UNNATI 2024 | 18 Mar 2024

Source: PIB

Why in News?

The Union Cabinet has approved the Uttar Poorva Transformative Industrialization Scheme (UNNATI), 2024 to foster industrial growth and employment generation in the northeastern region.

What is UNNATI 2024?

• Objective:
  • It is aimed at developing industries and generating employment in the Northeast region.
  • It focuses on attracting new investments, nurturing existing ones, and promoting industries like renewable energy and Electric Vehicle charging stations while restricting environmentally harmful sectors such as cement and plastic.
• Salient Features:
  • Scheme Period: Effective from the date of Notification until 31.03.2034, with 8 years of committed liabilities.
    • The scheme's total cost is Rs. 10,037 crore, covering a 10-year period with an additional 8 years for committed liabilities.
  • Commencement of Production: All eligible Industrial Units to commence their production or operation within 4 years from the grant of registration.
  • Zone Classification: Districts are categorised into Zone A (Industrially Advanced) and Zone B (Industrially Backward) for incentives.
  • Funds Allocation: 60% of Part A outlay earmarked for 8 North Eastern states and 40% allocated on a First-In-First-Out (FIFO) basis.
• Incentives for Investors: The scheme offers various incentives to investors for setting up new units or expanding existing ones, categorised based on GST applicability, like:
  • Capital Investment Incentive
  • Central Capital Interest Subvention
  • Manufacturing & Services linked incentive (MSLI) for new units linked to Net Payment of GST, with upper limits based on zones.
• Implementation Strategy: The Department for Promotion of Industry and Internal Trade (DPIIT) will implement the scheme in collaboration with states, overseen by national and state-level committees.