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The Union Cabinet approved the proposal for Uttar Poorva Transformative Industrialization (UNNATI) Scheme, 2024.

What is the UNNATI Scheme?

The UNNATI is a significant initiative aimed at fostering industrial development and generating employment opportunities in the North East Region of India.
With a focus on promoting manufacturing and services sectors, the scheme aims to stimulate economic growth and uplift the socio-economic landscape of the region.

Employment Generation: UNNATI aims to create productive economic activities that generate gainful employment opportunities, thereby contributing to the overall socio-economic development of the North East Region.
Industrial Development: The scheme seeks to encourage the establishment of industries and the expansion of existing ones, fostering growth and development across various sectors.

UNNATI will operate as a Central Sector Scheme, with funds allocated for both incentives to eligible units (Part A) and implementation and institutional arrangements (Part B).
Part A of the scheme will receive Rs. 9,737 crores, while Rs. 300 crores will be allocated for Part B.

Scheme Period: Effective from the date of Notification until March 31, 2034, along with 8 years of committed liabilities.
Commencement of Production: Eligible industrial units must commence production or operation within 4 years from the grant of registration.
Categorization of Districts: Districts are categorized into Zone A (Industrially Advanced Districts) and Zone B (Industrially Backward Districts) to ensure targeted development.
Funds Allocation: 60% of Part A outlay is earmarked for the 8 North Eastern states, while the remaining 40% follows a First-In-First-Out (FIFO) basis.
Eligibility: New and expanding industrial units are eligible for incentives under the scheme.

The Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, will oversee the implementation of UNNATI.
National and state-level committees, including the Steering Committee and State Level Committee, will monitor implementation, ensure transparency, and facilitate the registration and claims process for incentives.