Govt approves Rs 10,037 crore scheme to promote industrialisation in NE region

Govt approves Rs 10,037 crore scheme to promote industrialisation in NE region

The government on Thursday approved a Rs 10,037-crore new industrial development scheme, UNNATI, for eight northeastern states.

The Union Cabinet, chaired by Prime Minister Narendra Modi, in a meeting, approved the Uttar Poorva Transformative Industrialization (UNNATI) Scheme, 2024, here, an official release said.

The central sector scheme has been announced for the development of industries and employment generation in the states of North East Region. Incentives would be provided to investors for setting up new units or undertaking a significant expansion of the existing units under the scheme.

The scheme will be effective from the date of notification and up to March 31, 2034, along with eight years of committed liabilities.

"The financial outlay of the proposed scheme is Rs 10,037 crore for the scheme period from the date of notification for 10 years. (Additional 8 years for committed liabilities)," the statement said.

The scheme is proposed to be divided into two parts- Part A caters to the incentives to the eligible units (Rs 9,737 crore), and Part B, is for implementation and institutional arrangements for the scheme (Rs 300 crore).

The incentives of the scheme include capital investment incentive, central capital interest subvention (for both new and expanding units); manufacturing and services linked incentive (for new units only linked to net payment of GST).

It added that the maximum eligible benefits to one unit from all components of the scheme is Rs 250 crore.

"The proposed scheme envisages about 2,180 applications, and it is anticipated that direct employment opportunities of about 83,000 will be generated during the scheme period," it said adding a significant number of indirect employment is also expected to be generated.

Industrial units will be allowed to apply for registration from the date of notification up to March 31, 2026 and all applications for registration shall have to be disposed of by March 31, 2027.

Further it said that all eligible Industrial Units to commence their production or operation within 4 years from the grant of registration.

Districts are categorized in two zones – Industrially Advanced Districts and Industrially backward Districts.

"60 per cent of the outlay of Part A has been earmarked to eight northeast states and 40 per cent on First-In-First-Out (FIFO) basis," it added.

The DPIIT will implement the scheme in cooperation with the states.

Implementation will be overseen by three committees at the national and state levels – Steering Committee, headed by the Secretary, DPIIT will decide upon any interpretation of the scheme within its overall financial outlay and issue detailed guidelines for execution.

The State Level Committee, headed by the state's Chief Secretary, will monitor implementation, checks and balances, ensuring transparency and efficiency.

The Secretary Level Committee, headed by the senior Secretary of the state (Industries), will be responsible for implementing the scheme, including the recommendation of registration and incentives claims. PTI RR MR