The Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, has given its approval for the Uttar Poorva Transformative Industrialization Scheme, 2024 (UNNATI – 2024). This scheme, proposed by the Ministry of Commerce and Industry, Department for Promotion of Industry and Internal Trade, is set to run for a period of 10 years from the date of notification, with an additional 8 years for committed liabilities. The total cost of the scheme is Rs.10,037 crore.
Incentives Under the Scheme
Investors setting up new units or undertaking significant expansion of existing units can avail the following incentives under the scheme:
- Capital Investment Incentive (For Both New & Expanding Units): Depending on whether GST is applicable or not, the eligible value of investment in plant and machinery / construction of building & durable physical assets can have a cap of Rs. 5Cr to Rs. 10 Cr in Zone A and Rs. 7.5 Cr to Rs. 10 Cr in Zone B.
- Central Capital Interest Subvention (For Both New & Expanding Units): Both Zone A and Zone B offer 3% and 5% interest subvention respectively for 7 years.
- Manufacturing & Services linked incentive (MSLI) – For New Units only: This is linked to Net Payment of GST, i.e., GST paid less Input Tax Credit with an upper limit of 75% to 100% of eligible value of investment in P&M depending on the zone.
The maximum eligible benefits to one unit from all components of the scheme is Rs. 250 Cr.
Scheme Implementation and Targets
The scheme is expected to receive approximately 2180 applications, and it is anticipated that direct employment opportunities of about 83,000 will be generated during the scheme period. A significant number of indirect employment is also expected to be generated.
The scheme will be implemented by DPIIT in cooperation with the states. Implementation will be overseen by committees at the national and state levels.
Background
The Government of India has formulated the UNNATI (Uttar Poorva Transformative Industrialization Scheme), 2024 as a Central Sector Scheme for the development of Industries and generation of employment in the states of North East Region. The scheme’s main objective is to generate gainful employment, which will lead to the area’s overall socio-economic development. It will create productive economic activity in the manufacturing and service sectors.
Industrial development in the NER needs to be given a fresh thrust with emphasis on job creation, skill development, and sustainable development by attracting new investments and nurturing existing ones. However, to maintain a proper balance between the industrial growth and pristine environment of the NER, certain industries are kept in positive list such as Renewable energy, EV charging stations etc and there is a Negative list for certain sectors which may hamper the environment such as cement, plastic etc.