year. This fiscal, only Rs 1 crore has been earmarked under the scheme, pending its evaluation by the Planning Commission. This was revealed by Union Minister of State for Industry and Commerce, Ashwani Kumar in a Lok Sabha reply, on Tuesday. Last financial year, Rs 619.29 crore was sanctioned under the scheme. Of which the lion's share of Rs 595.63 crore went to the North Eastern States. "No release has been made so far in the current financial year under the scheme,' he added. The Centre had introduced the Transport Subsidy Scheme in 1971 to promote industrialisation of the remote, hilly and inaccessible areas. The scheme is applicable in 14 States including the eight North eastern States. Under the scheme, subsidy is provided ranging between 50-90 per cent of the transport cost on raw material and finished goods to and from the location of industrial units and the designated railhead.