Eligible Units: - For both New and Expanding Units

The Capital Investment Incentive, is a special financial benefit provided for eligible businesses that are either new or expanding. For manufacturing, minimum investment of INR 1.00 Crore and for service units, minimum investment of INR 50.00 Lakh in eligible value of building and all other durable physical assets is mandated respectively. For Micro industries, the minimum investment limit shall be INR 50 lakhs for both manufacturing and service sector.

An industrial unit will be considered as an ‘Expansion’ only if the cost of new P&M required is at least 25% of the total investment in the unit.

All eligible units located in Zone A category blocks in the States of North Eastern Region will be provided Capital Investment Incentive @30% of the investment made in plant and machinery (for the manufacturing sector) or for construction of building and installation of other durable physical assets (for services sector) with a maximum limit of Rs. 5.00 crore. For those sectors where GST is not applicable, the maximum limit of this incentive will be Rs. 10.00 crore.

All eligible units located in Zone B category blocks in the States of North Eastern Region will be provided Capital Investment Incentive @50% of the investment made in plant and machinery (for manufacturing), or for construction of building and installation of other durable physical assets (for services sector) with a maximum limit of Rs. 7.50 crore. For those sectors where GST is not applicable, the maximum limit of this incentive will be Rs. 10.00 crore.

A new unit registered under the scheme will not be eligible to avail the benefit under substantial expansion. A unit can avail this incentive only once under the scheme. Please refer to the scheme guidelines to know more.

Eligible Units: - For both New and Expanding Units

Capital Interest Subvention, a key component of the UNNATI scheme, offers financial relief to eligible businesses. Interest on loan up to the principal amount of Rs. 250 crore for investment in eligible plant and machinery (for manufacturing sector) or building and all other durable physical assets (for service sector) shall be eligible for Capital Interest subvention. If the total principal amount of loan (loan being defined as a whole and not as per draw-down amount in each tranche) is more than Rs. 250 crore, then interest on the loan amount exceeding Rs. 250 crore would not be eligible for Capital Interest Subvention.

The Capital Interest Subvention would be eligible on the amount disbursed and not on the principal amount sanctioned for the term loan.

A unit will be eligible for this incentive only if it installs new plant and machinery (for manufacturing sector) or constructs new building and installs other new durable physical assets (for service sector) where purchases have been made based on Arm‘s Length Pricing.

All eligible units located in Zone A category blocks in the States of North Eastern Region can avail Capital Interest Subvention at the annual rate of interest of 3% for a maximum of 7 consecutive years from any date after the date of application for registration under this scheme. However, disbursement of the eligible amount under this incentive shall begin only after the commencement of commercial production.

All eligible units located in Zone B category blocks in the States of North Eastern Region can avail Capital Interest Subvention at the annual rate of interest of 5% for a maximum of 7 consecutive years from any date after the date of application for registration under this scheme. However, disbursement of the eligible amount under this incentive shall begin only after the commencement of commercial production.

Please refer to the guidelines of the scheme for more details.

Eligible Units: - New Units Only

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 manufacturing sector) or construction of building and other durable physical assets (for services sector). The value of Plant and Machinery for manufacturing or building and durable physical assets in Services sector units will be as per the eligible value determined under the Capital Investment Incentive.

All eligible units of Zone A & Zone B will be granted a Manufacturing & Services linked incentive (MSLI) equal to 100% of the Net payment of GST, i.e. GST Paid less Input Tax Credit, for a maximum period of 10 years from the date of commencement of commercial production/operation or till the validity of the scheme whichever is earlier. However, GST paid on exported goods or services will not be counted towards eligible incentive amounts under this component.

The amount of incentive paid in a financial year will not exceed one-tenth of the total amount of eligible incentive under this component subject to full payment of GST as per GST return filed for the claim period.

In case the Net GST paid by any unit in a financial year is more than one-tenth of the total amount of eligible incentive, the balance can be carried forward to the subsequent financial year(s). Further, if the unit cannot claim the full eligible amount of incentives in the first 3 years, the same can be carried forward to subsequent years. However, this will not be carried forward beyond the eligible period of 10 years or beyond the scheme's validity, whichever is earlier.

In order to avail of benefits under this incentive, a unit will be required to have a new registration number for GST. If an applicant has another unit registered within the same state, the existing GST number shall not be used for the new unit registered under this scheme. Please refer to the scheme guidelines for more details.