The UNNATI scheme was launched in March 2024 to foster economic growth and industrialisation in the North-East. It aims to revolutionise industry and service sectors and act as a catalyst for economic growth and development by generating about 83,000 direct jobs and many more indirect jobs. Its main focus is to attract investments and promote industries especially renewable energy and electric vehicle charging stations. Besides, the scheme also aims for skill development and sustainable development by encouraging environmentally friendly industries and restricting environmentally harmful industries like cement and plastic.
Some Key Features of the Scheme
The Scheme has been launched with a budget outlay of Rs 10,037 crore for a period of 10 years up to March 31, 2034, with additional committed liabilities for eight years. It is divided into two parts: Part A, with a budget of Rs 9,737 crore, will take care of the incentives that are to be given to eligible units and those undergoing substantial expansion. This part has three components, i.e., Capital Investment Incentive (CII), Central Interest Subvention (CITS), and Manufacturing & Services Linked Incentive (MSLI). Part B, with its budget of Rs 300 crore, will cater to the costs involved in the implementation, institutional arrangements for the scheme project monitoring, third-party evaluation and impact assessment, and capacity building workshops, etc. Some 60 per cent of the outlay of Part A is allotted to eight North-East states and 40 per cent on the first-in-first-out (FIFO) basis. For the purpose of the scheme, the region has been divided into two zones: Zone A for industrially advanced districts and Zone B for industrially backward districts.
The Scheme will be implemented and supervised by the Department for Promotion of Industry and Internal Trade (DPIIT). Committees at both state and national levels will monitor the implementation of the scheme. The eligible industrial units can apply for registration till March 31, 2026, and the registrations will be disposed off by March 31, 2027. The industrial units must start their operations within four years from the grant of registration.
Rights of the Government
If any unit availing incentives under this scheme goes out of production/operation permanently or is redirected to a new location (partly or wholly) within 10 years, the unit would not be able to claim any incentive. Moreover, such units would be liable to refund the entire grant or incentive, if already availed.
The minister in charge is authorised to make any modifications in the Scheme as deemed necessary for the implementation of the Scheme.
Nodal Agency
The North-Eastern Development Financial Corporation Ltd. (NEDFi) will be the nodal agency as regards disbursals of the incentives. The incentive will be released only through e-transfer to the designated bank accounts of eligible units. The agency shall furnish a certificate of utilisation of the incentives with regard to disbursements to the DPIIT within three months from the date of receipt of the last instalment.
Conclusion
To conclude, this Scheme will be a significant booster to the Northeastern economy. It would improve the employment, infrastructure, as well as overall socio-economic development of the region. While focussing on sustainable development, attracting new investments, and nurturing existing industries, this scheme will also encourage new industries to be set up in locations that are otherwise not-so-preferred. This will ensure the equitable distribution of opportunities all over India and avoid the concentration of industries in a few states or cities.
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