UNNATI (Uttar Poorva Transformative Industrialization Scheme)

✦Key Features

• Budget: ₹10,037 crore over 10 years (2024-2034)
• Zone A (hilly: Arunachal, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Ladakh, A&N): 90% capital subsidy
• Zone B (Assam, J&K): 60% capital subsidy on eligible investment
• Covers manufacturing + specified services
• Replaces NEIDS 2017; additional 3-5% employment bonus for local workers
• Cabinet approved July 2024; investments from FY2024-25

✓Eligibility Criteria

• New industrial units and existing units undergoing substantial expansion located in the North Eastern Region of India.
• Units must be engaged in manufacturing or specified service sectors as defined in the scheme guidelines.
• Industrial units must have a valid registration under the Goods and Services Tax (GST) Act.
• Units must meet the minimum investment criteria in plant and machinery as specified for different categories of districts.

★Benefits

• Capital Investment Incentive is provided at rates of 30% to 50% of the investment in plant and machinery depending on the zone.
• Central Capital Interest Subvention is offered at 3% to 5% for a period of seven years on loans taken for working capital.
• Manufacturing units are eligible for a Manufacturing and Service Incentive based on their net GST paid.
• The scheme provides a dedicated package to promote industrial growth and employment in the eight North Eastern States.

▶Application Process

• Eligible industrial units must register themselves on the dedicated UNNATI web portal managed by the DPIIT.
• Units must submit an application for registration before the commencement of commercial production to be eligible for incentives.
• The application undergoes a multi-tier review process by the State Level Committee and the Empowered Committee.
• Upon approval of registration, the unit submits claims for specific incentives like Capital Investment or Interest Subvention through the portal.

₹ Budget Allocation

10037

Funding Ratio (Centre:State): 100% Central Sector Scheme (Central Govt Outlay)

Historical Context

Notified in March 2024 to replace the North East Industrial Development Scheme (NEIDS) 2017, which expired in March 2022. It aims to generate 83,000 direct jobs.

Challenges

• Infrastructure deficit in high-altitude/remote zones.
• High cost of logistics and raw material transport.
• Skilled manpower shortage in the NER.
• Land acquisition challenges in tribal areas.

Reforms & Recommendations

• Creating specialized industrial parks for electronics and medicinal plants.
• Linking UNNATI incentives with the 'One District One Product' (ODOP) initiative.
• Setting up more skill development centers specifically for the service sector in NER.

Performance Statistics

SDG Linkages

Constitutional Backing

Technology Used

Key Takeaways

• Capital Investment Incentive (30% to 50% based on zones).
• Interest Subvention (3% for 7 years).
• Manufacturing and Services sectors both eligible.
• 10-year implementation period (2024-2034).

Convergence Schemes

• PM Gati Shakti National Master Plan
• Bharatmala Pariyojana
• PM-DevINE (Prime Minister’s Development Initiative for North East Region)

Sector Tags