Context: The Union Cabinet have approved the new industrial development scheme, Uttar Poorva Transformative Industrialization Scheme, 2024 (UNNATI – 2024).

About Uttar Poorva Transformative Industrialization Scheme, 2024 (UNNATI)

• It is Central Sector Scheme.

• Objectives: To develop industries that will create productive economic activity in the manufacturing and service sectors.

• To generate gainful employment, which will lead to the area's overall socio-economic development.

• Focus areas: States of North East Region.

• Purpose: To boost the development of industries and employment in India’s North East Region, thereby aiding in socio-economic progress.

• Targeted Sectors: Manufacturing and service sectors are the primary focus, to invigorate economic activity and productivity.

• Incentives Offered: Incentives for investors to encourage the establishment of new industrial units or expansion of existing ones.

• Operational Duration: The scheme will be in effect until March 31, 2034, indicating a long-term commitment to the region’s development.

• Alignment with Economic Goals: The scheme is part of a strategic effort to integrate the North East Region’s economy with the national economic agenda, enhancing overall growth.

• Beneficiaries: Investors interested in starting new industrial ventures or expanding their current operations in the North East Region stand to gain from the scheme’s incentive structure.

• Nodal Agency: Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry

• Targets: Direct employment opportunities of about 83,000 and a significant number of indirect employment.

• Scheme period: 10 years from the date of notification and additional 8 years for committed liabilities.

• Eligibility: All new Industrial units and Expanding units for the respective incentives.

Financial Outlay – Rs.10, 037 crore.

• Part A: Incentives to the eligible units (Rs. 9737 crores), 60% to 8 NE states and 40% on First-In-First-Out (FIFO) basis.

• Part B: For implementation and institutional arrangements for the scheme (Rs. 300 Crore).

• Maximum Eligible benefits to one unit from all components of the scheme is Rs. 250 Cr.

Districts are categorized in 2 zones

• Zone A (Industrially Advanced Districts)

• Zone B (Industrially Backward Districts)

Incentives under UNNATI-2024

Capital Investment Incentive

• For both new & expanding units.

• For both GST and non-GST units

Central Capital Interest Subvention

• For both new & expanding units.

• For both GST and non-GST units

Manufacturing & Services linked incentive (MSLI)

• For New Units only

• For units linked to Net Payment of GST