UP Infrastructure And Industrial Investment Policy

Infrastructure and Industrial development is key to the development of the State. Uttar Pradesh Govt. has launched its Infrastructure and Industrial Investment Policy for establishing Uttar Pradesh as the most preferred destination for investment by attracting investors, thereby accelerating the economic growth and creating vast employment opportunities, resulting in qualitative improvement in the living standard of people.

Key Objectives:

• To achieve industrial development growth rate of 11.2 per cent per annum, aligned with the target of 10 per cent per annum growth in State Gross Domestic Product (SGDP) as envisaged in the Twelfth Five Year Plan.
• To accelerate industrial development in the State.
• Creation of congenial industrial environment and high-end infrastructure facilities to attract investment in the State.
• To further strengthen the existing industrial capacity in the State.
• To create new employment opportunities across all economic sectors.
• Eradicating regional industrial imbalance by uniformly extending the benefits of investment to all geographical areas of the state.
• Qualitative enhancement of skill and capacity of human resources of the state.

Eligible Entities:

Any existing or new industrial unit, MSME, Infrastructure body, Commercial Organization, Partnership, Urban body and etc are eligible for the fiscal incentives and subsidy under this scheme.

Benefits:

1. Exemption from Stamp Duty:

• 100% exemption from stamp duty will be provided to units related to IT, Biotechnology, Agro Processing, Food Processing, Solar Energy and BPO Call Centers in the entire state and units to be established in Eastern UP, Central UP and Bundelkhand region.
• Provision of 100% exemption from stamp duty on purchase of land will be available to units set up by private sector, except those set up through Public-Private Partnership (PPP), for development of infrastructural facilities.
• Stamp duty exemption will be available only to those units which purchase or lease land, shed and industrial tenements from State Government or Central Government or from Corporations/ Boards/ Company/ Institutions owned or controlled by them.
• Units not covered under above criteria will be provided 75% exemption from stamp duty.

2. Exemption from Mandi Fee:

• All new food processing units having an investment of Rs 5 crores or more in plant and machinery for next 5 years will be provided exemption from Mandi Fee on purchase of raw material for 5 years.

3. Concession related to Commercial Tax Department:

• In the interest Fiscal Subsidy and Exemption 35 of the industry, the rate of entry tax on iron and steel to be used as raw material will be made more prudent.
• Additional raw material, processing material and packing material being used in manufacturing and packing of goods for sale will be included in the category of 4% VAT liability.
• Manufacturers, who export through export houses, will be provided the facility of input tax refund or set-off facility related to the sale to export houses for export outside India.
• In case of transfer of stock outside the state, deduction from input tax credit will be allowed equivalent to the rate of central sales tax, which is applicable on form-C of commercial tax with regard to interstate sales.

4. Extension of Investment Promotion Scheme:

• Facility of interest free loan, from the date of first sale up to 10 years, equivalent to sum of VAT and CST deposited by unit or 10% of the annual turnover whichever is less, which will be payable after 7 years from the date of disbursement, will be provided to the all new industrial units to be setup in Eastern UP, Central UP and Bundelkhand regions with fixed capital investment of Rs. 5 Crores or more.
• Interest free loan will also be provided to all industrial units with fixed capital investment of Rs. 12.50 Crores or more to be setup in all districts except those in Eastern UP, Central UP and Bundelkhand regions.

5. Capital Interest Subsidy Scheme:

• New Industrial units set up, in Eastern UP, Central UP and Bundelkhand, will for a maximum period of 5 years be reimbursed the amount of interest at the rate of 5% payable on loan taken by them for procurement of plant & machinery from Banks/Financial Institutions up to maximum limit of Rs. 50 Lakhs but for textile units maximum limit will be Rs. 1 Crore.

6. Infrastructure Interest Subsidy:

• New Industrial units, being set up in the state, will for a maximum period of 5 years be reimbursed the amount of interest at the rate of 5% payable on loan taken by them for developing infrastructural amenities for self use like roads, sewer, water drainage, erection of power line, transformer and power feeder for the maximum limit of Rs. 1 Crore.

7. P.F Reimbursement Scheme:

• All such new Industrial units set up in the state, which provide employment to 100 or more unskilled workers, will be reimbursed the 50% amount of E.P.F. deposited by them in favour of workers for next 3 years after 3 years of setting up unit.

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