In an effort to make Uttar Pradesh a hub for electronic manufacturing, seeking especially to attract foreign investors to the state, the government has brought in a new UP Electronics Manufacturing Policy, 2020.
The policy aims at bringing in investments of Rs 40,000 crore in the electronic manufacturing sector over the next five years and generate employment for 4 lakh persons in the state.
The current policy, issued in 2017, is applicable to units being set up in Noida, Greater Noida and the Yamuna Expressway regions.
The new policy, while extending the benefits being given to these areas, will be applicable across the state and will seek to establish three electronics manufacturing clusters focusing on mobile manufacturing, consumer durables, telecom, IT hardware, medical equipment, defense etc in the state.
Double subsidy in Bundelkhand and Purvanchal
Due to the earlier policy, Noida, Greater Noida and Yamuna Expressway regions have been established as one of the emerging mobile manufacturing hubs in the world which has attracted foreign direct investments from many countries. More than 60% of all mobile phones manufactured in India are from UP,” said Alok Kumar, additional chief secretary (Industries, IT and Electronics).
While the policy provides attractive sops to investors, it also seeks to invite investments to eastern UP areas which have traditionally been ignored. For instance, double the rate of land subsidy has been provided to investors for setting up manufacturing units in Bundelkhand and Purvanchal regions.
“For promotion of MSMEs in the sector, the government will encourage development rental facilities on plug and play model through PPP mode. It also seeks to create world class infrastructure in the form of centers of excellence to promote research, innovation and entrepreneurship by establishing three centres of excellence to support MSMEs,” Kumar said.
Among the incentives provided by the policy are capital subsidy of 15% and an additional capital subsidy of 10% on investment of more than Rs 1,000 crore. An interest subsidy of 5% per annum will be offered on loans from scheduled banks and financial institutions, stamp duty exemption, land subsidy, patent cost reimbursement and electricity duty exemption.
For investment in Bundelkhand and Purvanchal, 50% subsidy will be given on prevailing sector rates on purchase of land.
For foreign investors, the policy will allow refurbished plant and machinery up to 40% of the fixed capital investment.
The incentives offered under the new policy will be up to 100% of the fixed capital investment and will be over and above the incentives given by the Centre.
The policy will be valid for five years from the date of notification and a nodal agency will be set up under the IT department for its implementation. -The Times of India