The Industrial Infrastructure Upgradation Scheme (IIUS) was established in 2003 to boost industrial standards by improving start-up infrastructure through Public-Private Partnership (PPP). During the 10th and 11th plans, the initiative was redesigned and expanded to provide aid and support for technology up-gradation for new companies. The scheme approved a total of Rs.2549 crores in support of 39 projects. The National Productivity Council (NPC) evaluated productivity and extended the Modified Industrial Infrastructure Upgradation Scheme (MIIUS) during the 12th year plan with an allocation of Rs.1,030 crores based on performance.
The Modified Industrial Infrastructure Upgradation Scheme (MIIUS) attempts to achieve the following goals:
- to boost industry competitiveness by providing high-quality infrastructure
- to promote and accelerate industrial expansion
- to provide technological advancement and
- to develop new job opportunities
The Scheme addresses the fundamental need-based components, which are assessed by a diagnostic investigation. The following are the eligible components that are eligible for assistance:
- Infrastructure Physical
- Management of Solid Waste Treatment and disposal
- Water Supply
- Captive Power Plant
- Social Infrastructure
- Working Women’s Hostels
- Technical Infrastructure
- Common Facility Centres (CFCs)
- Other environmental infrastructure
- Research and Development in Training Infrastructure – Product Development and Technical Demonstration
- Certification of Facility Quality
The Cabinet Committee on Economic Affairs (CCEA) has approved a total of Rs.1030 crores for the scheme, with the funds allocated being spent as follows:
- 450 crores for committed expenses for projects already started during the tenth and eleventh five-year plans.
- 580 crores for the start-up of new projects, with a limit of one per state.
- 10% of the total cash is set aside for projects in the North Eastern Region (NER) and Sikkim.
The scheme’s allocation pattern is as follows:
- The Central Government contributes 50% of the entire project cost of Rs. 50 crores, whichever is less.
- The State Implementing Agencies (SIAs) provide 25% of the total project cost, while recipient industries and other financial institutions contribute the remaining 25% grant.
- The central government has set up 1.25 crores for the improvement of physical infrastructure.
- 5 per cent of the money is given to improve the industry monitoring mechanism and to cover administrative costs.
The fund is distributed to the SIAs in three instalments by the Ministry of Commerce and Industry:
- The Ministry releases the first instalment of 30% after ascertaining that the SIA and industry have already received their 30% contribution in their Trust & Retention Account (TRA)
- After using 22.5 per cent of the project cost and certifying that the SIA and other stakeholders received 70 per cent of their authorised contribution in their registered bank account, the second instalment of 40 per cent of the permitted fund is issued to the agency.
- The third instalment of 30% of the agreed grant is released after obtaining the utilisation certificate for the first instalment, exploitation of 52.5 per cent of the project cost, and verification that SIA and other stakeholders have received their entire approved contribution in their registered bank account.
- The scheme is open to SIAs such as State Industries Development Corporations (SIDC).
- Only agencies with prior expertise in managing and executing projects are eligible to apply for the scheme.
- Priority will be given to states that have implemented IIUS more effectively in the 10th and 11th Five Year Plans.