Government Initiatives

U.P. State Government Policies

UP Government has initiated several projects as well as schemes to give boost to Information technology as well as the ESDM sector. These policies are giving way to greater investment and employment opportunities to the state.

Information Technology Policies

The objective of Information Technology policy (2004) includes using IT as a vehicle for economic development and to create a high-tech society, with a high quality of life in Uttar Pradesh. Its focus areas include making software, electronics, IT hardware. IT/ITeS sectors globally compete and, thereby, increase the export earnings.

Electronics Manufacturing Policies

The state’s ESDM policy is poised at establishing a conducive business environment for the electronics manufacturing industry and its allied business partners within the state. This will in turn provide a special thrust for MSME businesses in the range from Rs 1- 200 crore, and establish electronic manufacturing clusters in the state.

Incentives

Capital Subsidy

Capital Subsidy : A capital subsidy from the Central Govt. of 25% in units at MOX

CVD/Excise : It provides for reimbursement of non-creditable CVD/excise from the Central Govt. for capital equipment for the MOX units.

Production Subsidy : Production subsidy at the rate of 10% of the production turnover (ex-factory) from the Central Govt. has been introduced subject to qualifications.

Capital subsidy : A capital subsidy of 15%, from the State Govt., on fixed capital other than land, subject to max, INR 5 cr.(Upper limit may relaxed subject to max INR 150 CR or on case to case basis for investment more than INR 200 cr.

Interest Subsidy : An interest subsidy of 5%, from the State Govt., per annum for 7 years subject to maximum Rs. 1 Cr per annum per unit.

Other Incentives

Single Window : Single window clearance and approvals

Incentives for filing patents : Reimbursements of up to 100% of actual filing costs on awarded patents subject to a maximum of INR 5,00,000 for Domestic and INR 10,00,000 for International patents

State GST Benefit : 100% SGST reimbursement subject to a maximum of 100% of fixed capital investment other than land (such as building, plant, machinery, testing equipment etc.) for 10 years.

Operations : Permission to operate 24X7 and Women employment will be allowed in all three shifts

Uninterrupted power : Protective Load to ESDM parks / EMCs & Fab Units: An MoU shall be signed with UP Power Corporation Limited and EMC SPV / ESDM Parks / Fab Units for Uninterrupted Power supply which will ensure commitment of reliable & quality power.

TECH Facilities

Reimbursement for Training : Reimbursement of up to 5% of fixed capital investment (other than land) for ESDM units on training cost incurred for Highly skilled technology, subject to max of INR 25 CR per unit

Training Expense of Employees : 50% of Training cost incurred on training subject to max of INR 2.5Lacs per employee for international training and INR 1 Lakh per employee for domestic training on completion of six months of employment for their UP Domicile workers on International Training / 1 Lac on Domestic Training

These incentives shall be applicable for ESDM Units with investment of more than 300 crores.

WTC Noida to facilitate in securing approvals, clearances and coordination with the government

WTC Noida will offer facilities management.

WTC Noida to offer other operational support on cost basis.

WTC Noida will offer consultancy and other services for cost reduction and efficiency.

Central Policies

Central Government initiatives like make In India and Digital India will give great boost to clusterlike MOX. Certain policy recommendations if implemented will bring a high success rate for these Initiatives as well.

Some key Recommendations are as under:

Land Allotment without Infrastructure costs up to 10 Anchor Units.
Reimbursement of Cost for quality certification.
Patent should get 100% reimbursement which is limited to Rs 5 Lakhs.
Power Subsidy should get 25% of subsidy for 3 years or INR 30 Lakhs.
Stamp duty should get 100% reimbursement.
Capital Subsidy should get 20% subsidy limited to INR 10 crore per company.
Captive Equipment Subsidy The companies which have their own power generation.
Electronic Duty Exemption The state government can implement 100 % exemption.
Special support to Women Entrepreneurs Investment and lease subsidies.
Special tailor made policies for investment in R&D, Skill Development.

Digital India