HANDLOOM AND TEXTILE

• 3rd: Largest Textile Producer in India
• 5th: Largest Producer of Silk in India
• 5th: Largest Base of Handloom in India
• Largest: Exporter of Handmade Carpet in India

Sector Overview:

• Land Subsidy @50% of land cost on land purchase from State Agencies
• SGST refund for 10 years @90% to MSME units, @80% to Mega units
• Stamp Duty exemption @100%
• Electricity Duty exemption @100% to new units for 10 years
• Capital Investment Subsidy @25% for plant and machinery based on investment
• Interest Subsidy @7% upto Rs 1.5 cr (upto Rs 75 lacs for GB Nagar) for 7 years for procurement under TUFS
• Infrastructure Interest Subsidy@5% upto Rs 1 cr for 5 years per unit for developing infrastructural amenities
• Quality Development Subsidy@ 5% upto Rs 1 cr for 5 years per lab for research and quality improvement

Key Enabler

• 85 Spinning Mills
• 74 Textile Mills – in Non SSI Sector
• 47 Approved Textile Parks/Clusters

UTTAR PRADESH CIVIL AVIATION PROMOTION POLICY 2017

Uttar Pradesh aims to strengthen its position as a significant aviation hub in India, bolstered by its strategic sectoral policies designed to foster growth, connectivity, and infrastructure development within the civil aviation domain. These initiatives are geared towards attracting aviation investors, with a focus on creating a more favourable business environment, enhancing air connectivity, and promoting trade and employment through infrastructural advancements in the state's civil aviation landscape.

Sector Overview:

• Existing Infrastructure: Uttar Pradesh boasts 7 airports/airstrips, including 5 domestic and 2 international airports.
• UDAN Scheme: Targeting 25 airports under the Regional Connectivity Scheme (RCS) to enhance air transport accessibility and affordability. Currently, 6 projects are under progress under RCS phases 1 & 2, with an additional 5 projects identified for RCS Phase 3.

Policy Highlights

• VAT on ATF: Zero for 10 years for RCS airports and for 1 year for connecting non-RCS airports inside and outside U.P.
• Incentives: Viability Gap Funding at 20% State Share according to RCS.
• Operational Benefits: Includes exemptions from airport parking/night halt charges and reduced Route Navigation & Facilitation Charges for specific airports and flights.
• Electricity at subsidized rates and reimbursement of S-GST on the sale of air tickets.

SECTOR INFORMATION TECHNOLOGY

• 167 million Subscribers (Wireless + Wireline) constituting 14% India’s total subscribers
• More Than 40 IT&ITeS Parks
• More Than 25 SEZ IT&ITeS
• 13 Proposed Smart Cities 9 Government supported Incubators

Growth Drivers -

• Abundance: of skilled labour available at competitive cost
• E-Governance reforms swiftly implemented by the state, more than 62 citizen centric services made online to ensure effective delivery of public services
• Govt Schemes Viz.: National Rural Internet, SEZ Policy, Digital India Mission

Booklest Text :

• Smart IT City to be developed in Bundelkhand
• Capital subsidy of 10% of FCI maximum up to INR 50 Crore
• 10% on Operating expenses covering lease rental, bandwidth expenses, data centre/ cloud services cost and power charges max. up to INR 20 Crore.
• 25% Reimbursement on the cost of land max. Up to INR 50 crore.
• 100% stamp duty exemption
• 7% interest subsidy for 5 years max. up to INR 1 Crore per annum
• 100% reimbursement on the total EPF max up to INR 1 Cors / annum
• Recruitment assistance of INR 20,000 / employee
• Incentives of certification up to INR 25 lakh/ Unit
• Patent filing cost reimbursement
• 50% course fee reimbursement up to INR 50,000 / candidates

Fortune 500

Land Subsidisation :

• Front-End Land Subsidy: Allocations at reduced rates will be operationalized through two primary avenues:
• Directives for development authorities to allocate 50% of the available gram sabha land at acquisition cost for eligible projects.
• Frontend land subsidies of up to 80% depending on the region, with stipulated conditions on commencement of operations.

Capital Investment Support :

• Capital Subsidy: A capital subsidy, under a yearly ceiling of ₹100 crore, will be provided in seven equal annual instalments, with the percentage varying based on the geographical location within the state.

Tax Incentives :

• Net SGST Reimbursement and Refund on Capital Goods: Eligible projects will benefit from a net SGST reimbursement at 100%, and under certain conditions, a refund on the SGST paid on capital goods.

