Guidelines
Guidelines
Guidelines
1. Scheme Title: This Scheme will be called Uttar Poorva Transformative Industrialization
Scheme (UNNATI), 2024.
2. Coverage: The Scheme will cover all 8 North-Eastern States, namely Arunachal Pradesh,
Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.
3. Commencement and Duration of the Scheme: It will be effective from 09.03.2024 and will
remain in force up to and inclusive of 08.03.2034 and 8 more years for meeting committed
liabilities.
4. Brief about the Scheme: UNNATI, 2024 is designed to strengthen the Industrial Eco-System
in the North East and attract New Investment. The Scheme is divided into two parts i.e Part A and
Part B
4.1. Part A: Part A provides incentives to eligible new industrial units and those undergoing
substantial expansion. Part A will have three components namely Capital Investment Incentive
(CII), Central Interest Subvention (CIS), and Manufacturing & Services Linked Incentive (MSLI)
4.2. Part B: Part B is for developing an industrial eco-system through activities such as (i) Project
Monitoring Unit (PMU) and Project Implementation Unit (PIU); (ii) Third Party Evaluation and
Impact Assessment; and (iii) Portal Development (aligned with National Single Window System,
NSWS), Capacity Building workshops, IEC and others as decided by the Steering Committee
5. Application period for registration: Registration shall commence from 09.03.2024 and will
continue till 31.03.2026 subject to the guidelines issued in this regard. 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. Further, details for registration will be issued separately in registration guidelines of the
scheme.
5.1. Merely applying for registration will not entitle any applicant to claim incentives under
this scheme. Further details for claiming incentives shall be provided in the claim guidelines of this
scheme.
5.2. No unit will have the right to register under this scheme or claim the benefits unless it is
specifically approved by the competent authority as laid out in the guidelines.
5.3. The registration will be granted by the competent authority as laid out in the guidelines, which
will, inter alia, consider the prima facie eligibility of the unit and availability of approved funds.
5.4 All units willing to avail of incentive(s) under this scheme have to apply for registration
through the online portal.
6. Grant of registration: All registration applications shall be disposed of by 30.09.2026 unless
otherwise extended.
7. Definitions:
7.1. ‘Approved Funds’ means financial outlay allocated under Parts A and B of this Scheme.
7.2. ‘Arm’s length price’ as defined under the provisions of the Income Tax Act,1961.
7.3 (a) ‘Unit’ means any industrial manufacturing entity or service sector enterprise registered
under Goods & Service Tax Act, 2017 excluding the Industrial Unit in which Government has more
than 50% stake/shareholding.
7.3 (b) ‘New Unit’
i. For the manufacturing 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.
ii. For the 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 operation within 4
years from the date of grant of registration.
8.10. 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.
8.11. The beneficiary of this scheme has to furnish an undertaking to abide by the terms and
conditions of the scheme. The format of undertaking shall be provided in registration guideline.
8.12. Eligibility under this scheme will be subject to verification of investment (core and non-
core) in plant and machinery (in the manufacturing sector) and cost of construction of building and
other durable physical assets (in the service sector). However, the incentive will be eligible only
for core segment in both manufacturing and service sector. Details will be laid down in the
guidelines.
9. Nodal agency
The North-Eastern Development Financial Corporation Ltd. (NEDFi) will be the nodal agency for
the disbursal of incentives under various components of the scheme. The nodal agency will release
incentives only through e-transfer to the designated bank accounts of eligible units.
10. Governance and Implementation Mechanism
10.1 The scheme will be implemented under the supervision of the Government of India i.e. the
Department for Promotion of Industry & Internal Trade (DPIIT) and implement through
State machinery with the support of Project Monitoring Unit (PMU) and Project
Implementation Unit (PIU)
10.2 Committees constituted for governance and implementation of this scheme, along with
their Power and function, are as follows:
10.2.1. The Steering Committee:
a) Constitution
i. Secretary, DPIIT as Chairperson
ii. Representative of Ministry of Development of North-Eastern Region
iii. Representative of the Ministry of Environment, Forest and Climate Change
iv. Representative of the Ministry of Micro, Small, and Medium Enterprises
v. Representative of NITI AAYOG
vi. Representative of CBIC
vii. Additional Secretary and Financial Advisor (AS&FA), DPIIT
viii. Chief Secretary/Principal Secretary of all North-Eastern States
ix. Joint Secretary, DPIIT, in charge of North-East Region Schemes Section
x. Special members can be invited from various Ministries if required
b) Power and functions:
i. The Steering Committee will monitor the smooth implementation and issue detailed
guidelines for execution, and issue clarifications whenever interpretational issues arise.
