Uttar Pradesh cabinet tweaks policies to attract investment, create jobs

Published on Nov 16, 2022 11:15 PM IST

Uttar Pradesh cabinet approves a proposal for convening a brief winter session of the state legislature from December 5, supplementary budget to be tabled

Chief minister Yogi Adityanath chairs an Uttar Pradesh cabinet meeting in Lucknow on Wednesday. (HT PHOTO)
Chief minister Yogi Adityanath chairs an Uttar Pradesh cabinet meeting in Lucknow on Wednesday. (HT PHOTO)
By, Lucknow

The state cabinet on Wednesday approved or amended four policies providing for incentives to attract large scale investment and create jobs in the lead-up to the Global Investors Summit-2023 scheduled in Lucknow for February 10 to 12.

These policies include the Uttar Pradesh Electronics Manufacturing Policy, Uttar Pradesh Solar Energy Policy, Uttar Pradesh Information Technology and IT enabled Services Policy and the Uttar Pradesh Tourism Policy

Chief minister Yogi Adityanath presided over the meeting of state cabinet that also approved a proposal to convene a brief winter session of the state legislature from December 5. The state government will present the supplementary budget for 2022-23 and carry out legislative business in the three-day session.

Briefing the media, minister for finance and parliamentary affairs Suresh Khanna said about 24 proposals were moved and the state cabinet gave its nod to all of them.

The state government hopes the amendment to the Uttar Pradesh Electronics Manufacturing Policy-2017 will attract investment of 40,000 crore, he said. It envisages setting up of three electronic manufacturing clusters, three centres of excellence, setting up of ESDS Park, attracting investment to set up semi-conductor units and create four lakh job opportunities.

Khanna said the focus of the amended policy was to provide facilities and incentives that include 15% subsidy (a maximum of 10 crore on investment of 200 crore) and additional subsidy ( a maximum of 250 crore on an investment of over 1000 crore and creation of 3000 jobs). An interest subsidy of 5% subject to a maximum of 1 crore per unit per year for five years will be given on investment of 200 crore and above. There will also be exemption in stamp duty and electricity duty. Special packages of incentives will be given for global investors making Foreign Direct Investment (FDI) in addition to the incentives given by the Union government. About the new solar energy policy, energy minister Arvind Kumar Sharma said the provisions of existing policy have been taken forward, along with addition of certain provisions. He said under the new policy, the state government proposes to generate 22,000 MW solar energy in the next five years.

He said out of this, 14,000 MW will be generated through solar parks and other open spaces. He also said 4500 MW solar energy will be generated through solar panels on roof tops while 1500 MW will be generated through rooftop panels of non-residential buildings. An additional 2000 MW generation of solar energy will be made through solar panels in the fields of farmers.

He said all cities having municipal corporations in the state will be developed as solar cities. He said the state government was already paying special attention to Ayodhya and other municipal corporations, too, would be made solar cities. He said a solar city would have to produce at least 10% of the total power consumption through solar energy. The state government proposes to provide a subsidy at the rate of 100 per person (on the basis of population of 2011 census) to these cities, the minister added.

He said the scheme to encourage solar energy will entail a burden of 7700 crore to the state exchequer. It would provide jobs to nearly 30,000 youths who would be called Surya Mitras. He said the state government’s previous solar energy policy had set a target of generating 10,700 MW solar energy. He said as of now, solar energy projects to generate 1025 MW have been commissioned while projects for 10,000 MW are in pipeline. In backward areas like Bundelkhand and the Purvanchal region, the state government will bear the expenditure on setting up to 20-km-long transmission lines. For smaller solar energy power generation units of 5 to 10 MW, the state government will lay transmission line of up to 10 km. For 10 MW to 50 MW and above 50 MW, the state government will lay transmission line up to 15 km and 20 km respectively.

He said the policy provides for 100% subsidy on setting up of solar panels for generating power for self-consumption in the fields of farmers belonging to scheduled castes, Mushahar and Vantangia communities while 90% subsidy will be given to other farmers.

These farmers will have to pay remaining 10% on the solar power panel that costs about 5.5 lakh to 6 lakh. He said in case of solar feeders, the Union government has a policy of providing 1.05 crore per MW. The state government has decided to provide additional subsidy of 50 lakh per MW for the same, he added.

The IT policy provides for setting up of IT parks in all the divisions of the state with the support of private sector.

He said IT cities would be developed in all the four regions -- east UP, central UP, west UP and the Bundelkhand region. Centres of excellence would be developed and the policy provides for incentives to those employing youths, Sharma said. Those employing women, trans-genders and disabled would get EPF reimbursement.

TOURISM POLICY

The Uttar Pradesh cabinet on Wednesday approved new tourism policy for less developed areas to attract investment in the tourism sector.

Chief minister Yogi Adityanath presided over the meeting of state cabinet that approved a proposal to bring 22 more activities under the purview of tourism. It provides for development of wildlife and an eco-tourism policy.

Briefing the media, energy minister Arvind Kumar Sharma said the new policy focuses on development of less developed areas to attract tourists in the state. He said the new activities that the policy brings under purview of tourism include heritage home stay, heritage hotels, budget hotels, star hotels and pilgrim dormitories, resorts, exhibition centres, adventure tourism and wellness centres.

Sharma said the new tourist destinations, not covered so far, would be developed. He said the policy provides for development of Ramayan circuit, Krishna circuit, Buddhist circuit, Mahabharat circuit, Jain circuit, craft circuit, freedom fighter circuit and Shakti Peeth circuit etc. The new policy provides for promotion of spiritual tourism, 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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