U.P. govt issues LOCs to 20 industrial units, paves way for investment
Of these 20 units, seven fall under the super mega category (investment from ₹500 crore but less than ₹3,000 crore), six under the mega category (investment from ₹200 crore but less than ₹500 crore)
The Uttar Pradesh government has issued “Letters of Comfort” (LOCs) to 20 major industrial units in one year paving the way for substantial investments and job creation in the state.
Of these 20 units, seven fall under the super mega category (investment from ₹500 crore but less than ₹3,000 crore), six under the mega category (investment from ₹200 crore but less than ₹500 crore) and seven under the large category (investment from ₹50 crore but less than ₹200 crore).
“Letter of Comfort” is a commitment from the state government to provide a set of incentives to investors defined under a particular scheme on fulfilling the eligibility criteria and other admissibility provisions.
According to a press release, the state government has issued LoCs to industrial units seeking rebates and reimbursements under the Uttar Pradesh Industrial Investment and Employment Promotion Policy-2022, which offers several incentives such as capital subsidies and net SGST reimbursements to investors who meet the requisite conditions outlined in the state’s investment-oriented policies.
These concessions are granted after a thorough review of the companies’ detailed project report. The Purvanchal (state’s eastern region) leads in obtaining LoCs with seven investments projects worth approximately ₹4,182.17 crores coming up in the area, followed by Paschimanchal (western UP) region, which has bagged eight investments totaling approximately ₹3,380.31 crore.
Four industrial units of Madhyanchal (central UP) have secured LoCs with a total investment of about ₹1,830.48 crore, while in Bundelkhand one industrial unit worth investment of about ₹496.57 crore has been provided LoC.
Chief secretary and infrastructure and industrial development commissioner, Manoj Kumar Singh, according to the press release, highlighted the state’s commitment to fostering industrial growth and creating employment opportunities.
“These Letters of Comfort signify our resolve to provide a conducive environment for industrial investments. By facilitating such large-scale investment projects, we aim to boost economic development and generate significant employment in the state,” he said.
Mega category projects include three separate units of Varun Beverages (Prayagraj, Amethi, and Gorakhpur), Shree Cement (Etah), Banaskantha District Cooperative Milk (Varanasi), ITC (Hardoi) and AB Mauri India Pvt Ltd (Pilibhit).
Out of these, Varun Beverages, Shree Cement and ITC have will receive reimbursement of net State Goods and Services Tax (SGST), while Banaskantha and AB Mauri would receive capital subsidy. Together, these seven Super Mega units would invest approximately ₹6,381.52 crore in the state.