The Uttar Pradesh government is planning to not only make ease of doing business a reality but also promising to dole out a plethora of incentives for new industries setting up base in the state, especially in the under-developed regions. But there is a condition: the investment must be done within three years. According to sources, the Yogi cabinet is all set to give its nod to new ‘Industrial Investment and Employment Promotion Policy of 2017’ on Tuesday, which would be effective for three years. This is the first time any government is planning a policy for less than its full tenure.
There is no explanation as to why the policy has been mandated for three years only but sources close to the government said that the Yogi government has a lot riding on its shoulders and there is pressure to get things done fast so that the results will appear before the 2019 Lok Sabha election. In fact, in order to broad-base the effects of industrialisation, the state government is also planning to make new investments as employment generation tools, and in turn, would be incentivising that investment with a host of waivers and tax holidays.
In an effort to take the industry out of the NCR region, the government, in its policy, which would be formally cleared by the cabinet on Tuesday, promises that those investing in Poorvanchal (East UP) and Budelkhand would be given a 100% stamp duty exemption, while those investing in central and western UP, other than Gautam Budhha Nagar and Ghaziabad districts, would be given 75% stamp duty exemption. At the same time, those investing in Gautam Budhha Nagar and Ghaziabad would also be given 50% exemption in stamp duty.
Furthermore, all private sector investment willing to set up industrial parks and estates above 100 acres in eastern UP and Bundelkhand regions and above 150 acres in central UP will be given special reimbursement, tax holidays and other incentives.
The government has proposed the setting up of a dedicated ‘Single Window Clearance’ department, and a ‘Make in Uttar Pradesh’ department in line with Prime Minister Modi’s ‘Make in India’ initiative. It has also a State Industrial Promotion Board under the chairmanship of the Chief Minister, which would expedite the proposals in a time bound manner.