Govt approves Rs 10,037 crore UNNATI scheme for Northeast industrial development

In a significant move to bolster industrial growth and employment opportunities in the northeastern states, the government has approved the Uttar Poorva Transformative Industrialization Scheme, 2024, with a budget of Rs 10,037 crore. 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.

Financial Allocation and Targets:


The scheme's financial outlay is Rs 10,037 crore for a period of 10 years, with an additional eight years for committed liabilities. It will be a Central Sector Scheme divided into two parts: Part A for incentives to eligible units (Rs 9,737 crore) and Part B for implementation and institutional arrangements (Rs 300 crore).

The proposed scheme aims to receive approximately 2,180 applications, generating around 83,000 direct employment opportunities during the scheme period, with a significant number of indirect employment opportunities expected.

Salient Features and Implementation Strategy:

• The scheme period will be effective from the date of notification until March 31, 2034, with an additional eight years of committed liabilities.
• Industrial units can apply for registration from the date of notification until March 31, 2026.
• All applications for registration must be disposed of by March 31, 2027.
• Eligible industrial units must commence production or operation within four years from the grant of registration.
• Districts are categorized into two zones: Zone A (Industrially Advanced Districts) and Zone B (Industrially Backward Districts).
• 60% of the outlay of Part A has been earmarked for the eight NE states, and the remaining 40% will be allocated on a First-In-First-Out (FIFO) basis.
• Micro industries (defined as per MSME industry norms) will have the building construction and P&M costs included in the P&M calculation for Capital Investment Incentive.

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.

Background and Emphasis on Sustainable Development:

The Government of India has introduced the New Industrial Development Scheme, UNNATI (Uttar Poorva Transformative Industrialization Scheme), 2024, to spur industrial development and job creation in the North East Region. The scheme's focus is on job creation, skill development, and sustainable development by attracting new investments and nurturing existing ones.

To maintain a balance between industrial growth and environmental conservation, certain industries are included in the positive list, such as renewable energy and EV charging stations, while others, like cement and plastic, are on the negative list due to their potential environmental impact.