The state cabinet on Tuesday approved the new industrial and infrastructure investment policy — 2012 that promises major incentives to remove regional imbalances in Uttar Pradesh (UP) and attract investments.
Chief minister Akhilesh Yadav presided over the cabinet meeting that cleared the new policy, which contains stamp duty exemptions, subsidies and a promise to improve the industrial environment in the state.
Later, briefing media persons, industrial and infrastructure development commissioner Anil Kumar Gupta said the policy provided for escort services along with single window clearances and 24-hour power to investors. He said the new policy would attract investments.
Gupta said the state government proposed to achieve 11.2% industrial growth under the new policy that also provides for dealing with big investment proposals on a case-to-case basis.
A special Employees Provident Fund (EPF) reimbursement scheme has been launched to generate new employment opportunities in the state.
As per the scheme 50% of the EPF contribution by industrial units would be reimbursed for three years if it employed 100 or more workers.
The policy provides grant of 100% exemption in stamp duty to the new industrial units in the Poorvanchal (east UP), Madhyanchal (central UP) and Bundelkhand region.
The government would also grant 100% exemption in stamp duty for information technology, biotechnology, agro processing units and infrastructure projects — roads, power, wholesale, trans-shipment centres, warehousing and cold storage etc. Industrial estates being developed by the private sector would also get reimbursement of 25% in stamp duty.
A capital interest subsidy scheme has also been launched to reimburse 5% of interest (maximum of Rs. 50 lakh for five years) on loan taken for setting up plants and purchasing machinery. An industrial quality development subsidy scheme has also been launched to provide reimbursement at the rate of 5% on the interest of loan taken for establishing testing labs, quality certification labs and tool rooms etc. subject to a maximum of Rs. 1 crore for a five-year period.
Other Policy Highlights
Iron and steel would be exempted from entry tax.
Eligibility criteria for incentives under the investment promotion scheme reduced from Rs. 10 crore to Rs. 5 crore for Poorvanchal, Madhyanchal and Bundelkhand regions and from Rs. 25 crore to Rs. 12.5 crore for rest of the state.
An interest free loan equivalent to VAT and central sales tax (paid by industrial units) will be provided for 10 years under this scheme. Most of the raw and packaging materials will be enlisted and expanded for a tax liability of 4% only.
New policy provides for measures to deal with traditional industrial clusters in different regions — like lock industry in Aligarh, leather in Kanpur and brassware in Moradabad.