Indian government allocates Rs 2,434 crore to Assam under industrialization scheme

The Government of India has allocated Rs 2,434 crores to Assam under the Uttar Poorva Transformative Industrialization Scheme. 

This allocation is a part of the 60% outlay that has been earmarked for the eight North Eastern states, with the remaining 40% to be allocated on a First-In-First-Out (FIFO) basis.

The Union Cabinet chaired by Prime Minister Narendra Modi approved the proposal of the Ministry of Commerce and Industry, Department for Promotion of Industry and Internal Trade for Uttar Poorva Transformative Industrialization Scheme, 2024 (UNNATI – 2024) for a period of 10 years from the date of notification along with 8 years for committed liabilities at a total cost of Rs.10,037 crore.

Salient features of the scheme:

i.     Scheme period: The scheme will be effective from the date of Notification and up to 31.03.2034 along with 8 years of committed liabilities.

ii.    Application period for registration: Industrial unit will be allowed to apply for registration from the date of notification up to 31.03.2026

iii.  Grant of registration: All applications for registration shall have to be disposed of by 31.03.2027

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iv.  Commencement of Production or operation: All eligible Industrial Units to commence their production or operation within 4 years from the grant of registration.

v.    Districts are categorized in two zones: Zone A (Industrially Advanced Districts) & Zone B (Industrially Backward Districts)

vi.  Earmarking of funds: 60% of the outlay of Part A has been earmarked to 8 NE states and 40% on a First-In-First-Out (FIFO) basis.

vii. 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.

viii. All new Industrial units and Expanding units would be eligible for the respective incentives.

The government of India has formulated the New Industrial Development Scheme, UNNATI (Uttar Poorva Transformative Industrialization Scheme), 2024 as a Central Sector Scheme for the development of Industries and generation of employment in the states of the Northeast region. The scheme's main objective is to generate gainful employment, which will lead to the area's overall socio-economic development.  It will create productive economic activity in the manufacturing and service sectors.

Industrial development in the NER needs to be given a fresh thrust with an emphasis on job creation, skill development, and sustainable development by attracting new investments and nurturing existing ones. However, to maintain a proper balance between industrial growth and the pristine environment of the NER, certain industries are kept in the positive list such as Renewable energy, EV charging stations etc and there is a Negative list for certain sectors which may hamper the environment such as cement, plastic etc.