RBI grade B
March 2024

Summary of the Uttar Poorva Transformative Industrialization (UNNATI) Scheme, 2024

Scheme Overview: The Union Cabinet has ratified the UNNATI Scheme for the North-East (N-E) region with a funding commitment of Rs 10,037 crore over a 10-year period, plus an additional 8 years to cover committed liabilities. The scheme, effective from the date of its notification, aims to propel socio-economic development through industrial growth and employment generation in the N-E region.

Duration and Financial Outlay:

  • Total Budget: Rs 10,037 crore.
  • Operational Period: From the date of notification until March 31, 2034, including 8 years of funding for committed liabilities.
  • Budget Allocation:
    • Part A (Incentives for Units): Rs 9,737 crore.
    • Part B (Implementation Costs): Rs 300 crore.

Objectives and Targets:

  • Primary Goal: To create 83,000 direct and numerous indirect employment opportunities via industrial expansion.
  • Applications: Anticipated to process approximately 2,180 applications from industrial units.
  • Eligibility Period for Applications: From notification date until March 31, 2026.
  • Processing Deadline for Applications: All to be processed by March 31, 2027.
  • Production Commencement: Within 4 years of registration.

Zonal Definitions and Funding:

  • Zones: Classified into Zone A (Industrially Advanced Districts) and Zone B (Industrially Backward Districts).
  • Funding Distribution:
    • 60% of Part A budget for the eight North-East states.
    • Remaining 40% allocated on a First-In-First-Out (FIFO) basis.

Implementation Agency:

  • Agency: Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, in collaboration with state governments.

Incentive Structure:

  1. Capital Investment Incentive:
    • With GST:
      • Zone A: 30% on investments up to Rs 5 crore.
      • Zone B: 50% on investments up to Rs 7.5 crore.
    • Without GST:
      • Zone A: 30% on investments up to Rs 10 crore.
      • Zone B: 50% on investments up to Rs 10 crore.
  1. Central Capital Interest Subvention:
    • Zone A: 3% interest subvention for 7 years.
    • Zone B: 5% interest subvention for 7 years.
  1. Manufacturing and Services Linked Incentive (For New Units, GST Mandatory):
    • Zone A: 75% of eligible investment value in Plant & Machinery (P&M).
    • Zone B: 100% of eligible investment value in P&M.

The UNNATI scheme is designed to boost the industrial framework in the North-East region, encouraging substantial economic and employment growth through strategic financial incentives and supportive policies. This initiative not only aims to balance industrial disparity within the regions but also to enhance the overall developmental pace of the North-Eastern states.

Share This Article