ii. The Committee will decide on the proposals for implementation, monitoring and IT support
as per needs and contingencies under the administrative cost component.
iii. The Committee shall also utilize the services of the Central Board of Indirect Tax and
Customs (CBIC) and Central Board of Direct Tax (CBDT) and shall periodically invite
appropriate officers like jurisdictional Chief Commissioners of GST, Income Tax, and
Commissioner of GST as Special Invitees, for seeking their inputs with particular emphasis
on preventing fraudulent or non-genuine claims.
iv. The Committee will get done inspections to prevent misuse of the Scheme through the
engagement of an independent third party or empanelment of qualified personnel for
verification.
v. The detailed guidelines on eligibility under the service sector (including Homestays,
Adventure Tourism, Eco-Tourism, Waste Management, and Vocational Education) shall be
issued by the Steering Committee.
vi. Decision-making on the proposals for Part B of the Scheme.
vii. The Committee shall be authorized to amend the categorization of districts into Zone A and
Zone B. However, this amendment in Zone A and Zone B categorization shall be in
consultation with the North-Eastern States.
viii. The outlay for Part A and Part B is fungible and can be done at the discretion of the Steering
Committee with the approval of the Department of Expenditure.
ix. 60% of the outlay of Part A is earmarked to the states and can be changed between the states
at the discretion of the Steering Committee with the approval of the Department of
Expenditure, under exceptional circumstances and with reasonable justification.
10.2.2. The State Level Committee:
a) Constitution:
i. Chief Secretary of the state as Chairperson
ii. Sr. most State Secretary, Department of Industries
iii. Sr. most State Secretary, Department of Finance
iv. Representative of DPIIT (not below the rank of Under Secretary)
v. Any other member(s) representing the relevant sectors related to the projects under
consideration may be nominated by the Chief Secretary as Special Invitee(s)
b) Power and functions: The State Level Committee will also monitor the overall implementation
of the Scheme and put in place proper checks and balances for ensuring transparency and
efficiency in processing and approval of claims under the Scheme to avoid, inter-alia,
duplication of release of any incentive under the Scheme. Details of further delegation of powers
for granting registration of unit, processing and sanction of claims will be worked out while
preparing the detailed guidelines of the scheme.
10.2.3. Project Management Unit (PMU) and Project Implementation Unit (PIU):
Project Management and monitoring shall be done by DPIIT by deputing its own officers as well as
independent third-party random checks to ensure compliance with all notifications and guidelines
under the scheme. An appropriate Project Management Agency (PMA) shall be appointed at DPIIT
level to assist them in project management ensuring timely implementation and smooth monitoring
and evaluation of the project. 100% grant will be provided by Government of India towards
expenditure incurred on PMA as per provision in the scheme i.e. up to 0.4 % of total outlay.
Similarly, there will be a PIU appointed for each state by DPIIT and DPIIT will bear the costs up to
0.6% of the sanctioned outlay. The respective states have to bear any cost beyond the sanctioned
outlay (which would be divided on a similar basis as earmarked funds), if any, from their own
resources. The major roles and responsibilities of PMU & PIU are at Annexure- III.
11. Incentives under the Scheme:
Subject to eligibility, the following incentives are provided under this scheme:
i. Capital Investment Incentive (CII)
ii. Capital Interest Subvention (CIS)
iii. Manufacturing & Services linked incentive (MSLI)
11.1.1 Capital Investment Incentive (CII):
a) Eligibility:
The following units will be eligible to avail of this incentive:
i. New units, as well as Expanding units will be eligible to avail of this incentive in both Zone
A and Zone B.
ii. An applicant (with the same name and GST number) can get incentives on maximum of
one unit or application under this scheme in each state
b) All eligible units located in Zone A District in the States of North-Eastern Region will be
provided Capital Investment Incentive @30% of the eligible investment made in plant and
machinery (for the manufacturing sector) or for construction of building and installation of other
durable physical assets (for services sector) with a maximum limit of Rs. 5.00 crore. For those
sectors where GST is not applicable, the maximum limit of this incentive will be Rs. 10.00
crore.
c) All eligible units located in Zone B category blocks in the States of North-Eastern Region will
be provided Capital Investment Incentive @50% of the eligible investment made in plant and
machinery (for manufacturing), or for construction of building and installation of other durable
physical assets (for services sector) with a maximum limit of Rs.7.50 crore. For those sectors
where GST is not applicable, the maximum limit of this incentive will be Rs. 10.00 crore.
d) A new unit registered under the scheme will not be eligible to avail of the benefit under
substantial expansion. A unit can avail of this incentive only once under the scheme.
e) Physical verification of the units is mandatory before availing of this incentive.
f) Detailed procedures for availing of the incentive shall be laid down in the guidelines.
