Uttar Poorva Transformative Industrialization Scheme (UNNATI)

About Uttar Poorva Transformative Industrialization Scheme (UNNATI)

• The scheme, aimed at developing industries and generating employment in the North East Region, seeks to create productive economic activity in manufacturing and services.
• The main objective of the UNNATI scheme is to generate gainful employment, leading to the overall socio-economic development of the region.
• It is set to be effective from the date of notification and will run until March 31, 2034, inclusive of eight years of committed liabilities.
• Expenditure involved:
  • 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).
  • This will be a Central Sector Scheme.
  • The scheme is proposed to be divided into two parts. Part, A caters to the incentives to the eligible units (Rs. 9737 crores), and Part B, is for implementation and institutional arrangements for the scheme. (Rs. 300 Crore).
• Salient features of the scheme
  • Scheme period: The scheme will be effective from the date of Notification and up to 31.03.2034 along with 8 years of committed liabilities.
  • Application period for registration: Industrial unit will be allowed to apply for registration from the date of notification up to 31.03.2026
  • Commencement of Production or operation: All eligible Industrial Units to commence their production or operation within 4 years from the grant of registration.
  • Districts are categorized in two zones: Zone A (Industrially Advanced Districts) & Zone B (Industrially Backward Districts)
  • Earmarking of funds: 60% of the outlay of Part A has been earmarked to 8 NE states and 40% on First-In-First-Out (FIFO) basis.
  • All new Industrial units and Expanding units would be eligible for the respective incentives.
• Implementation of the scheme will be overseen by the Department for Promotion of Industry and Internal Trade (DPIIT) in cooperation with the states.
• Committees at the national and state levels, including the Steering Committee and State Level Committee, will monitor implementation, ensure transparency, and recommend registration and incentives claims.

Q1) What is a centrally sponsored scheme?

These are schemes that are funded partially by both the Central and State Governments.It is a channel which the central government uses to help the states run their plans financially.The amount of state participation varies from state to state.Their implementation rests on the Union territories and the States.

Source: Cabinet approves Uttar Poorva Transformative Industrialization Scheme, 2024