Additional Fiscal Incentives :

• Stamp Duty and Electricity Duty: Exemptions and reimbursements on stamp duty and registration fees, along with a 100% exemption in electricity duty for five years.
• Skill Development Subsidy: Reimbursement for training costs up to a specified limit.
• Green Industry Incentives: Promotion of environmentally sustainable practices through substantial subsidies for the establishment of Effluent Treatment Plants (ETP).

Support for R&D and Innovation :

• Standalone R&D Centres and Centres of Excellence (CoE): Financial grants and reimbursements to encourage the setting up of dedicated R&D facilities and CoEs, aiming to propel the state towards becoming a nexus of innovation and technological advancement.

Renewable Energy Policy in September 2022

Incentives as per Booklet :

• The State government will provide government land on lease for a period of thirty years for setting up of solar power projects.

Land Rebate:

• Land will be made available to Public sector Solar Power Park developers on lease or right-to-use basis at lease rate of Rs. 1 per acre per year. This land will be non-transferrable.
• Government land will be made available to Private sector Solar Power Park developers on lease at rate of Rs. 15000 per acre per year for a period of thirty years.
• State Government will facilitate leasing of Private land through the District collector. State Government will provide exemption from declaration in respect to non-Agriculture conversion of land and from obtaining permission on purchase of land more than the prescribed limit.

Stamp Duty :

• 100 % exemption from Stamp duty on the Land used for setting up Solar Power Projects/Solar Park in the entire State of Uttar Pradesh.

Capital Subsidy:

• Capital State Subsidy of Rs 2.50 Crore per megawatt will be provided to Utility scale solar power projects set up with 4 hours battery storage system of 0.5 megawatt capacity or above and standalone battery storage system (energised by solar energy only ) for sale of power to Distribution licensee/ UPPCL.

Infrastructure subsidy:
For grid connectivity of Standalone Solar Power projects of capacity 5 MW and above proposed to be set up in Bundelkhand region, State Government will bear the cost for construction of maximum transmission line length as follows:

• For 05 to 10 Megawatt capacity -10 Kilometer
• For >10 megawatt to 50 megawatt capacity -15 Kilometer
• For >50 megawatt capacity - 20 Kilometer.

Green Energy corridor is being set up in Bundelkhand Region of the State to facilitate evacuation of power of 4000 MW capacity
Bundelkhand Saur Urja Pvt Ltd (BSUL) have been formed for development of Solar Parks
Nodal Agency to create a land bank in State specifically in Bundelkhand region with the objective to remove the procedural delays in availability of land.

Bio Energy Incentives :

• 100% exemption in electricity duty will be provided to the bio-energy enterprises established for 10 years from the date of commencement of commercial production.
• In case of acquisition of land through lease or purchase from private tenants for setting up of bio-energy enterprises/plants or feedstock collection and storage, 100% exemption of stamp duty payable on rent deed/lease/sale deed/registration will be provided.
• Bio-energy enterprises will be given 100% exemption from the development charges charged by the development authorities of the state.

Pharma Policy

Capital Subsidy :-

• @15% of investment up to Rs 200 Cr to be provided in 5 annual instalments in Bundelkhand

Interest Subsidies :-

• @5% p.a. for 5yrs on loan taken for procurement of P&M, up to max Rs 1 Cr p.a. per unit; Addtl subsidy @2% p.a for 7yrs for units in Bundelkhand
• @5% p.a. for 5yrs on loan taken for building infra self-use, up to max Rs 1 Cr p.a. per unit.
• @50% p.a. for 5yrs on loan taken for Research quality improvement, up to max Rs 2 Cr. per unit.

• Electricity Duty Exemption: 100% exemption for 10 yrs

• Stamp Duty exemption @100%

Waste Management incentives:

• Interest subsidy for loan taken to set up waste management setup @ 50% annual for 5 yrs up to max Rs 10 lakh
• For setting up common boiler project: @35% (in case of solid fuel) and @ 50% (in case of clean fuel) of the fixed installation cost, up to Rs 2 Cr

• Patent Filing — Reimbursement of 100% of actual filing costs on domestic patents and 50% of actual filing costs on international patents

Quality Certification:

• Reimbursement of 75% of cost incurred for ISO certification and 50% of cost incurred for BIS certification
• Skill Development incentive as refund of stipend for training under NAPS & CMAPS for 6 months for a maximum of 10 trainees

Uttar Pradesh Township Policy 2023

Significant Reductions in Conversion Fee:

• Investors stand to benefit considerably from reductions in the land conversion fee. For townships in areas with a population of more than 5 lakh but less than 10 lakh, a rebate of 25% in the conversion fee is offered.
• In areas where the population is less than 5 lakh, the reduction in the fee could be as substantial as 50%.

