Electronics Manufacturing and Semiconductors
Sector Overview :
The Uttar Pradesh Electronics and Semiconductors Policy 2024 is a strategic initiative aimed at positioning the state as a significant hub for semiconductor manufacturing, critical for bolstering economic growth, enhancing innovation, and supporting India's ambitions towards self-reliance in a strategically pivotal sector.
Sector Overview
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The Uttar Pradesh Semiconductor Policy 2024 represents a forward-thinking approach to cultivating a semiconductor manufacturing powerhouse within the state. By offering a mix of attractive fiscal and non-fiscal incentives, alongside a commitment to infrastructure development and talent cultivation, Uttar Pradesh sets the stage for significant contributions to India's semiconductor industry landscape, particularly in the Bundelkhand region.
Objectives
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Economic Growth and Innovation : To stimulate Uttar Pradesh's economic landscape by fostering a dynamic semiconductor manufacturing ecosystem.
Employment Generation : To create substantial job opportunities, thereby facilitating widespread occupational engagement.
Infrastructure Development : To construct advanced infrastructure, enabling collaborative efforts between startups, corporations, and educational entities.
Skill Enhancement : To bridge the industry-academia gap through curriculum overhaul and skill development initiatives, thus nurturing a talented workforce proficient in semiconductor.
Enablers
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- Abundance Of Skilled labour available at competitive cost.
- Premier Institutes viz. IIIT Prayagraj, IIT Kanpur, IIT BHU & IIM Kanpur. region, 75% in Madhyanchal & Paschimanchal (except GHZ & GBN district) and 50% in GBN & GHZ district to Mega/ Large/ MSME projects as defined in the policy.
- Govt Initiatives viz. Net Zero imports, modified special incentive package and digital India Campaign.
- Hot Spot For Electronics Manufacturing Viz. Yamuna Expressway Electronics clusters, Ecotech, Greater Noida and upcoming greenfield city BIDA.
Investment and Fiscal incentivess
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Investors and technology firms are encouraged to leverage this unique opportunity to be part of Uttar Pradesh's technological renaissance. For detailed insights and to explore investment opportunities, reach out directly to the Project Management Unit under the supervision of the Nodal Agency.
- 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.
- 100% stamp duty exemption on purchase/lease of land.
- 100% Electricity duty exemption for 10 years.
- Dual power grid network shall be provided to the FAB units where cost of power on one network (lower of two) will be borne by the State.
- Exemption on 50% of Wheeling charges on intrastate purchase of power for 25 years.
- Reimbursement of 25% of cost in setting up Standalone R&D centre up to maximum of Rs. 10Cr.
- Center of Excellence (CoE) : Policy aims to establish Center of Excellences in collaboration with reputed academic institutions and/ or industry associations/ industry or any other Govt./ Private entity. Up to 50% of the total CoE project cost (subject to a maximum of 10 Cr.) will be borne by Government of UP.
- Patent Registration fees shall be reimbursed (One-time) at the rate of 75% of the expenses subject to maximum Rs 10 lakh for acquiring domestic patents and subject to maximum Rs 20 lakh for acquiring international patent in one- instalment.
- Exemption on 50% of Wheeling charges on intrastate purchase of power for 25 years.
- Housing : 10 percent of the cost of development of workers housing/dormitory and related collective facility within a radius of 10 km of the premises of the unit or Rs 10 crore, whichever is lower, will be provided in 7 equal annual instalments.
Non-Fiscal Incentives
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Non-Fiscal Incentives:
Mission Critical Infrastructure : : Semiconductor industry operations classified as essential services under the Essential Services and Maintenance Act (ESMA).
Water and Power Supply Assurance : Commitments to uninterrupted water and power supply, with provisions for renewable/green energy utilisation and power banking.
Industrial Housing Support : Measures to ensure operational consistency and investment security for semiconductor units.
