In recent years, the Government of India has made concerted efforts to boost the economic landscape of North-East India. A region rich in natural resources and cultural heritage, North-East India holds immense potential for industrial growth and development. To tap into this potential, the Government has introduced the Uttar Poorva Transformative Industrialization Scheme, commonly known as UNNATI 2024. This comprehensive subsidy scheme is designed to attract investments, foster industrialization, and create a robust economic ecosystem in the North-Eastern states. If you’re considering investing in this region, now is the perfect time. Here’s why.
Page Contents
Coverage and Duration
UNNATI 2024 covers all eight North-Eastern states: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura. The scheme is effective from March 9, 2024, and will continue until March 8, 2034. This decade-long initiative provides ample time for investors to plan and execute their projects. Additionally, the scheme includes an extended period of eight years for meeting committed liabilities, ensuring long-term support and stability for industrial projects initiated under its ambit.
Eligible Units
The scheme is designed to benefit both new and expanding industrial units. Here’s a detailed overview of the eligibility criteria:
- New Units:
- Manufacturing Units: These are industrial entities that process raw materials or inputs to produce a new product with a distinct name, character, and use. New units must not be formed by splitting up or reconstructing an existing business or by transferring used machinery from another location. They must also have a new GSTIN.
- Service Units: This includes entities in sectors such as Hotels & Hospitality, Tourism (Homestays, Adventure, Health Tourism, Eco-Tourism & MICE), Education (Vocational & Digital/e-learning), Bio-tech, Fin-tech & Financial Services, Healthcare (Secondary & Tertiary), IT-ITeS, BPO, EV Charging Stations, and tech-oriented start-ups providing services in education, primary healthcare, and agriculture. Similar to manufacturing units, service units must be newly formed and possess a new GSTIN.
- Existing Units: Units that have commenced commercial production or operations before March 9, 2024, with a valid GST Identification Number (GSTIN) in the North-Eastern states, are eligible for benefits under substantial expansion criteria.
- Substantial Expansion: An additional investment of at least 25% of the total amount of investment already made in an existing unit in plant and machinery (for manufacturing) or construction of building and durable physical assets (for the service sector). This additional investment should enhance production capacity, services, or diversification and not merely replace existing plant and machinery.
Registration
Registration for the UNNATI 2024 scheme starts on March 9, 2024, and continues until March 31, 2026. Interested units must apply through the online portal, and all applications will be processed by September 30, 2026, unless extended. It’s important to note that merely applying does not guarantee incentives; applications must meet all eligibility criteria and be approved by the competent authority.
Key Components
The UNNATI 2024 scheme is divided into two main parts: Part A, which provides direct incentives to industrial units, and Part B, which focuses on developing the industrial ecosystem. Here’s a comprehensive look at the key components of Part A:
Capital Investment Incentive (CII)
Objective: Encourage the establishment of new industrial units and the expansion of existing ones.
Eligibility:
- New units registered under the scheme.
- Expanding units in both Zone A and Zone B districts.
Incentive Details:
- For units in Zone A: 30% of the eligible investment made in plant and machinery or for the construction of buildings and installation of other durable physical assets, with a maximum limit of Rs. 5 crore.
- For units in Zone B: 50% of the eligible investment, with a maximum limit of Rs. 7.5 crore.
Application Process:
- Applications must be submitted through the online portal.
- Physical verification of units is mandatory before availing of the incentive.
Central Interest Subvention (CIS)
Objective: Reduce the financial burden on industrial units by subsidizing interest rates on loans for eligible projects.
Eligibility:
- New units and expanding units in both manufacturing and service sectors.
- Loans up to Rs. 250 crore for investment in eligible plant and machinery or building and other durable physical assets.
Incentive Details:
- Zone A: Interest subvention rate of 3% per annum for a maximum of 7 consecutive years from any date after the application for registration.
- Zone B: Interest subvention rate of 5% per annum for the same duration.
Application Process:
- Applicable on loans from Scheduled Commercial Banks or Financial Institutions registered by the Reserve Bank of India.
- Disbursement begins only after the commencement of commercial production.
Manufacturing & Services Linked Incentive (MSLI)
Objective: Promote higher production and quality services by linking incentives to manufacturing output and service delivery.
Eligibility:
- New units with a valid GST Identification Number (GSTIN).
Incentive Details:
- Incentive equal to 100% of the net payment of GST (GST paid less Input Tax Credit) for up to 10 years from the date of commencement of commercial production or operation, or until the validity of the scheme, whichever is earlier.
- Upper limit: 75% for units in Zone A and 100% for units in Zone B of the eligible value of investment made in plant and machinery or building and other durable physical assets.
Important Considerations:
- The amount paid in a financial year will be one-tenth of the total eligible incentive amount, subject to full payment of GST as per GST return filed for the claim period.
- If the net GST paid exceeds one-tenth of the total eligible incentive, the balance can be carried forward to subsequent financial years.
Conclusion
The UNNATI 2024 scheme represents a significant opportunity for investors looking to tap into the potential of North-East India. By offering a comprehensive framework of incentives and support, the scheme aims to attract investments, promote industrial growth, and ensure balanced regional development. Entrepreneurs and industrialists should explore the opportunities presented by UNNATI 2024 and leverage the benefits it offers to establish and expand their ventures in this promising region.
***
For more detailed information on the scheme and to apply, visit SubsidySeva.com.
Author Bio