Eligibility for Private Developers:

• Private developers now have an opportunity to partake in township development projects, opening up new avenues for investment and growth.

Flexibility in Land Use:

• For townships with a land area of below 50 acres, the policy designates these exclusively for residential purposes.
• Those encompassing 50 acres or more can also utilize the land for agricultural purposes, following protocols for converting it to residential use if desired.

Exemption from Conversion Fee for Non-Residential Land:

• Land intended for non-residential uses, with the exception of major development projects, will enjoy an exemption from the conversion fee. Such lands are also eligible for swapping within the development plan.

Facilitation of Foreign Direct Investment (FDI):

• The policy aligns with the Indian government’s FDI policy, allowing for foreign investment in township projects, thereby broadening the investment pool.

Uttar Pradesh New Sports Policy 2023

• Assistance to Grassroot Athletes: Annual assistance of INR 75,000 for athletes at junior level INR 50,000 for athletes at sub Junior level
• Assistance to Development Athletes: Annual Financial assistance of INR 2 Lakhs for athletes for their physical well-being and diet
• Assistance to Elite Athletes: Annual financial assistance of INR 3 lakhs to athletes for their physical well-being and diet
• All the Athletes part of the UP sports Scheme, Coaches and sports science staff will also be covered by a cashless health insurance of INR 5 Lakhs each. All these Personnel will also be covered by a personal Accident policy with sufficient coverage

Uttar Pradesh Tourism Policy 2018

• Interest Subsidy: @5% for 5 years upto Rs 25 lacs per annum to all new units.
• Stamp Duty exemption: @100% on sale/lease/transfer for the first transaction.
• Bundelkhand being developed as major tourism circuit under new tourism policy
• Conversion and Development charges waiver: @ 100% to all tourism units.
• Skill Development Subsidy: @100% reimbursement of hospitality related course fees for upto Rs 10000 per person.
• Excise License Fee exemption: @100% exemption to Heritage hotels set up in rural areas.

Data Center Policy

• Interest Subsidy: Up to 60% reimbursement of annual interest for 7 years with a cap of INR 10 Crore per year, accumulating to a total ceiling of INR 50 Crore per park.
• Land Subsidy: 25% subsidy on land from State Agencies in Madhyanchal and Paschimanchal regions.
• Stamp Duty: Full exemption on the first transaction and 50% on the second for land purchase/lease.
• Electricity Supply: Reimbursement for one of the dual grid lines; 50% off wheeling and transmission charges with additional exemptions for interstate and intrastate sale.

Msme

Special Incentives:

• Providing special incentives for the setting up of and up-gradation of enterprises in Bundelkhand
• Gram Sabha land of 5 acres or more available at one place within the 5 km vicinity of expressways/corridors
• special incentives for the setting up of and up-gradation of enterprises in Bundelkhand

Capital Subsidy :

• MSME in the Bundelkhand region of the State will be eligible for capital subsidy of 25%, 20% and 15%, respectively
• SC/ ST and women entrepreneurs will be eligible for 2% additional, capital subsidy
• Capital subsidy is capped at Rs 4 Crore/ unit

Interest Subsidy :

• Only micro units will be eligible for interest subsidy
• 50% interest subsidy, payable annually for five years, subject to ceiling of Rs 25 Lakh/ unit
• 60% interest subsidy for SC/ ST and women entrepreneurs, payable annually for five years, subject to ceiling of Rs 25 Lakh/ unit

Infrastructure Interest Subsidy :

• Approved MSME industrial parks/ estates/ flatted factory complex (minimum area of 4000 square metres for flatted factory complexes) projects with area of 10 acres or more, will be eligible for annual infrastructure interest subsidy of up to 50%, subject to ceiling of Rs 2 Crore, annually
• Infrastructure interest subsidy will be payable for 7 years

Stamp Duty Exemption :

