The Uttar Poorva Transformative Industrialization Scheme (UNNATI) 2024, launched by the Government of India vide Notification (F. No. P-44015/1/2023-DBA-II dated 9th March 2024), targets industrial growth and job creation in the Northeast region. With a focus on incentivizing new investments and expansion projects, UNNATI offers various benefits to eligible investors. Understanding the scheme’s provisions and operational guidelines is crucial for stakeholders seeking to leverage its advantages for industrial development.
The following incentives would be available under the scheme to investors for setting up new units or undertaking significant expansion of the existing units.
1. Capital Investment Incentive (CII)
2. Capital Interest Subvention (CIS)
3. Manufacturing & Services linked incentive (MSLI)
| SL No | Scheme | Zone | New Units | Expending units |
| 1 | Capital Investment Incentive (CII)
|
Zone A | 30% of eligible value of investment in plant and machinery / construction of building & durable physical assets with cap of Rs. 5Cr. | 30% of eligible value of investment in plant and machinery / construction of building & durable physical assets with cap of Rs. 10Cr. |
| Zone B | 50% of eligible value of investment in plant and machinery / construction of building & durable physical assets with cap of Rs. 7.5 Cr | 50% of eligible value of investment in plant and machinery / construction of building & durable physical assets with cap of Rs. 10 Cr. | ||
| 2 | Capital Interest Subvention (CIS | Interest on loan up to the principal amount of Rs. 250 crore for investment in eligible plant and machinery (manufacturing sector) or building and all other durable physical assets (for service sector) shall be eligible for Capital Interest subvention. If the total principal amount of the loan is more than Rs.250 crore, then interest on the loan amount exceeding Rs. 250 crores would not be eligible for Capital Interest Subvention. | ||
| Zone A | 3% interest subvention offered for 7 years | 3% interest subvention offered for 7 years | ||
| Zone B | 5% interest subvention offered for 7 years | 5% interest subvention offered for 7 years | ||
| 2 | Manufacturing & Services linked incentive (MSLI) | MSLI is available only for New | MSLI is not available for expansion units | |
| Zone A | 75% of eligible value of investment in Plant & Machinery. | – NA – | ||
| Zone B | 100% of eligible value of investment in Plant & Machinery. | – NA – | ||
| Condition for availing MSLI:
(a) All eligible units of Zone A & Zone B will be granted a Manufacturing & Services linked incentive (MSLI) equal to 100% of the Net payment of GST, i.e. GST Paid less Input Tax Credit, for a maximum period of 10 years from the date of commencement of commercial production or till the validity of the scheme whichever is earlier. (b) GST paid on exported goods or services will not be counted towards eligible incentive amounts under this component. (c) The amount of incentive paid in a financial year will be one-tenth of the total amount of eligible incentive under this component subject to full payment of GST as per GST return filed for the claim period. (d) In case the Net GST paid by any unit in a financial year is more than one-tenth of the total amount of eligible incentive, the balance can be carried forward to the subsequent financial year(s). (e) If the unit cannot claim the full eligible amount of incentives in the first 3 years, the same can be carried forward to subsequent years. However, this will not be carried forward beyond the eligible period of 10 years or beyond the scheme’s validity, whichever is earlier. |
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CONDITIONS FOR AVAILING INCENTIVES.
1. ELIGIBILITY:
- Manufacturing sector units with a minimum investment of 1 (one) crore in Plant & 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
- Micro Industries the minimum investment limit shall be Rs. 50 lakhs for both manufacturing and service sector
- For calculation of any incentive under the scheme the eligible value shall be determined based on the investment made in Plant & Machinery in manufacturing sector. For Micro industries (defined as per MSME industry norms), the Plant & Machinery calculation will include the cost of building construction as well.
The scheme shall not apply to the units that manufacture the products listed in the Negative list in Annexure –I of the Notification.
The scheme shall be applicable only for services listed in the Positive list in Annexure-II of the Notification.
All eligible units have to commence commercial production/operation within 4 years from the date of grant of registration.
The maximum eligible benefit to one unit from all scheme components is Rs. 250 crores
Units availing benefits under other schemes of the Government of India will not be eligible for same incentives under this Scheme.
Eligibility under this scheme will be subject to verification of investment (core and non-core) in plant and machinery (in the manufacturing sector) and cost of construction of building and other durable physical assets (in the service sector). However, the incentive will be eligible only for core segment in both manufacturing and service sector.
The beneficiary of this scheme has to furnish an undertaking to abide by the terms and conditions of the scheme.
GENERAL OPERATIONAL GUIDELINES FOR THE SCHEME:
1. Duration of the Scheme:10 years along with 8 years of committed liabilities.
2. Registration under the Scheme shall commence on 09-03-2024 and will continue until 08-03-2034 along with 8 years of committed liabilities.
3. The applications to avail the incentive(s) will be received till 31-03-2026 and all registered applications shall be disposed of by 30-09-2026 unless otherwise extended.
4. Zone A (Industrially Advanced Districts) & Zone B (Industrially Backward Districts) for the purpose of this scheme will be issued separately.
5. The applicant unit willing to avail the incentive(s)under the scheme has to apply for Registration through the online portal dpiit.gov.in.
6. No unit will have the right to register under this scheme or claim the benefits unless the competent authority approves it.
7. The application details and documents uploaded for registration shall be verified after the site visit of the unit (Premises) and examination of the documents by the concerned DIC.
8. After checking the eligibility of the applicant unit as per the scheme notification dated 09-03-2024, General Manager, DIC (concerned) shall recommend the application for registration to the Directorate of Industries & Commerce (concerned) along with the online certificate.
9. The concerned Directorate Level shall recommend the cases to the Secretary Level Committee at the State Level which shall further recommend it to the DPIIT Level Committee for final approval of grant of registration.
10. The states will have a 3-months’ timeline to process the registration application and recommend it to DPIIT for decision. In case of pendency beyond 3 months, the application shall be considered “deemed recommended” by the state and eligible for consideration at the DPIIT level. For all such applications, the committee at the DPIIT shall do its due diligence through PMU/PIU. At DPIIT, the maximum time to grant registration is 30 days.
11. DPIIT will issue registration certificates to the approved industrial units through online portal.
Conclusion: UNNATI 2024 presents a significant opportunity for industrial growth in Northeast India, offering attractive incentives to investors. By facilitating new investments and expansion initiatives, the scheme aims to stimulate economic development and create employment opportunities in the region. Adherence to the scheme’s eligibility criteria and operational guidelines is essential for maximizing its benefits and driving sustainable industrialization in Uttar Poorva.
General Operational Guidelines For Registration of Scheme (Unnati), 2024
DISCLAIMER: The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation
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