UP electronics manufacturing policy sets Rs 40k-crore goal in 5 yrs

By: |
August 20, 2020 2:45 AM

To promote the MSMEs units in the electronics manufacturing sector, the state government also proposes to encourage the development of rental facilities on plug and play model through public private partnership.

Under the policy, the state government will focus on establishing three electronic manufacturing clusters focusing on mobile manufacturing, consumer durables, telecom, IT hardware, medical equipment and defence.

Rolling out a red carpet for foreign investors willing to shift base from China and elsewhere to India, the Uttar Pradesh government on Tuesday approved the UP Electronics Manufacturing Policy 2020, which aims at bringing in fresh investments worth Rs 40,000 crore to the sector over the next five years and generate employment for 4 lakh.

The new policy replaces the current policy, issued in 2017, which was applicable only to units that were set up in Noida, Greater Noida and the Yamuna Expressway regions.

Under the policy, the state government will focus on establishing three electronic manufacturing clusters focusing on mobile manufacturing, consumer durables, telecom, IT hardware, medical equipment and defence. As per the policy, investors will be eligible for capital subsidy of 15%. For units investing more than Rs 1,000 crore, there is an additional capital subsidy of 10%. Apart from that, an interest subsidy of 5% will also be offered on loans taken from scheduled banks and financial institutions, along with exemptions in stamp duty, land subsidy, patent cost reimbursement and electricity duty exemption.

Speaking to FE, a state government official said the earlier policy was focussed on making the Noida, Greater Noida and Yamuna Expressway region, which border the national capital, as an electronic manufacturing hub. “The 2017 Electronics Manufacturing policy has been a huge success, as more than 60% of the country’s mobile phones are manufactured in UP now. But in order to address the issue of regional imbalance, the scope of the new policy has been widened to include the whole of Uttar Pradesh. And in addition, the rate of land subsidy has been doubled for investors willing to set up units in the economically backward regions of Bundelkhand and Purvanchal,” he said.

To promote the MSMEs units in the electronics manufacturing sector, the state government also proposes to encourage the development of rental facilities on plug and play model through public private partnership. 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.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Mukesh Ambani’s Jio commands 52% of India’s internet user base; market adds this many users at March-end
2Over Rs 70K crore worth of loans sanctioned to discoms under liquidity package: Govt
3Startup India: Under Modi’s pet scheme, startup jobs jump 126%; this many companies recognised