Lok Sabha Question No. 3529 (UNSTARRED), answered on 2024-12-17
Subject: Features of Uttar Poorva Transformative Industrialization Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Jugal Kishore, Shri Bhartruhari Mahtab, Shri Ravindra Shukla Alias Ravi Kishan

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 3529.

TO BE ANSWERED ON TUESDAY, THE 17 TH  DECEMBER, 2024.

## FEATURES OF UTTAR POORVA TRANSFORMATIVE INDUSTRIALIZATION SCHEME

3529.  SHRI BHARTRUHARI MAHTAB: SHRI JUGAL KISHORE:

SHRI RAVINDRA SHUKLA ALIAS RAVI KISHAN:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) the  objectives  and  salient  features  of  the  Uttar  Poorva  Transformative Industrialization Scheme (UNNATI);
- (b) the details of structured incentives to attract investors under the said Scheme; and
- (c) the manner in which the said scheme aims to meet the needs of the industrially backward districts in the North East Region?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a): Objectives of the UNNATI Scheme: To strengthen Industrial Eco-System and to attract new Investment for Employment Generation in North East Region.

## Salient Features of the UNNATI Scheme are as under:

The  Scheme  is  effective  from  the  date  of  notification,  i.e.  09.03.2024  for  a period of 10 years plus 8 more years for meeting the committed liabilities. Total Budget Outlay of the Scheme is Rs. 10,037 crores. The Total Budget Outlay is divided into Part A and part B. Part A of the Scheme, with an outlay of Rs. 9737 Cr,  is  for  providing  incentives  to  eligible  new  industrial  units  and  those undergoing substantial expansion. Part B of the Scheme, with an outlay of Rs. 300 Cr., is for implementation & institutional arrangements for the Scheme. 60 % of the outlay of Part A is earmarked to all states of North East Region, while the rest will be provided on the FIFO principle. Industrial units will be allowed to apply for registration under the Scheme till 31.03.2026. Districts are categorized in two zones: Zone A (industrially advanced districts) and Zone B (industrially backwards districts) based on the NER district SDG index (2021-22).

## (b):    Incentives under UNNATI:

- i. Capital Investment Incentive: - This incentive is for new & existing units with substantial expansion. Industrial units in which GST is applicable and located in Zone A districts may avail Capital incentive of 30% of eligible investment with upper limit of Rs. 5 Cr. While the industrial units in which GST is applicable and located  in  Zone  B  districts  may  avail  Capital  incentive  of  50%  of  eligible investment with upper limit of Rs. 7.5 Cr. On the other hand, industrial units in which GST is not applicable and located in Zone A districts may avail Capital incentive of 30% of eligible investment with upper limit of Rs. 10 Cr. Similarly, industrial units in which GST is not applicable and located in Zone B districts may avail Capital incentive of 50% of eligible investment with upper limit of Rs. 10 Cr.
- ii. Central Capital Interest Subvention Incentive: - This incentive is also for new unit & existing units with substantial expansion.  Interest Subvention of 3% on Term loan up to principal amount of Rs 250 Cr. may be availed by industrial units located in Zone A districts for 7 years. While, Interest Subvention of 5% on Term loan up to principal amount of Rs 250 Cr. may be availed by industrial units located in Zone B districts for 7 years.
- iii. Manufacturing & Services linked incentive (MSLI) - This incentive is for new units  only  and  is  equal  to  the  net  payment  of  GST.  It  may  be  availed  for  a maximum period of 10 years. The upper limit of this incentive is 75% of eligible value of investment for industrial units located in Zone A and 100% of eligible value of investment for industrial units located in Zone B.
4. (c) :     Districts of North Eastern Region are divided into Zone A and Zone B, with Zone B having industrially backward Districts. Industrial Units located in Zone B are offered incentives such as Capital Investment Incentive (CII), Central Capital Interest  Subvention  Incentive  (CCISI),  and  Manufacturing  &  Services  linked incentive (MSLI) that are higher than Zone A districts.

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