UNNATI Scheme DPR

UNNATI Scheme: Empowering North East India’s Industrial Transformation

The Uttar Poorva Transformative Industrialization Scheme (UNNATI), launched in 2024 by the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, aims to catalyze the industrial growth of North Eastern Region (NER) states. This targeted initiative offers a range of financial and infrastructural support to entrepreneurs and businesses, fostering a vibrant industrial ecosystem in the region.

Key Objectives of UNNATI Scheme:

• Accelerate Industrial Development: UNNATI seeks to attract significant investments into NER, promoting the establishment of new industrial units and the expansion of existing ones.
• Enhance Employment Opportunities: By fostering industrial growth, the scheme aims to create a substantial number of jobs for the skilled and unskilled workforce in NER.
• Boost Regional Infrastructure: UNNATI emphasizes the development of critical infrastructure, including roads, power, and communication networks, to support industrial activities.
• Promote Balanced Development: The scheme strives to ensure balanced industrial development across all NER states, fostering equitable growth and economic prosperity.

Eligibility Criteria for UNNATI Scheme:

• Industry Focus: UNNATI primarily targets the following sectors:
  • Food processing
  • Textiles
  • Apparel
  • Leather
  • Tourism & Hospitality
  • Warehousing & Logistics
  • Electronics
  • Automobiles & Components
  • Pharmaceuticals & Chemicals
  • Light Engineering & Machinery
  • Agro & Rural Industries
  • Bamboo & Cane Industries
  • Bio-Technology
• Enterprise Type: The scheme is open to:
  • New industrial units
  • Existing units undertaking substantial expansion
• Location: The project must be located in any of the eight NER states: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.
• Investment Threshold: The minimum project investment for availing benefits under UNNATI is:
  • ₹ 10 crore for projects located in hilly states (Arunachal Pradesh, Meghalaya, Mizoram, Nagaland, and Sikkim)
  • ₹ 5 crore for projects located in plain states (Assam, Manipur, and Tripura)

Benefits Offered by UNNATI Scheme:

• Capital Subsidy: UNNATI provides a capital subsidy of 20-30% of the project cost, with a maximum limit depending on the project location and category.
• Interest Subsidy: The scheme offers an interest subsidy of 3% on term loans availed from financial institutions for project implementation.
• GST Reimbursement: UNNATI facilitates reimbursement of Central and State GST for a specified period.
• Income Tax Exemption: Eligible units can benefit from income tax exemption for a certain period under Section 37A of the Income Tax Act.
• Special Package for Anchor Units: UNNATI offers a special package of incentives for anchor units, which are large-scale industries that can attract ancillary and downstream units.
• Infrastructure Support: The scheme encourages the development of industrial parks and estates with necessary infrastructure facilities.

Application Process for UNNATI Scheme:

1. Project Identification: Identify a viable industrial project that aligns with the scheme’s objectives and eligible sectors.
2. Project Preparation: Prepare a Detailed Project Report (DPR) outlining the project’s feasibility, market potential, financial projections, and implementation plan.
3. Online Application: Submit the DPR and other required documents through the online portal of the Department of Industries & Commerce (DIC) in the concerned NER state.
4. State Level Scrutiny: The DIC will assess the application and forward it to the State Level Empowered Committee (SLEC) for evaluation.
5. SLEC Approval: The SLEC will review the application and recommend projects for approval to the DPIIT.
6. DPIIT Sanction: Upon SLEC recommendation, the DPIIT will grant final approval for the project and disburse the financial incentives.

Additional Considerations for Entrepreneurs:

• Scheme Guidelines: Thoroughly review the official UNNATI Scheme guidelines available on the DPIIT website (https://unnati.dpiit.gov.in/) to ensure project eligibility and compliance.
• State-Specific Variations: While the core benefits remain consistent, some NER states might have additional incentives or variations in eligibility criteria. It’s advisable to consult the respective state DIC for detailed information.
• Professional Support: Consider seeking assistance from projectzo consultant to navigate the application process and ensure a strong DPR.