Uttar Pradesh cabinet approves new industrial investment, employment promotion policy

Updated on Nov 04, 2022 12:53 AM IST

Uttar Pradesh cabinet also okays amendment to Start-up Policy 2020 and Data Centre Policy 2021. It also approves incentives to Microsoft India (R and D) Private Limited and two other units being set up in Noida at a total investment of ₹3240 crore that will lead to the creation of 20,000 jobs.

Uttar Pradesh chief minister Yogi Adityanath shows keen interest at MSME exhibition in Lucknow on Thursday. (Deepak Gupta/HT Photo)
Uttar Pradesh chief minister Yogi Adityanath shows keen interest at MSME exhibition in Lucknow on Thursday. (Deepak Gupta/HT Photo)
By, Lucknow

The state cabinet on Thursday approved the new Uttar Pradesh Industrial Investment and Employment Promotion Policy-2022, along with amendments to the Uttar Pradesh Start-up Policy-2020 and the U.P. Data Centre Policy-2021, with a view to turning the state into a trillion-dollar economy by 2027.

It also approved incentives to Microsoft India (R and D) Private Limited and two other units being set up in Noida at a total investment of 3240 crore that will lead to the creation of 20,000 jobs.

The new Uttar Pradesh Industrial Investment and Employment Promotion Policy-2022 will be effective for five years and is aimed at attracting investment at U.P. Global Investors Summit-2023 to be organised in Lucknow from February 10 to 12 next year.

“The new Uttar Pradesh Industrial Investment and Employment Promotion Policy-2022, an umbrella policy for infrastructure and industrial development, has been worked out in consultation with all the stakeholders. We have addressed all issues being faced with the previous policy (lapsed on October 12, 2022) and have incorporated various suggestions,” industry minister Nand Gopal ‘Nandi’ said, briefing the media here.

Besides Microsoft India (R and D) Private Limited (investment 2186 crore), the other units for which incentives were approved on a case-by-case basis are MAQ India Private Limited (investment 483 crore) and One97 Communications- Paytm (investment 571 crore) under the provisions of Uttar Pradesh Information Technology and Start-up Policy-2017.

Chief minister Yogi Adityanath presided over the meeting of the state cabinet that approved the incentives.

As for the amendment to UP Data Centre Policy-2021, it sets a target of setting up 900 MW (megawatt) capacity with 30,000 crore investment. The previous target was 250 MW capacity with 20,000 crore investment. The state cabinet has increased the target as 636 MW capacity has been achieved with the process of setting up of the first three units.

In order to set up smaller data centres in other districts (out of the Noida/Greater Noida region), the state cabinet has approved land subsidy and other incentives for the first eight units.

These measures have been announced before Yogi Adityanath, along with teams of ministers and officers, is likely to tour different destinations in nearly 20 countries later this month to hold road shows to attract investment for the UPGIS-2023. The state government has set a target of attracting 10 lakh crore investment at the UPGIS-2023.

Special care has been taken of investment being made in the state after the shifting of industrial units from abroad (especially China). It provides for adding 40 per cent of the cost of machines (even if they are old) to the total project cost for the units being shifted from another country to Uttar Pradesh. In case of sick units, 20 per cent cost of buying a sick industry would be added to the new investment for the purpose of providing incentives.

The new policy puts investment in four major categories — large (above 50 crore but less than 200 crore), mega ( 200 crore and above but below 500 crore), super mega ( 500 crore and above but below 3000 crore) and ultra-mega ( 3000 crore and above).

“We had notified the draft policy and received comments of stakeholders. We have identified five strategic pillars to attract investment under the policy,” infrastructure and industrial development commissioner Arvind Kumar said.

He said attention has been paid to providing necessary infrastructure for industrial clusters, parks and corridors, bring about an improvement in connectivity (including digital connectivity), assuring power and water supply.

About financial incentives, he said there would be three options for 10 to 30 per cent subsidy. Additional incentive would be given for providing more jobs, buying raw material locally and export-oriented units. He said incentives given for providing a certain number of jobs could be increased further for employing 75 per cent women. The incentives for SGST (State Goods and Services Tax) reimbursement would also range from 80 per cent in Gautam Buddha Nagar and Ghaziabad area to 200 per cent in central and west UP and 300 per cent in Bundelkhand and eastern Uttar Pradesh, he said.

He said fast track land allotment policy had been worked out for investment of 500 crore and above.

The state government would acquire the land for investors already having a part of the land, he said.

While licence would be given to the investors for getting the land, the land owners willing to provide their property for the industrial projects would also be able to register at the portal to be developed for the purpose, he added.

Kumar said there would be an online portal for providing incentives as well. Special officers would be assigned to help implementation of the MoUs (memorandums of understanding) to be signed at the Global Investors Summit-2022. He said the officers would help resolve the issues of investors.

Kumar said promoting a circular economy and ensuring a clean and green environment would also be key focus areas of the policy. “Units involved in shredding of auto vehicles, and auto parts, manufacturing of biofuel, biodiesel, recycling of plastic waste, e-waste management are also entitled for claiming benefits,” he added.

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  • ABOUT THE AUTHOR

    Umesh Raghuvanshi is a journalist with over three decade experience. He covers politics, finance, environment and social issues. He has covered all assembly and parliament elections in Uttar Pradesh since 1984.

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