The Uttar Purva Transformative Industrialization Scheme (UNNATI), 2024, is a central sector initiative aimed at fostering industrial growth and creating employment in the North Eastern Region (NER) of India. The scheme focuses on developing the manufacturing and service sectors in all eight northeastern states: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura. With a total financial outlay of ₹10,037 crore, the scheme is designed to run for ten years from its notification date, with an additional eight years for committed liabilities.
Key Objectives:
- Industrial Development: UNNATI aims to attract new investments and boost productivity in both manufacturing and services sectors, thereby enhancing industrial output.
- Job Creation: The scheme prioritizes employment generation through the establishment of new industrial units and expansion of existing ones, targeting overall socio-economic development in the region.
Major Components:
- Capital Investment Incentive (CII):
● Offers 30%–50% of eligible investment in plant and machinery, with incentives capped at ₹5 crore (Zone A) and ₹7.5 crore (Zone B) depending on the location of the industry within the northeastern states.
● Zone A refers to industrially advanced districts, while Zone B comprises backward districts, offering higher incentives to encourage balanced development. - Capital Interest Subvention (CIS):
● Provides 3%–5% interest subvention for up to 7 years on loans up to ₹250 crore for eligible units, depending on the district’s classification. - Manufacturing & Services Linked Incentive (MSLI):
● New units can avail an incentive equal to 75%–100% of their net GST payment for up to 10 years, promoting sustained industrial activity.
Impact on Industrial Development and Job Creation:
- Boost to Manufacturing and Services: By offering substantial financial incentives, UNNATI encourages both new and expanding industrial units, fostering an environment for rapid industrial growth. Sectors such as renewable energy and electric vehicle infrastructure are prioritized, ensuring alignment with sustainable development goals.
- Employment Growth: The scheme is expected to create direct and indirect employment opportunities by stimulating industrial projects in underdeveloped areas. This will address the region’s traditionally low employment rates and increase income levels.
- Balanced Regional Growth: With funds earmarked specifically for backward districts (Zone B), the scheme promotes balanced industrial growth across the region, helping to uplift economically lagging areas.
- Boost to Entrepreneurship and Local Enterprises: UNNATI fosters entrepreneurship by offering substantial financial incentives to local businesses, particularly tribal entrepreneurs and women-led enterprises.
Overall, UNNATI will significantly enhance the industrial landscape of Northeast India, creating a conducive environment for sustainable growth, improving local economies, and reducing regional disparities.
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