Union Cabinet Approved Uttar Poorva Transformative Industrialization Scheme, 2024

The Union Cabinet, led by Prime Minister Shri Narendra Modi, has sanctioned the Uttar Poorva Transformative Industrialization Scheme, 2024 (UNNATI – 2024). This scheme, spearheaded by the Ministry of Commerce and Industry, aims to invigorate industrial development in the North East Region, fostering economic growth and job creation.

Salient Features

Scheme Period:

• Effective from the date of Notification until 31.03.2034, with an additional 8 years for committed liabilities.

Application Period:

• Industrial units can apply for registration from the notification date until 31.03.2026.

Registration Grant:

• All registration applications to be processed by 31.03.2027.

Production Commencement:

• Eligible units must commence production or operation within 4 years of registration.

Zone Categorization:

• Districts categorized into Zone A (Industrially Advanced) and Zone B (Industrially Backward).

Earmarking of Funds:

• 60% of Part A outlay allocated to 8 NE states; remaining 40% on FIFO basis.

Incentives

1. Capital Investment Incentive:

• • Zone A: 30% (up to Rs. 5 Cr) or 50% (up to Rs. 7.5 Cr) of investment.
  • Zone B: 30% (up to Rs. 10 Cr) or 50% (up to Rs. 10 Cr) of investment.

2. Central Capital Interest Subvention:

• • Zone A: 3% for 7 years.
  • Zone B: 5% for 7 years.

3. Manufacturing & Services Linked Incentive (MSLI):

• • For new units in Zone A: Up to 75% of investment in P&M.
  • Nil for areas where GST is not applicable.

Expenditure

• Total outlay of Rs. 10,037 crore for 10 years, with an additional Rs. 300 crore for implementation and institutional arrangements.

Targets

• Approximately 2180 applications expected, generating around 83,000 direct employment opportunities during the scheme period, alongside significant indirect employment.

Background

The UNNATI scheme aims to spur industrial growth in the North East, fostering socio-economic development and creating a conducive environment for manufacturing and services sectors. Its primary objective is to stimulate employment generation, thereby uplifting the region’s overall economic landscape.