• MSMEs will be eligible for 100% stamp duty exemption in the Purvanchal and Bundelkhand region, and 75% in the Madhyanchal and Paschimanchal region except for Gautam Budh Nagar and Ghaziabad wherein stamp duty exemption will be 50%
• Women entrepreneurs will be eligible for 100% stamp duty exemption in any part of the State
• MSME industrial parks/ estates/ flatted factory complex

Food Processing

• Amounting to 35% of incurred expenditure on plant, Machinery and technical civil work for FPIs Subject to maximum of INR 5 Crores.
• In case of expansion and modernization / up-gradation, capital subsidy will be 25% subject to maximum of Rs 1 Crore.
• Permission to purchase land (agricultural) for more than 12.5 acres for FPIs.
• Conversion of Land Use: 50% fees will be waived off on CLU
• 100% exemption from stamp duty for the land purchased for the establishment of the food processing industry.
• Exemption from Mandi fees and cess for agricultural produce procured from other states for processing in Uttar Pradesh.
• Subsidy on Solar power projects for electricity supply to processing units: 50% subsidy on solar power utilities and rural areas and 90% subsidy for women entrepreneurs in the same category.
• Scheme for Creation of backward and forward Linkages: The admissible grant will be 35% of the eligible project cost subject to maximum of INR 5 Crores
• Sponsoring studies for certifying / declaring an area disease free i.e. Durum wheat- Bundelkhand.

Defence & Aerospace

• Capital Subsidy at the rate of 10% upto maximum INR 500 Crores to all D&A units setting up projects in Jhansi and Chitrakut node of UPDIC
• Transport Subsidy for Anchor units for transfer of technology
• Reimbursement for setting up Effluent Treatment Plant(ETP) by D&A units
• Reimbursement of patent filing fees at the rate of 100% for domestic patent registration and at the rate of 75% for international patent registration
• Reimbursement of Trademark registration fees
• Financial assistance of MSME units for obtaining quality certification

Semiconductors

• Capital Support: Fiscal assistance pegged to a percentage of project costs as delineated by relevant guidelines issued by the MeitY, Government of India.
• Interest Subsidy: A generous subsidy on interest rates for investments up to INR 200 Cr, ensuring financial viability for burgeoning units.
• Patent Reimbursement: Substantial reimbursement for domestic and international patent registration fees, encouraging innovation and intellectual property creation.
• Industrial Housing Support: Financial backing for the development of worker housing facilities, ensuring a conducive living environment for industry employees.

Electric Vehicle Manufacturing

Land Subsidy :

• 50% Land subsidy on prevailing sector rates shall be provided to SPV/PIA of EMC/ESDM Parks and individual ESDM units on purchase of land from state Agencies in Bundelkhand regions
• 100% Electricity Duty exemption will be admissible for the investors operating units in Bundelkhand for 10 years

Incentives & Subsidiaries:

• Charging Stations (one time) investing minimum INR 25 lakh shall be provided capital subsidy @20% upto maximum INR 10 lakh per unit to 1st2000 Charging Stations
• Swapping Station (one time) investing minimum INR 15 lakh shall be provided capital subsidy @20% upto maximum INR 5 lakh per unit to 1st 1000 Swap Stations

Purchase Subsidy scheme (one time) valid for 1 year from date of notification specifically done for thissubsidy scheme at following rates in defined segments –

• 2- Wheeler EV: @15% of ex-factory cost upto Rs 5000 per vehicle subject to max. Budget outlay ofRs 100 Crto maximum of 2lac EVs
• 3-Wheeler EV: @15% of ex-factory cost upto Rs 12000 per vehicle subject to rriax. Budget outlay ofRs 60 Crto maximum of 50000 EYs
• 4-Wheeler EV: &.15% of ex-factory cost upto Rs 1 lakh per vehicle subject to man. budget outlay of Rs 250 Crore to maximum of 25000 EVs
• E-Buses (Non-Govt, i.e. School buses, ambulances, etc.): @1S% of ex- factory cost upto Rs 20 lakh per vehicle subject to max. budget outlay of Rs 80 Cr. to max. of 400 E-Buses
• E-Goods Carriers: @ 10% of ex-factory cost upto Rs 1.00,000 per vehicle subject to max. budget outlay ofRs 10 Cr to max. of 1000 E-Goods Carriers

For Adoption

• @100% on any EV purchased & registered in UP over a period of 3years from policy notification
• @100% on any EV manufactured, purchased & registered in UP in the 4th & 5th year of policy period