The Cabinet Committee on Economic Affairs has approved the Modified Industrial Infrastructure Upgradation Scheme (MIIUS) with an approved outlay of Rs.1030 crore for the 12th Five Year Plan period consisting of Rs. 450 crore for committed liability and the remaining Rs. 580 crore for taking up 14 to16 new projects including a minimum 2 projects in the North Eastern Region (NER) for upgradation of infrastructure in existing or greenfield industrial clusters.

The CCEA further approved that at least 10 percent outlay will be set aside for the minimum two projects in the NER.

All States are covered under the scheme. However projects are likely to be undertaken in only 14 to 16 States/Districts due to limitation of outlay in the 12th Plan.

After notification of the MIIUS, the Project Management Agency (PMA) would be appointed. The PMA will assist the Department of Industrial Policy & Promotion (DIPP) in appraisal of project proposals and also, in monitoring of projects. Project proposals would be invited through advertisements in two national dailies; the proposals received would be scrutinized with the help of the PMA and these would be brought before Apex Committee for 'in-principle' approval.

Monitoring of projects would start after 'in-principle' approval so that these achieve stipulated milestones according MIIUS, to qualify for 'final approval'. Monitoring of projects would continue till these projects achieve completion. These projects are targeted to achieve completion by the end of the 12th Plan.

The decision will have to develop of better common infrastructure, common facilities including skill development centers at the selected industrial clusters. It will also positively impact better employment generation in the selected clusters.

Background:

The IIUS was launched in 2003 as a Central Sector Scheme to enhance competitiveness of industry by providing quality infrastructure through a public private partnership in selected functional clusters with central assistance upto 75 percent of the project cost subject to a ceiling of Rs. 5 crore. The Scheme was recast in February, 2009 based on the recommendation of an independent evaluation. Central assistance was retained upto 75 percent and assistance upto 90 percent of the project cost introduced for NER/Hill States with a maximum ceiling of Rs. 60 crore (with 15 percent minimum industry contribution and 5 percent in case of NER/Hill States).