The Uttar Poorva Transformative Industrialization Scheme (UNNATI) 2024 is a groundbreaking initiative aimed at accelerating industrial development in the North-Eastern region of India. One of the key components of this scheme is the Capital Investment Incentive (CII). This incentive is designed to support both new and expanding industrial units by providing substantial financial benefits for their capital investments. In this blog post, we will delve into the details of the CII, including eligibility criteria, benefits, the application process for registration, and the claim process, with a focus on how businesses in Assam can benefit from this subsidy.
Table of Contents
- Understanding Capital Investment Incentive (CII)
- Eligibility Criteria
- Benefits of Capital Investment Incentive (CII)
- Application Process for Registration
- Claim Process for CII
- Conclusion
Understanding Capital Investment Incentive (CII)
The Capital Investment Incentive (CII) under UNNATI 2024 is a financial incentive provided to eligible industrial units to encourage investment in plant and machinery (for the manufacturing sector) or construction of buildings and installation of durable physical assets (for the service sector). This incentive aims to reduce the financial burden on businesses, thereby fostering an environment conducive to industrial growth and development in the North-Eastern states, including Assam.
Eligibility Criteria
To qualify for the Capital Investment Incentive (CII), industrial units must meet specific eligibility criteria. These criteria ensure that the benefits are directed towards genuinely deserving businesses that can contribute significantly to the region’s industrial ecosystem.
Contact us for a free eligibility check!
New and Expanding Units
- New Units: Industrial units registered under the scheme on or after 09.03.2024 but not later than 30.09.2026. Such units must commence commercial production within four years from the date of grant of registration.
- Expanding Units: Existing units undertaking substantial expansion with an additional investment of at least 25% of the total amount of investment already made in plant and machinery or construction of building and other durable physical assets.
Geographical Location
- Units located in both Zone A (Industrially Advanced Districts) and Zone B (Industrially Backward Districts) within the North-Eastern Region are eligible. This includes several districts in Assam.
Minimum Investment Requirements
- Manufacturing Sector: Minimum investment of Rs. 1 crore in plant and machinery.
- Service Sector: Minimum investment of Rs. 50 lakhs in building and other durable physical assets.
- For micro-industries, the minimum investment limit is Rs. 50 lakhs for both sectors, including the cost of building construction.
Compliance with Environmental Standards
- Units must comply with applicable environmental standards and possess the necessary clearances from relevant authorities.
Benefits of Capital Investment Incentive (CII)
The CII offers substantial financial benefits, which vary based on the geographical location of the unit:
Zone A (Industrially Advanced Districts)
- Eligible units receive an incentive of 30% of the eligible investment in plant and machinery or construction of building and durable physical assets, with a maximum limit of Rs. 5 crore.
- For sectors where GST is not applicable, the maximum limit is Rs. 10 crore.
Zone B (Industrially Backward Districts)
- Eligible units receive an incentive of 50% of the eligible investment, with a maximum limit of Rs. 7.5 crore.
- For sectors where GST is not applicable, the maximum limit is Rs. 10 crore.
Application Process for Registration
Applying for the Capital Investment Incentive (CII) involves several steps to ensure that only genuinely deserving units receive the benefits. Here is a step-by-step guide to the application process:
Online Registration
- Units must register through the online portal (unnati.dpiit.gov.in) using the prescribed forms.
Document Submission
- Detailed Project Report (DPR)
- Land documents (ownership/rent/lease deed)
- Appraisal report from a bank or NEDFi
- Certificate of incorporation
- GSTIN certificate
- Udyam Registration/Entrepreneurs Memorandum I
- Any other required documents
Field Verification
- A designated field visit team will inspect the unit to verify the existence and installation of plant and machinery or construction of buildings and durable physical assets.
Approval Process
- The application will be processed and recommended by the District Industry Centre (DIC) and subsequently reviewed by the Secretary-Level Committee at the state level.
- Finally, the Department for Promotion of Industry and Internal Trade (DPIIT) will grant approval and issue the registration certificate.
Registration Certificate
- DPIIT will issue registration certificates to the approved industrial units through the online portal.
Claim Process for CII
Once the unit is registered and the necessary investments are made, the next step is to claim the Capital Investment Incentive. The claim process is as follows:
Intimation of Commercial Production/Operation
- Units must intimate the actual date of commercial production/operation along with supporting documents through the portal within 30 days of the date of commercial production.
Submission of Claim
- The claims for Capital Investment Incentive (CII) must be submitted online through the portal to the concerned DIC within one year from the date of commercial production/date of registration, whichever is later.
- Required documents include the CA certificate, bank’s mode of payment certificate, deviation report, statement of plant and machinery, installation certificate, field visit report, and any other necessary certificates.
Field Verification and Report
- A designated field visit team will inspect the unit to verify the physical existence of plant and machinery or building and other durable physical assets and production/operation undertaken by the unit.
- The team will submit a field visit report online through the portal.
Approval by Secretary-Level Committee
- The DIC will process the case and forward it to the Director (I&C Department) of the concerned State Government, specifying the value of the eligible plant and machinery/building and other durable physical assets and eligible incentive amount.
- The Secretary-Level Committee will review and approve the claims, which are then forwarded to DPIIT for final approval.
Disbursement of Incentive
- Upon approval by DPIIT, the incentive amount will be disbursed through the North-Eastern Development Financial Corporation Ltd. (NEDFi) directly to the unit’s bank account.
Conclusion
The Capital Investment Incentive (CII) under the UNNATI 2024 scheme is a significant opportunity for businesses in the North-Eastern region, particularly in Assam, to enhance their industrial capacity. By reducing the financial burden on new and expanding units, this incentive aims to foster a robust industrial ecosystem, attract new investments, and ultimately drive economic growth in the region. Businesses looking to leverage this incentive should carefully review the eligibility criteria, prepare the necessary documentation, and ensure timely application to maximize their benefits.
For more detailed information and assistance with the application process, businesses can visit our official website: SubsidySeva.