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Phone: +91 9811 253 529, +91 11 2338 7787
E-mail: info@fortunelegal.in
Key Highlights of Industrial Promotion Policy of Uttar Pradesh 2017- A Pardigm Shift
With the announcement of Industrial Investment and Employment Promotion Policy of Uttar Pradesh 2017, government of Uttar Pradesh clarified its approach on need to develop infrastructure of state. The key issues which the policy focuses are development of road networks throughout the state, 100% electrification and to provide all the necessary facilities to attract manufactures and investors to set up manufacturing plants in Uttar Pradesh. To achieve the set targets, government has decided to give subsidies, loans, rebate in interest and other facilities for development of Industrial Parks.
It’s a positive shift and attempt to fall in line with make in India initiative of Government of India.
The key highlights of the policy are as follows:-
1. Developing new industrial parks and upgrading existing ones: The major sectors discussed in policy are development of Food Parks, IT Parks, Textile Park, Pharma Park, Industrial parks, construction of major expressways, national highways and state highways to decrease the transportation time and to establish easy access to markets of major cities, providing establishment of logistics facilities including truck terminals and accommodation facilities for employees in all the major industrial parks and promoting country specific industrial parks to attract FDI. The Government is also focusing on promoting private industrial parks around Lucknow-Kanpur, Kanpur-Allahabad and Varanasi-Allahabad zones.
2. Promoting Private Industrial Parks/ Estates: Government to provide incentives in the form of tax rebates and other benefits to industrial parks/ estates of more than 100 acres in Bundelkhand & Poorvanchal; 150 acres in Madhyanchal and more than 50 acres in case of Agro Parks in Bundelkhand, Poorvanchal and Madhyanchal to be developed by private sector.
3. Subsidies and incentives for setting up industrial parks:
Interest subsidy on purchase of land: Reimbursement of interest of up to 50% of annual interest on the loan taken to buy land, calculated on the basis of prevalent circle rate, for 7 years subject to a maximum ceiling of Rs. 50 lacs per annum per industrial estate/agro parks.
Interest subsidy on loan taken for development of infrastructure in industrial parks: Reimbursement of interest of up to 60% of annual interest for 7 years on the loan taken for building infrastructure in the industrial parks/ estates subject to Rs. 10 crores per year with an overall ceiling of Rs. 50 crores per industrial estate/agro park.
Interest subsidy on loan taken for building Hostel/Dormitory Housing for workers: Reimbursement of interest of up to 60% of annual interest for 7 years on the loan taken for building Hostel/Dormitory Housing for workers in the industrial parks/ estates subject Rs. 5 crores per year with an overall ceiling of Rs. 30 crores per industrial estate/agro parks.
Exemption from stamp duty: 100% exemption/ reimbursement on stamp duty on the purchase of land by the developer and 50% exemption on stamp duty to individual buyers (first) will be provided on purchase of plot in the industrial parks/ estates.
4. National Investment & Manufacturing Zones : To generate employment in state, Government of Uttar Pradesh has ensured speedy implementation of two National Investment & Manufacturing Zones (NIMZ) in Jhansi and Auraiya under the provision of National Manufacturing Policy.
5. Three Integrated Manufacturing Clusters (IMC) including Auraiya – Etawah - Kanpur Cluster, Allahabad-Varanasi Cluster and Agra-Aligarh Cluster have been identified along EDFC for giving boost to the manufacturing sector in the State. Dadri – Noida - Ghaziabad investment region, strategically positioned close to WDFC & EDFC link, will be developed with an aim to provide seamless connectivity and world class facility to the Industrial units.
6. Roadways:
Construction of road corridors: Construction of roads connecting Mathura, Kashi, Jhansi and Gorakhpur thereby connecting the entire UP. Along with developing quality 4-lane and 6-lane highways criss-crossing the entire state. The policy thereby will enable the industrial products including that of weavers and other traditional artisans of the state to easily reach the market. With an aim to develop such regions with the most advanced infrastructure and outstanding facilities tailored to suit the requirements of modern industries, along major expressways such as Lucknow Agra Expressway, Lucknow-Kanpur, Kanpur-Allahabad and Varanasi-Allahabad zones on the lines of Noida & Greater Noida, the government is keen to promote industrial & investment regions and private industrial parks in these zones.
Dedicated Freight Corridors: The upcoming WDFC stretches from Dadri in Ghaziabad to Jawaharlal Nehru Port at Mumbai via Vadodara – Ahmedabad – Palanpur – Phulera – Rewari and covers an overall length of 1504 Km and Eastern dedicated Freight Corridor via Meerut Muzaffarnagar. New industrial regions, townships and urban infrastructure will be developed across the corridors.
7. Developing new airports: Government in policy proposed to built new airports and has already given in principle approval of Jewar airport, facility of dry cargo, aircraft maintenance hubs on Public Private Partnership Model.
8. Development of waterways: Government proposed to take necessary action for developing the Ganga Waterways connecting Allahabad, Varanasi and Haldia Sea Port at Kolkata.
9. Digital Infrastructure: Development of broadband highways and other infrastructure ensuring universal access to mobile connectivity.
10. Transportation and logistics: Expansion of existing metro services in Lucknow and NOIDA and commence development of new metros at Kanpur, Meerut, Agra, Varanasi, Allahabad, Gorakhpur, Jhansi and Ghaziabad.
11. Power: Availability of quality uninterrupted power is one of the crucial factors of production for industries. To meet the growing demand in the state, Government would encourage private participation in energy generation, transmission and capacity augmentation. The Chief Minister of state has set the target of achieving 100% electrification in the state.
12. Private Sector Infrastructure Investments
Stamp duty exemption: 100% in Bundelkhand & Poorvanchal, 75% in Madhyanchal & Paschimanchal (except Gautambuddhnagar & Ghaziabad districts) region of the state and 50% in Gautambuddhnagar & Ghaziabad districts.
EPF Reimbursement Facility: Reimbursement upto to the extent of 50% of employer’s contribution to all such new Industrial units providing direct employment to 100 or more unskilled workers.
To fill the targets set in Uttar Pradesh Industrial Policy 2017, government has decided to organize mega investment meet which will be organized in October-November 2017.