UNNATI Scheme 2024 — Capital Subsidy & GST Incentives for North-East India

The Uttar Poorva Transformative Industrialization Scheme, 2024 — commonly shortened to UNNATI — is a subsidy programme of the Government of India, administered by the Ministry of Commerce and Industry. Its purpose is to speed up industrial development across the North-Eastern Region, a part of the country that has historically attracted far less manufacturing and service investment than the rest of India.

UNNATI attacks two of the heaviest cost blocks a new unit faces. The first is the money sunk into plant and machinery, which the scheme partly reimburses. The second is the interest bill on borrowed capital, which the scheme reduces for a fixed number of years. A third component returns a share of the GST a unit pays, which lifts operating margins once production is running.

The programme is open to both greenfield projects and existing businesses that want to expand. Support levels depend on which zone a unit falls under — units in Zone B receive a higher rate of assistance than those in Zone A.

There is no closing date. Applications are accepted on a rolling basis and are filed entirely online through the official scheme portal.

• Capital investment incentive of 30% of plant & machinery cost in Zone A and 50% in Zone B.
• Capital interest subvention of 3% (Zone A) and 5% (Zone B) on loans, for 7 continuous years.
• GST-linked incentive equal to 100% of net GST paid, available for up to 10 years.
• Rolling applications — no fixed deadline, apply anytime through the official portal.
• Open to new and expanding manufacturing and service units across the eight North-Eastern states.

UNNATI is aimed at businesses that are either setting up fresh operations or expanding existing ones in the North-Eastern Region, in the manufacturing or service sector. The scheme covers Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.

Beyond being in the right sector and the right part of the country, an applicant has to clear a set of conditions laid down in the scheme guidelines:

• Minimum investment threshold — the proposed project must meet the investment floor specified in the guidelines.
• Recognised legal entity — the applicant must be a registered company or enterprise of a form the scheme accepts.
• Registered lease deed — a valid lease deed is required for the premises where the unit will operate.
• Current GST details — the business must have up-to-date GST registration and records.
• Statutory and environmental compliance — applicable environmental and other regulatory clearances must be in place.
• Full documentation — a Detailed Project Report (DPR) covering the business plan and financial projections, along with Bank Appraisal Reports and financial statements, must be submitted to establish the project's viability.

Because eligibility is assessed against the detailed scheme guidelines, applicants should check each condition before filing.

UNNATI Scheme 2024 — Capital Subsidy & GST Incentives for North-East India is open to startups at any stage. It is open to startups registered anywhere in India.

UNNATI Scheme 2024 — Capital Subsidy & GST Incentives for North-East India accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

UNNATI support is delivered through three separate incentives, which together lower both the setup cost and the running cost of a unit.

Capital Investment Incentive (CII) — a capital subsidy calculated on the eligible cost of plant and machinery. Units in Zone A get 30% of that cost, while units in Zone B get 50%. This offsets part of what a business spends on buying or expanding its equipment.

Capital Interest Subvention (CIS) — a reduction in the interest charged on loans. Zone A units receive 3% off and Zone B units receive 5% off, applied continuously for 7 years. The effect is a lower cost of borrowing and better cash flow through the early years of a project.

Manufacturing & Services Linked Incentive (MSLI) — a benefit equal to 100% of net GST paid, where net GST means GST paid minus input tax credit. Units in either zone can claim it, for a maximum of 10 years from the date commercial production or operations begin, or until the scheme's validity ends — whichever comes first.

The scheme is a subsidy programme, so the support takes the form of capital grants and cost concessions rather than investment against a share of the business.

UNNATI Scheme 2024 — Capital Subsidy & GST Incentives for North-East India is offered by Ministry of Commerce and Industry, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

Applications are not approved on a first-come basis. Each one passes through several layers of scrutiny before a decision is taken.

• Preliminary screening — the first check confirms that the applicant meets the basic eligibility conditions and has submitted the required documentation.
• Technical and financial appraisal — a dedicated committee then examines the Detailed Project Report, the bank appraisal documents and the remaining submissions in depth.
• Committee assessment — this panel, which draws on subject experts and government representatives, evaluates how viable the project is, how much industrial growth and employment it can generate, and how well it aligns with the scheme's objectives.
• Further verification — shortlisted proposals may be asked for additional information or be subject to a site visit.
• Final approval — the competent authority takes the final decision on which projects are supported.

Before you apply to UNNATI Scheme 2024 — Capital Subsidy & GST Incentives for North-East India, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.