The Uttar Poorva Transformative Industrialization Scheme (UNNATI – 2024) is a flagship initiative launched by the Government of India, under the aegis of the Ministry of Commerce & Industry, with the objective of accelerating inclusive and sustainable industrial development in the North Eastern Region (NER). This scheme is designed to harness the untapped economic potential of the eight North Eastern states — Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.

UNNATI-2024 represents a strategic intervention to attract private investment, boost infrastructure development, create employment opportunities, and foster socio-economic integration of the region with the national growth trajectory. The scheme will be implemented under the supervision of the Government of India i.e. the Department for Promotion of Industry & Internal Trade (DPIIT)

Registration:

The scheme is commenced from 09.03.2024 and is valid till 08.03.2034. Registration shall commence from 09.03.2024 and will continue till 31.03.2026.

Notwithstanding the permissible period of registration till 31.03.2026, further grant of registration and receipt of application in the portal under the scheme will be stopped prior to this period if the projected financial liability of the units that are granted registration reaches 115% of the total financial outlay of the scheme.

Date of Initiation of plan is 09.03.24 and legitimate till 31.03.2034. Production ought to be start in something like 4 years of enrollment.

Eligibility criteria:

Scheme will be applicable for both New as well as expansion of units.

New Unit:

• For both manufacturing and service sector, a unit registered under this scheme on or after 09.03.2024 but not later than 30.09.2026. Such a unit has to commence commercial production within 4 years from the date of grant of registration.
• A new unit will be required to fulfill the following conditions: It is not formed by splitting up, or reconstruction of a business already in existence and it is not formed by transfer to the new unit of plant or machinery previously used for any other purpose .It has not relocated from elsewhere and/or is not an existing unit reopened under a new name and style.
• New unit must have a new GSTIN and unit cannot use a GSTIN of any existing unit.‘ Existing Unit’ means a unit that has commenced commercial production/operation prior to 09.03.2024 and having a valid GST Identification Number (GSTIN) in the concerned State of North-Eastern Region.
• ‘Substantial expansion’ means an additional investment of a minimum of twenty-five percent (25%) of the total amount of investment already made in an existing unit in plant and machinery (for manufacturing sector) or construction of building and other durable physical assets (for service sector).
• All units eligible under the Manufacturing and Service sector will be granted incentive(s) under this scheme as defined under respective incentives.
• Manufacturing sector units with a minimum investment of Rs. 1.0 Crore in plant & machinery will be eligible for incentives under this scheme. For calculation of any incentive under the scheme the eligible value shall be determined based on the investment made in Plant & Machinery in manufacturing sector.
• Service sector units with a minimum investment of Rs. 50 Lakh in building and other durable physical assets will be eligible for incentives under this scheme.
• For Micro Industries the minimum investment limit shall be ₹50 Lakh for both manufacturing and service sector.
• For Micro industries (defined as per MSME industry norms), the Plant & Machinery calculation will include the cost of building construction as well.
• All eligible units have to commence commercial production/operation within 4 years from the date of grant of registration.
• The unit shall be allowed to sell or supply* the finished goods produced/manufactured in the intermediate phases.
• The final invoice for procurement of Plant & Machinery or for construction of building and durable physical assets must be on or after 09.03.2024 to be considered eligible under the scheme.
• The maximum eligible benefit to one unit from all scheme components is Rs. 250 crores
• Units availing benefits under other schemes of the Government of India will not be eligible for same incentives under this Scheme. However, the eligible value of Plant & Machinery (Manufacturing Sector) or construction of building and durable physical assets (Service sector) for claiming other eligible incentives under UNNATI will be calculated by Department of Industries of the concerned State Government.
• Eligibility under this scheme will be subject to verification of investment (core and noncore) in plant and machinery (in the manufacturing sector) and cost of construction of building and other durable physical assets (in the service sector).

Positive List: For Service Sector

The following service sector industries, details of which will be given in the guidelines, will be eligible for benefits under Uttar Poorva Transformative Industrialization Scheme (UNNATI), 2024 for the North-Eastern Region:

01). Hotels & Hospitality

02). Tourism (Home stays, Adventure, Health Tourism, Eco-Tourism & MICE)

03). Education (Vocational & Digital/e-learning)

04). Bio-tech

05). Fin-tech & Financial Services

06). Healthcare (Secondary & Tertiary)

07). IT-ITeS

08). BPO

09). EV Charging Stations

10). Tech-oriented start-ups/units providing services in the field of: a. Education  b. Primary healthcare  c. Agriculture

11). Any other industry or activity placed in positive list through a separate notification as and when considered necessary by the Steering Committee

Key Objectives

• Industrial Diversification: Promote region-specific industrial sectors such as agro-processing, handlooms and handicrafts, tourism, renewable energy, and information technology.
• Infrastructure Development: Create state-of-the-art industrial infrastructure including clusters, industrial parks, logistics hubs, and skill development centers.
• Employment Generation: Create sustainable livelihoods and skill-based employment for local youth, especially in rural and tribal belts.
• Investment Promotion: Facilitate domestic and foreign investments through targeted incentives, ease of doing business reforms, and public-private partnerships.
• Sustainability and Inclusivity: Encourage green industries, sustainable practices, and women-led enterprises in the industrial landscape of the NER.

Benefits & Incentives under the scheme:

Subject to eligibility, the following incentives are provided under this scheme:

1. Capital Investment Incentive (CII)
2. Capital Interest Subvention (CIS)
3. Manufacturing & Services linked incentive (MSLI)

Capital subsidy of 30% maximum up to Rs 5.00 Cr for Zone A and 50% maximum up to Rs 7.50 Cr for Zone B will be applicable

Interest on loan up to the principal amount of Rs. 250crore for investment in eligible plant and machinery (manufacturing sector) or Building and all other durable physical assets (for service sector) shall be eligible for Capital Interest subvention. Interest subsidy on Term Loan of 3 % & 5% is also offered for 7 years in zone A&B respectively.

MSLI (GST Benefits) is offered as net refund of GST paid after input Tax credit adjustment, the quantum of incentive is restricted to 75% & 100% of P&M value in zone A& B respectively. The amount of incentive paid in a financial year will be one-tenth of the total amount of eligible incentive under this component subject to full payment of GST as per GST return filed for the claim period. In case the Net GST paid by any unit in a financial year is more than one-tenth of the total amount of eligible incentive, the balance can be carried forward to the subsequent financial year(s).

Why Invest in North East India?

• Strategic Location: Proximity to ASEAN and BBIN countries.
• Rich Resources: Abundant natural, mineral, and human resources.
• Cultural Diversity: Unique heritage supporting niche industries.
• Policy Support: Strong central and state-level incentives.
• Emerging Infrastructure: Rapid development of roads, airports, power grids, and digital connectivity.

Partner with Us

We support businesses and entrepreneurs in navigating the opportunities offered by UNNATI-2024. Our services include:

• Project Conceptualization & DPR Preparation
• Incentive Eligibility Assessment
• Investment & Financial Structuring
• Regulatory & Compliance Assistance
• Liaison with State and Central Authorities
• Monitoring & Reporting Support

Let us help you make a transformative impact in one of India’s most promising regions.