HomeGovt. SchemeUNNATI Scheme: Boosting Industrial Development in the North East

UNNATI Scheme: Boosting Industrial Development in the North East

Union Cabinet Approves UNNATI Scheme to Drive Industrial Development in Northeast India

Ahead of Prime Minister Narendra Modi’s upcoming two-day visit to the northeast, the Union cabinet, on Thursday, gave its nod to the Rs 10,037-crore Uttar Poorva Transformative Industrialization Scheme (UNNATI). The scheme, spanning over the next decade, aims to rejuvenate the industrial development in the region by attracting new investments and nurturing existing ones. With a focus on job creation, skill development, and sustainability, the UNNATI Scheme is poised to bring about significant economic growth in the northeastern states. Read on for more detailed information on the UNNATI Scheme.

The Indian government has greenlit the UNNATI Scheme, a novel industrial development initiative backed by a budget of Rs 10,037 crore. This central sector plan is geared towards stimulating industrial growth and fostering employment opportunities across India’s eight northeastern states. In a bid to attract investments and spur regional economic progress, the program offers incentives to investors for establishing new ventures or expanding existing ones. Envisaging around 2180 applications under the proposed scheme, it anticipates the creation of 83,000 direct job opportunities over its tenure, with a substantial number of indirect employment opportunities also expected. The notification period is slated to commence on March 31, 2034, and conclude on March 31, 2034, encompassing eight years of committed liabilities.

NameUNNATI Scheme
Full FormUttar Poorva Transformative Industrialization Scheme (UNNATI)
Approved byUnion cabinet of India
Approved on7 Mar 2024
ObjectiveTo promote industrial growth
BeneficiariesIndia’s eight northeastern states
Official WebsiteN/A

The initiative targets job creation and industrial promotion in the Northeast Region through the encouragement of manufacturing and service-oriented economic activities. The core objective of the UNNATI program is to facilitate meaningful employment opportunities, thereby driving the overall socioeconomic advancement of the region.

Below are some of the salient features and advantages of the Uttar Poorva Transformative Industrialization Scheme:

  1. Commencing upon notification and spanning eight years until March 31, 2034, with committed obligations.
  2. All eligible industrial units are required to commence production or operations within four years of registration.
  3. Districts are categorized into two zones: Zone A (Industrially Advanced Districts) and Zone B (Industrially Backward Districts).
  4. Capital Investment Incentive covers building construction and Plant & Machinery (P&M) expenditures, adhering to MSME industry guidelines for Micro enterprises.
  5. The Department for Promotion of Industry and Internal Trade (DPIIT), in collaboration with states, will oversee scheme implementation.
  6. Oversight of scheme implementation will be carried out by national and state committees, including the State Level Committee and the Steering Committee, ensuring transparency and facilitating registration and incentive claims.
  7. Budget allocation: 60% of the Part A budget will be allocated to the eight Northeast states, with the remaining 40% following the First-In-First-Out (FIFO) system.
  8. Each newly constructed industrial unit and expanding unit will qualify for the corresponding incentives.

The scheme offers various incentives to eligible industrial units, including benefits for capital investments, central capital interest subvention for new and expanding units, and incentives tied to manufacturing and services for new units, subject to net GST payment. The total allowable benefits under the scheme for a single unit are capped at Rs 250 crore.

Industrial units have until March 31, 2026, to submit registration applications under the program from the announcement date. By March 31, 2027, all registration applications must be processed. Eligible industrial units must commence production or operations within four years of receiving their registration.

In coordination with the states, the Department for Promotion of Industry and Internal Trade (DPIIT) will administer the program. The implementation will be supervised by the following state and national committees:

  1. The Steering Committee, led by the Secretary of DPIIT (SIIT), will determine the scheme’s interpretation regarding its overall financial expenditure and provide comprehensive implementation guidelines.
  2. The State Level Committee, overseen by the state’s chief secretary, will ensure effective implementation and serve as a mechanism for accountability to ensure efficiency and transparency.
  3. Implementation tasks, including recommending registration and incentive claims, will be the responsibility of the Secretary Level Committee, headed by the state’s senior secretary of industries.

Employment Generation:
In the northeastern region, the UNNATI Scheme is poised to generate a substantial number of job opportunities. It is estimated that throughout the program, there will be the creation of 83,000 direct employment positions along with a significant number of indirect employment prospects.

UNNATI Scheme Registration Process:
The Union Cabinet of India has recently launched the UNNATI Scheme. While the government has not yet released the official website for this scheme, it is expected to do so shortly. We will provide updates on this scheme as soon as new information becomes available.

  1. What is the primary objective of the UNNATI Scheme?
    The primary goal of the UNNATI Scheme is to stimulate growth in the manufacturing and service sectors of the economy to foster socioeconomic development throughout the region.
  2. What is the full form of the UNNATI Scheme?
    The full form of the UNNATI Scheme is the Uttar Poorva Transformative Industrialization Scheme.
  3. What is the total budget of the UNNATI Scheme?
    The total budget allocated for the UNNATI Scheme is Rs 10,037 crore.

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