Union Cabinet nod for Rs 10,037 crore ‘UNNATI’ scheme for industrial promotion of NE
The Union Cabinet on Thursday approved a Rs 10,037-crore new industrial development scheme – Uttar Poorva Transformative Industrialization Scheme for the promotion of industry and internal trade for 10 years from the date of notification along with 8 years for committed liabilities at a total cost of Rs.10,037 crore.
A meeting of the Union Cabinet chaired by Prime Minister Narendra Modi announced a series of incentives for setting up new units or undertaking significant expansion of the existing units.
The financial outlay of the proposed scheme is Rs 10,037 crore for the scheme period from the date of notification for 10 years. (Additional 8 years for committed liabilities) for the Central Sector Scheme.
The scheme is proposed to be divided into two parts. Part A caters to the incentives to the eligible units (Rs 9737 crores), and Part B, is for implementation and institutional arrangements for the scheme. (Rs 300 crore).
Under the new scheme, the GST will be applicable for the units under Zone A with 30% of the eligible value of investment in plant and machinery/construction of building & durable physical assets with a cap of Rs 5 cr.
Under Zone B, the GST will be applicable for the units with 50% of the eligible value of investment in plant and machinery/construction of building & durable physical assets with a cap of Rs 7.5 crore.
The GST will not be applicable for Zone A units with 30% of the eligible value of investment in plant and machinery/construction of building & durable physical assets with a cap of Rs 10 crore.
The GST will also not be applicable for the units under Zone B with 50% of the eligible value of investment in plant and machinery/construction of building & durable physical assets with a cap of Rs 10 crore.
The proposed scheme envisages approximately 2180 applications, and it is anticipated that direct employment opportunities of about 83,000 will be generated during the scheme period. A significant number of indirect employment is also expected to be generated.
The scheme will be effective from the date of notification and up to March 31, 2034, along with 8 years of committed liabilities.
Industrial units will be allowed to apply for registration from the date of notification up to March 31, 2026.
Under the scheme, all registration applications shall have to be disposed of by March 31, 2027. All eligible industrial units to commence their production or operation within 4 years from the grant of registration.
Districts are categorized in two zones – Zone A (industrially advanced districts) & Zone B (industrially backward districts).
60% of the outlay of Part A has been earmarked to 8 northeastern states and 40% on a First-In-First-Out (FIFO) basis. Out of the 60% outlay, Rs. 2,434 crores has been earmarked for Assam.
For Micro industries (defined as per MSME industry norms), the P&M calculation will include the building construction and P&M costs for Capital Investment Incentive.
All new industrial units and expanding units would be eligible for the respective incentives.
DPIIT will implement the scheme in cooperation with the states. Implementation will be overseen by following committees at the national and state levels.
The Steering Committee, headed by the Union secretary, DPIIT (SIIT), will decide upon any interpretation of the scheme within its overall financial outlay and issue detailed guidelines for execution.
The state-level committee, headed by the state’s chief secretary, will monitor implementation, checks and balances, ensuring transparency and efficiency.
The secretary-level committee, headed by the senior secretary of the state (industries), will be responsible for implementing the scheme, including the recommendation of registration and incentives claims.
Facebook
Instagram
Youtube
Twitter
Leave a Reply