Guwahati: The Centre showed it means business in the Northeast by immediately notifying the Uttar Poorva Transformative Industrialization Scheme (UNNATI 2024) and has already called for registrations under the scheme.
This is unlike in the previous years when industrial policies in the Northeast took a long time to get notified after the policy was announced. The new industrial policy for Northeast christened UNNATI 2024 was launched on March 7, two years after the earlier policy NEIDS expired. There was a lot of criticism by parliamentary committees on the delay in announcing the industrial policy for the Northeast.
The notification released today says registrations for the Uttar Poorva Transformative Industrialization Scheme (UNNATI), 2024 have commenced from today. The policy will be effective from March 9, 2024, and will remain in force up to and inclusive of March 8, 2034, and 8 more years for meeting committed liabilities. All units willing to avail of incentive(s) under this scheme have to apply for registration through the online portal which was launched today.
All registration applications shall be disposed of by 30.09.2026 unless otherwise extended.
UNNATI, 2024 is designed to strengthen the Industrial Ecosystem in the North East and attract New Investment. The Scheme is divided into two parts i.e. Part A and Part B. Part A provides incentives to eligible new industrial units and those undergoing substantial expansion.
Part A will have three components: Capital Investment Incentive (CII), Central Interest Subvention (CIS), and Manufacturing & Services Linked Incentive (MSLI). Part B is for developing an industrial ecosystem through activities such as(i) Project Monitoring Unit (PMU) and Project Implementation Unit (PIU); (ii) Third Party Evaluation and Impact Assessment; and (iii) Portal Development (aligned with National Single Window System.
New units have to be registered under this scheme on or after March 9, 2024, but not later than September 30, 2026. Such a unit has to commence commercial production within 4 years from the date of grant of registration.
“The total benefits in NEIDS from all components of the scheme put together shall be limited to the total investment in plant and machinery subject to a maximum limit of Rs.200 crore per unit. In UNNATI it is 250 crores” Sandeep Khaitan, a director in FINER told EastMojo.
For the manufacturing sector, a unit registered under this scheme has to be on or after March 9, 2024, but not later than September 30, 2026. Such a unit has to commence commercial production within 4 years from the date of grant of registration.
Manufacturing sector units with a minimum investment of Rs. 1.0 crore in plant and machinery will be eligible for incentives under this scheme.
Service sector units with a minimum investment of Rs 50 lakh in building and other durable physical assets will be eligible for incentives under this scheme. The North-Eastern Development Financial Corporation Ltd. (NEDFi) will be the nodal agency for the disbursal of incentives under various components of the scheme. Chairman and Managing Director of NEDFI P V S L N Murty requested all entrepreneur fraternities to approach NEDFI for assistance so that more investment can be generated especially for Zone B areas.
The scheme divides the North East into two zones – Zone A for industrially advanced districts and Zone B for backward districts, ensuring tailored incentives and equitable distribution of funds.
All eligible units located in Zone A category blocks in the States of the North-Eastern Region can avail of Capital Interest Subvention at the annual rate of 3% for a maximum of 7 years from any date after the date of application for registration under this scheme. All eligible units located in Zone B category blocks in the States of the North-Eastern Region can avail of Capital Interest Subvention at the annual rate of interest of 5% for a maximum of 7 consecutive years from any date after the date of application for registration under this scheme.
The scheme will be implemented under the supervision of the Government of India i.e. the Department for Promotion of Industry & Internal Trade (DPIIT) and implemented through State machinery with the support of the Project Monitoring Unit (PMU) and Project Implementation Unit (PIU).
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