UNNATI Scheme: Government Approves Rs 10,037 Crore for Northeastern States Industrial Growth

In a significant move to boost industrial development and generate employment opportunities in the northeastern region of India, the government has approved a new industrial development scheme called the Uttar Poorva Transformative Industrialization UNNATI Scheme, 2024. The scheme, which was approved by the Union Cabinet chaired by Prime Minister Narendra Modi, has a financial outlay of Rs 10,037 crore and will be effective from the date of notification until March 31, 2034, with an additional eight years of committed liabilities.

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Scheme Details

The UNNATI Scheme is designed to provide incentives to investors for setting up new industrial units or undertaking significant expansions of existing units in the eight northeastern states. The scheme is divided into two parts: Part A, which caters to incentives for eligible units, and Part B, which covers implementation and institutional arrangements for the scheme.

Incentives Offered

The scheme offers a range of incentives to eligible industrial units, including capital investment incentives, central capital interest subvention for both new and expanding units, and manufacturing and services-linked incentives for new units linked to the net payment of GST. The maximum eligible benefits to one unit from all components of the scheme are capped at Rs 250 crore.

Employment Generation

The UNNATI Scheme is expected to generate significant employment opportunities in the northeastern region. It is anticipated that around 83,000 direct employment opportunities will be created during the scheme period, with a substantial number of indirect employment opportunities also expected.

Application and Implementation

Industrial units can apply for registration under the scheme from the date of notification until March 31, 2026. All applications for registration must be disposed of by March 31, 2027. Eligible industrial units must commence their production or operation within four years from the grant of registration.

Implementation Structure

The Department for Promotion of Industry and Internal Trade (DPIIT) will implement the UNNATI Scheme in cooperation with the northeastern states. Three committees at the national and state levels will oversee the implementation of the scheme: the Steering Committee, the State Level Committee, and the Secretary Level Committee.

The UNNATI Scheme is a significant initiative by the government to accelerate industrial development and create employment opportunities in the northeastern region of India. By providing incentives and support to investors, the scheme aims to transform the region's industrial landscape and contribute to its overall economic growth and prosperity.