The Uttar Poorva Transformative Industrialization Scheme (UNNATI) 2024 is an innovative initiative by the Government of India designed to accelerate industrial growth in the North-Eastern region. One of the key incentives under this scheme is the Manufacturing and Services Linked Incentive (MSLI). This blog post provides an in-depth understanding of MSLI, 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 Manufacturing and Services Linked Incentive (MSLI)
- Eligibility Criteria
- Benefits of Manufacturing and Services Linked Incentive (MSLI)
- Application Process for Registration
- Claim Process for MSLI
- Conclusion
Understanding Manufacturing and Services Linked Incentive (MSLI)
The Manufacturing and Services Linked Incentive (MSLI) under UNNATI 2024 is designed to provide financial incentives to new industrial units for their investment in plant and machinery (for the manufacturing sector) or construction of buildings and other durable physical assets (for the service sector). This incentive aims to enhance the industrial output and service quality in the North-Eastern states, including Assam.
Eligibility Criteria
To benefit from the MSLI, industrial units must meet specific eligibility criteria, ensuring that the incentives are targeted at businesses that can significantly contribute to the region’s development.
New Units Only
- New Units: Only new industrial units registered under the scheme on or after 09.03.2024 but not later than 30.09.2026 are eligible. Such units must commence commercial production within four years from the date of grant of registration.
Geographical Location
- Units must be located in either Zone A (Industrially Advanced Districts) or Zone B (Industrially Backward Districts) within the North-Eastern Region, which includes several districts in Assam.
Investment Eligibility
- The upper limit of incentive under this component shall be 75% for Zone A and 100% for Zone B of the eligible value of investment made in plant and machinery (for the manufacturing sector) or construction of building and other durable physical assets (for the service sector).
Benefits of Manufacturing and Services Linked Incentive (MSLI)
The MSLI offers substantial financial incentives to new industrial units, varying based on their geographical location:
Zone A (Industrially Advanced Districts)
- Eligible units in Zone A will receive an incentive equal to 100% of the Net GST paid (GST Paid less Input Tax Credit) for a maximum period of 10 years from the date of commencement of commercial production/operation or until the validity of the scheme, whichever is earlier.
Zone B (Industrially Backward Districts)
- Eligible units in Zone B will receive an incentive equal to 100% of the Net GST paid (GST Paid less Input Tax Credit) for a maximum period of 10 years from the date of commencement of commercial production/operation or until the validity of the scheme, whichever is earlier.
Application Process for Registration
To avail of the MSLI, businesses must go through a detailed registration process. Here’s a step-by-step guide:
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 MSLI
After registration and commencement of commercial production, units can proceed with claiming the MSLI. The claim process involves several steps to ensure transparency and accuracy.
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
- Claims for MSLI must be submitted online on a quarterly basis. Required documents include:
- Copy of acknowledgment of Date of commercial production approved by General Manager of the concerned DIC for the first claim only.
- Monthly/quarterly GST returns as applicable, along with the claim.
- Annual GST return and audited balance sheet of the relevant Financial Year will be uploaded along with the claim application for the 4th Quarter.
- As per Annexure-XII, an Affidavit must be submitted with the MSLI claim application.
- Undertaking from the applicant that the unit has not availed of a similar incentive from any other State/Government of India departments.
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 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 Manufacturing and Services Linked Incentive (MSLI) under the UNNATI 2024 scheme provides a significant financial boost to new industrial units in the North-Eastern region, especially in Assam. By reducing the effective cost of investments through GST-linked incentives, this scheme aims to encourage the establishment and growth of industries. Businesses looking to leverage this incentive should thoroughly 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 website or contact us.