The term “UNNATI Scheme” can refer to multiple government initiatives. However, the most prominent is the Uttar Poorva Transformative Industrialization Scheme (UNNATI), a central sector scheme launched by the Department for Promotion of Industry and Internal Trade (DPIIT). The scheme is designed to boost industrial growth, attract investment, and create employment in India’s North-Eastern Region (NER).
Apart from the central UNNATI scheme, other initiatives under the same name include:
- UNNATI (Karnataka Social Welfare Program) – Provides entrepreneurship support for SC/ST entrepreneurs through seed capital and market access.
- Project UNNATI (Karnataka MGNREGA Program) – Offers training to rural households who have completed 100 days of MGNREGA work.
In this blog, we have provided the details mainly based on the Uttar Poorva Transformative Industrialization Scheme (UNNATI 2024) and its impact on the North-Eastern region.
Why was the UNNATI Scheme Launched?
The North-Eastern region of India has historically faced challenges in industrial growth due to geographical constraints, limited infrastructure, and low investment levels. The UNNATI Scheme aims to:
- Develop industries in the region to stimulate economic growth.
- Generate employment for local populations.
- Attract new investments while nurturing existing industrial units.
- Promote sustainable and clean industries, such as renewable energy and electric vehicle charging stations, while discouraging environmentally harmful sectors like cement and plastic.
What are the Key Features of UNNATI 2024?
The UNNATI Scheme has several well-defined features to ensure its effective implementation in the North-Eastern states:
| Feature | Details |
| Scheme Duration and Cost | Effective from the date of notification until 31 March 2034, with 8 years of committed liabilities. Total cost: Rs. 10,037 crore for 10 years, with additional provisions for liabilities. |
| Commencement of Production | All eligible industrial units must commence production or operations within 4 years from the date of registration. |
| Zone Classification for Incentives | Districts classified into Zone A (Industrially Advanced) and Zone B (Industrially Backward). Incentives tailored based on the zone to ensure balanced regional development. |
| Funds Allocation | 60% of Part A outlay earmarked for the eight North-Eastern states; 40% allocated on a First-In-First-Out (FIFO) basis. |
| Incentives for Investors | 1. Capital Investment Incentive (CII) – Reimbursement of a percentage of investment in plant and machinery. 2. Central Capital Interest Subvention (CIS) – Subsidy on interest for loans. 3. Manufacturing & Services Linked Incentive (MSLI) – Linked to net GST paid, higher benefits for backward zones. |
| Implementation Strategy | Implemented by DPIIT in collaboration with state governments. Oversight by national and state-level committees to ensure transparency and proper fund utilization. |
Who are the Beneficiaries of the UNNATI Scheme?
The beneficiaries include:
- New Industrial Units – Those establishing operations in the North-Eastern states for the first time.
- Existing Units Undergoing Substantial Expansion – Units expanding production capacity or investing significantly in industrial infrastructure.
This ensures both job creation and sustainable industrial development in the region.
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How is the UNNATI Scheme Funded?
The total budget outlay of Rs. 10,037 crore is allocated over 10 years and includes:
- Incentives for new and existing units.
- Implementation costs.
- Institutional arrangements for monitoring and evaluation.
This large-scale funding demonstrates the central government’s commitment to boosting industrial growth in the North-East.
What Other Government Initiatives Support Industrial Growth in North-East India?
Several other initiatives complement the objectives of UNNATI:
1. PM-DevINE Scheme
- Prime Minister’s Development Initiative for North-East Region (PM-DevINE) was launched in 2022-23.
- It funds infrastructure and social development projects in the North-Eastern states.
2. Advancing North-East Portal
- A digital platform developed by the North Eastern Council (NEC) and North Eastern Development Finance Corporation (NEDFi).
- Provides knowledge, guidance, and opportunities for youth in the region.
3. NESIDS (North East Special Infrastructure Development Scheme)
- Central sector scheme with 100% central funding.
- Receives a renewed outlay of Rs. 8,139.50 crore for 2022-23 to 2025-26.
- Includes two components: Road Infrastructure and Other Than Road Infrastructure (OTRI).
4. RCS-UDAN
- North-East has been prioritized under RCS-UDAN to make air travel more affordable and improve regional connectivity.
These initiatives collectively create an enabling ecosystem for industrialization and employment generation.
How does UNNATI Promote Sustainable and Inclusive Industrial Growth?
