State specific incentives for the Investment Promotion
Uttar Pradesh provides several incentives to promote industrial development in the State through its"Infrastructure
and Industrial Investment Policy 2012" (105
KB). Main features of policy are as below:
Fiscal support to Infrastructure
- Under Infrastructure interest subsidy scheme, if industrial units take loan for developing infrastructure facilities for self-use, such as- road, sewer, water drainage, power line etc., then they will get reimbursement at the rate of 5 per cent on interest
rate of loan taken for this purpose, maximum upto Rs. 1 crore for a period of 5 years
- Developer of industrial area or industrial estate in private sector will be provided 25% reimbursement from stamp duty paid, subject to the condition that the industrial area or industrial estate has been developed and at least 50% land has been sold within
three years from the date of purchase of land.
- Exemption from land transfer fee, sub-divisional charges, and levy charges to such manufacturing units that make available their additional land for industrial purpose after 5 years to any other company or agency in which they have at least 51% equity
- If a parent company transfers land to its subsidiary, in which the parent company has minimum 51% shareholding, then reimbursement on stamp duty on land transfer will be admissible to the subsidiary company provided the commercial production has been started
by the subsidiary company within three years.
Note: 'Unit undertaking expansion' means a unit, which makes additional capital investment in land, building, plant, machinery, spare parts and capital goods, equal to minimum 25% of investment under
aforementioned heads immediately prior to expansion and where installed capacity is enhanced by at least 25% of the capacity prior to expansion.
- 100% exemption on Stamp Duty on purchase, lease or acquisition of land by industrial units proposed to be set up in Eastern U.P., Central U.P. and Bundelkhand region
- 100% exemption on stamp duty to new IT, Bio-tech, BPO, Food processing, Food park, Alternative energy resources
- 100% exemption on stamp duty to private sector infrastructure development excluding PPP projects
- 75% exemption on stamp duty to other new units on Government land & 50% exemption on stamp duty on private land
- In case of attachment of assets of a closed unit by UPFC, PICUP or bank, stamp duty shall be payable on sale price fixed by competent authority instead of circle rate
- Facility of input tax refund or set-off will be allowed to manufacturers who export outside India by sale to export houses in the course of export under sub-sec.(3) of Sec. 5 of Central Sales Tax Act 1956
- Exemption from Electricity Duty for 10 years to new industrial units and 15 years to Pioneer units and to captive power generation for self consumption by unit
Investment Promotion Scheme
- Eligibility criteria to avail incentives has been brought down from Rs. 10 crore to Rs. 5 crore for new industrial units set up in Poorvanchal, Madhyanchal, Bundelkhand and all food processing units, live stock based units & IT units, while it has been
reduced to Rs. 12.5 crore from Rs. 25 crore for the rest of State
- Interest-free loan equivalent to VAT and Central Sales Tax paid by industrial units or 10 percent of the annual turnover whichever is less will be provided for a period of 10 years repayable after 7 years from the date of first disbursement
New Capital interest subsidy scheme
- New industrial units to be set up in Poorvanchal, Madhyanchal and Bundelkhand shall get reimbursement at the rate of 5 per cent on interest rate of loan taken for plant and machinery, maximum up to Rs 50 lakhs per annum for a period of 5 years.
- New Textile units to be set up in Poorvanchal, Madhyanchal and Bundelkhand, shall get reimbursement at the rate of 5 per cent on interest rate of loan taken for plant and machinery, maximum up to Rs. 100 lakhs per annum for a period of 5 years, while this
facility is available in the tune of maximum up to Rs 50 lakhs per annum in the other region of the state.
Industrial quality development subsidy scheme
- Reimbursement will be provided to the industrial association, group of industrial units at the rate of 5 per cent on interest rate of loan taken for establishing testing labs, quality certification lab, tool-rooms, etc. maximum upto Rs. 1 crore for a period
of 5 years
EPF reimbursement scheme
- To generate new employment opportunities, this scheme includes provision of reimbursement of 50 per cent of EPF contribution for their workers for a period of 3 years by new units after 3 years from the date of establishment of the units, if the new units
give employment to 100 or more unskilled workers.
Special facilities for Mega Projects
- Mega projects with the investment more than Rs. 500 crores will be provided with special incentives on case-to-case basis and priority shall be given for development of infrastructure facility.
In addition to this policy, the state has also enacted several sector specific policies such as :