F. No. P-44015/1/2023-DBA-II
The following manufacturing industries will not be eligible for benefits under Uttar Poorva
Transformative Industrialization Scheme (UNNATI), 2024 for the North-Eastern Region:
i. All goods falling under Chapter 24 of the Central GST Tariff Act, 2017 which pertains to
tobacco and manufactured tobacco substitutes.
ii. Pan Masala as covered under Chapter 24 of the Central GST Tariff Act, 2017.
iii. Plastic carry bags of less than 20 microns as specified by Ministry of Environment and
Forests Notification No. S.O. 705(E) dated 02.09.1999 and S.O. 698(E) dated 17.6.2003 and
any subsequent amendments.
iv. Goods falling under Chapter 27 of the First Schedule to the Central Excise Tariff Act, 1985
(5 of 1986) produced by Petroleum or Gas refineries.
v. Plantation, Refineries and Power Generating Units (that are fossil-fuel based).
vi. Units not complying with environmental standards or not having applicable Environmental
Clearance from M/o Environment & Forests and Climate Change or State Environmental
Impact Assessment Authority (SEIAA) or not having requisite consent to establish and
operate from the concerned Central Pollution Control Board/State Pollution Control Board.
vii. Low-value addition activities in goods such as preservation during storage, cleaning,
operations, packing, repacking or re-labelling, sorting, alteration of retail sale price etc.
excluding high-value packaging and processing.
viii. Cement Industry
ix. Arms & Ammunition
x. Any other industry or activity placed in negative list through a separate notification as and
when considered necessary by the Steering Committee
Annexure-II
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:
Any other industry or activity placed in positive list through a separate notification as and
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when considered necessary by the Steering Committee
Annexure-III
▪ Deploy resources at DPIIT, New Delhi for effective implementation of the scheme.
▪ Capturing, analysis of data and preparation of reports for tracking status of the scheme.
▪ Financial review to track progress of the scheme on behalf of DPIIT.
▪ Coordinate with technical design & development agency and provide inputs for
maintenance of online platform and creation/maintenance of dashboard for the scheme.
▪ Evaluation of implementation of various components of the scheme at regular intervals.
▪ Monitoring of physical and financial progress for each approved component and monitor
the same on a periodical basis.
▪ Coordinate with State government, NEDFi (disbursing agency) and PIU for effective
implementation of the scheme at ground level.
▪ Screening of Documents & Claims and physical inspection on behalf of DPIIT for randomly
picked up cases, as and when required based on direction of DPIIT.
▪ Capacity building activities at central and state level.
▪ Any other function specially assigned by DPIIT.
• Assist the concerned state department and other stakeholders in undertaking steps necessary
for evaluation of specific applications and obtaining the final decision of the Competent
Authority for forwarding the cases/applications to DPIIT for grant of registration and
disbursement of incentives.
• Assist the concerned state government departments in verifying the information filed in the
registration and claim applications.
• Undertake development of implementation plan in coordination with the state government
departments to collate and disseminate information regarding the scheme, related
guidelines, registration and claim process.
• Coordinate with Nodal officers of concerned departments at state level for sector specific
projects.
• Understanding training requirements of various stakeholders at the state level including
government officials, agencies and investors.
• End-to-end organizing & management of knowledge sharing workshops with the state
government officials at district level, potential investors and applicants.
• Assisting PMU team at central level in creation of knowledge and training collaterals.
• Hold awareness workshops for investors at district level.
• Identify key bottlenecks in application and claim process at state and district level. Assist
officials at district/DIC level in resolution of challenges and bottlenecks encountered during
appraisal of applications.
• Periodically organise camps at districts/DIC level to fast-track application and claim
processes.
• Carrying out the necessary activities for Investment Promotion.
• Any other function specially assigned by DPIIT.