UNNATI emphasizes:
- Clean Industries: Renewable energy projects, electric vehicle charging stations.
- Exclusion of Harmful Sectors: Cement, plastic, and other environmentally damaging industries.
- Balanced Regional Development: Incentives for backward districts to reduce industrial disparity.
- Employment Generation: Local populations gain opportunities in both industrial and service sectors.
How Does UNNATI Stand Out Compared to Other Regional Schemes?
The North-Eastern region of India has several government initiatives aimed at promoting industrial growth, social development, and skill enhancement. Among these, the UNNATI Scheme plays a crucial role in fostering industrialization and employment. However, it works alongside other schemes like PM-DevINE, NESIDS, and state-level programs in Karnataka.
Each of these initiatives focuses on specific areas such as entrepreneurship, infrastructure, rural training, or youth guidance. Understanding how UNNATI compares with these schemes helps in appreciating its unique role and the complementary support provided by other government programs.
| Scheme | Focus Area | Key Benefit |
| UNNATI (Central) | Industrial development in NER | Incentives like CII, CIS, MSLI |
| UNNATI (Karnataka Social Welfare) | Entrepreneurship for SC/ST | Seed capital, market access |
| Project UNNATI (Karnataka MGNREGA) | Rural training | Skill development for MGNREGA beneficiaries |
| PM-DevINE | Infrastructure & social projects | Funding for development initiatives |
| NESIDS | Infrastructure | Roads & other essential projects |
| Advancing North-East Portal | Youth guidance | Knowledge, mentorship, digital support |
What Challenges does the UNNATI Scheme Aim to Address in North-East India?
The North-East faces several challenges:
- Low industrialization due to difficult terrain.
- Limited infrastructure including roads, power, and connectivity.
- Employment scarcity for local youth.
- Investment reluctance from private players due to perceived risks.
By providing financial incentives, zoning benefits, and technical support, UNNATI addresses these challenges systematically.
Key Takeaways
| Feature | Details |
| Full Form | Uttar Poorva Transformative Industrialization Scheme |
| Launch Year | 2024 |
| Implementing Agency | DPIIT in collaboration with state governments |
| Total Budget | Rs. 10,037 crore |
| Scheme Period | 2024–2034 with 8 years of committed liabilities |
| Objective | Industrial growth and employment generation in North-East India |
| Incentives | CII, CIS, MSLI |
| Beneficiaries | New and expanding industrial units in NER |
| Zone Classification | Zone A (Advanced), Zone B (Backward) |
| Complementary Schemes | PM-DevINE, NESIDS, Advancing North-East Portal, RCS-UDAN |
Also Check:
Questions Based on UNNATI Scheme
- What is the primary objective of the UNNATI Scheme?
a) Promote agriculture in North-East
b) Industrial development and employment generation
c) Urban infrastructure development
d) Digital literacy
Answer: b - Which government department implements the UNNATI Scheme?
a) NITI Aayog
b) Ministry of Rural Development
c) DPIIT
d) Ministry of Power
Answer: c - What is the total outlay of the UNNATI Scheme?
a) Rs. 5,000 crore
b) Rs. 8,139.50 crore
c) Rs. 10,037 crore
d) Rs. 12,000 crore
Answer: c - How long do eligible industrial units have to commence production?
a) 2 years
b) 3 years
c) 4 years
d) 5 years
Answer: c - Which of the following is NOT encouraged under UNNATI?
a) Renewable energy projects
b) Electric vehicle charging stations
c) Cement industries
d) Manufacturing industries
Answer: c - What percentage of Part A outlay is earmarked for the eight North-Eastern states?
a) 40%
b) 50%
c) 60%
d) 70%
Answer: c - Which scheme provides a platform for youth guidance in the North-East?
a) PM-DevINE
b) Advancing North-East Portal
c) NESIDS
d) Project UNNATI
Answer: b - Which zones are defined under UNNATI for industrial incentives?
a) Zone 1 and Zone 2
b) Zone X and Zone Y
c) Zone A and Zone B
d) Zone North and Zone South
Answer: c - Which Karnataka program under the name UNNATI focuses on SC/ST entrepreneurship?
a) Project UNNATI
b) UNNATI Social Welfare Program
c) MGNREGA UNNATI
d) PM-DevINE
Answer: b - Which complementary scheme focuses on North-East road and other infrastructure?
a) RCS-UDAN
b) NESIDS
c) Advancing North-East Portal
d) UNNATI Karnataka
Answer: b
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