UP govt launches new electronics manufacturing policy

The new policy also has a special focus on Purvanchal and Bundelkhand regions. “Addressing the regional imbalance, the new policy will provide special benefits to Purvanchal and Bundelkhand regions. Policy provides very attractive incentives over and above government of India incentives,” the statement further reads.

With the hopes to make the state the new global electronics hub post the coronavirus pandemic, the Uttar Pradesh government on Tuesday launched a new electronics manufacturing policy.

In a bid to attract investors, the new policy has made the investors eligible for capital subsidy of 15% and additional capital subsidy of 10% on investment more than ₹1,000 crore.(AP)

“ With the new UP Electronics Manufacturing Policy 2020, UP will be able to position itself as the leading state ready to welcome global investors making India as an alternative investment destination in the post Covid-19 scenario. It has a goal of inviting investment of ₹40,000 crore in five years and four lakh direct employment,” read a statement released by the state government.

The new policy also has a special focus on Purvanchal and Bundelkhand regions. “Addressing the regional imbalance, the new policy will provide special benefits to Purvanchal and Bundelkhand regions. Policy provides very attractive incentives over and above government of India incentives,” the statement further reads.

In a bid to attract investors, the new policy has made the investors eligible for capital subsidy of 15% and additional capital subsidy of 10% on investment more than ₹1,000 crore. “The investors will also get interest subsidy of 5% per annum on the loan obtained from scheduled banks/ financial institutions. The new policy will also provide stamp duty exemption, land subsidy, patent cost reimbursement, electricity duty exemption, incentive for EMC development and individual units,” the statement said.

For the Bundelkhand and Purvanchal regions, the new policy has provided 50% land subsidy on prevailing sector rates to the investors. Incentives offered under the new policy will be up to 100% of the fixed capital investment (FCI) excluding PLI incentives offered by the Centre.

The statement said the Uttar Pradesh Electronics Manufacturing Policy 201 had got tremendous success and had achieved the investment and employment generation targets in its third year itself.

“Noida, Greater Noida and Yamuna Expressway regions have established as one of the emerging mobile manufacturing hubs in the world which have attracted foreign direct investments from many countries. More than 60% of all mobile phones manufactured in India are from UP. To further accelerate the Electronics eco-system in the state, the coverage of the new electronics manufacturing policy 2020 has been extended to the entire state from the current EMZs (electronic manufacturing zones) of Noida, Greater Noida and Yamuna expressway regions. The incentives proposed in the policy shall be applicable to all units setting up their bases anywhere in state,” it said.

The new policy will be valid for five years. A nodal agency under the aegis of the department of IT and electronics will be nominated for the effective implementation of the policy.