E-Paper
UP amends policy to attract FDI, Fortune-500 companies
Now, foreign companies will also be able to invest in the state which brings in investment through equity as well as loan or any other source, according to an official statement
LUCKNOW Foreign firms investing in Uttar Pradesh by bringing in equity as well as loans will now be eligible to avail benefits under the state government’s incentive policy. Earlier, incentives under the policy were available to only equity investments.
A decision in this regard was taken in a cabinet meeting chaired by chief minister Yogi Adityanath here on Monday. The incentive policy has been rechristened as Foreign Direct Investment, Foreign Capital Investment and Fortune Global 500 and Fortune India 500 Investment Promotion Policy.
A minimum investment of ₹100 crore is required to be made under the provisions of the policy.
“Through this amendment, the Yogi government has given big relief to foreign investors. Now foreign companies will also be able to invest in the state which brings in investment through equity as well as loan or any other source. With this decision, there is a possibility of increase in foreign investment in the state,” an official statement said.
Briefing media persons, state finance minister Suresh Khanna said the RBI’s directives provide for considering investment in equity as FDI. He said the state government, however, has realised that besides equity in industrial projects, investment is also made through external commercial borrowings, standby letters or credit and debentures etc.
Khanna said the state cabinet has decided to allow loans, debentures and other instruments to be considered as foreign capital investment with a minimum of 10% investment in equity.
UP cabinet gives nod to new molasses policy
The UP cabinet also gave approval for the molasses policy 2024-25, reserving 19% molasses for country-made liquor, just like last year.
Minister of state (excise and prohibition) Nitin Agarwal while briefing the media after the cabinet meeting at Lok Bhawan here said, “The UP cabinet gave approval for the molasses policy 2024-25. Its tenure starts from November 1 and ends on October 31. Like every year, reservation of molasses for country-made liquor is done, and this year also, we have reserved 19% molasses for country-made liquor. This is given to distilleries who manufacture country- made liquor.”
Country-made liquor contributes to around 46% of the total excise revenue of the state. Similarly, we have also made arrangements to provide molasses to small industries who need it, added Agarwal.
Incentives to electronics manufacturer
The cabinet approved financial incentives to M/S Pageant Electronics Private Limited, which is making an investment of ₹300 crore (land cost not included) under the provisions of Uttar Pradesh Electronics Manufacturing Policy 2020 (first amendment). The company proposes to manufacture electronics equipment, including mobile phones in Gautam Buddh Nagar. The project proposes to create 4,500 job opportunities.
Courses in para veterinary sciences
The state cabinet also gave approval to a proposal to work out a policy to run diploma/certificate courses in the field of para veterinary sciences through colleges in the private sector.
Uttar Pradesh Pt Deendayal Upadhyay Veterinary Sciences University and Go Anusandhan Kendra, Mathura, and other agriculture universities will provide affiliation to private colleges to run the courses.
There is a growing demand for para-vets who play an important role in providing minor veterinary services including immunisation, giving primary treatment and taking care of sick animals under the supervision of veterinary doctors. There is a shortage of veterinary doctors in the country. India has only 34,500 veterinary doctors and UP has 8,193 of them.
Retirement benefits rules
The cabinet approved a proposal to amend Uttar Pradesh Retirement Benefits Rules, 1961, to enable disbursement of gratuity to the person who gets an order from a court declaring him to be legal heir of a deceased employee. Under the existing provisions, gratuity is disbursed to the nominee of an employee (in case of his death). The gratuity is given back to the government if the employee has not nominated anyone. The amendment would enable disbursement of property to legal heirs on an order by the court.
₹75.58 cr for Lohia academy
The state cabinet gave a nod to an additional sum of ₹75.58 crore to make Dr Ram Manohar Lohia State Administration and Management Academy functional at Chak Gajaria City, Sultanpur Road, Lucknow. The finance expenditure committee has approved a revised cost of ₹474.27 crore for the project. As the construction of the sports block has been deferred, a sum of ₹10.12 crore will be deducted from the total approved cost of the project.
