Rebooting economy: Adityanath to host virtual conclave for investors

UP wooing corporations exiting China after Covid-19, US-China trade war

With the Covid-19 headwinds impacting commercial and industrial sectors alike, Uttar Pradesh chief minister Adityanath today announced the hosting of a virtual conclave for industrialists and investors with a view to rebooting the economy.

In the backdrop of the global corporations mulling to shift manufacturing bases out of China after the coronavirus outbreak and stiffening US-China trade war, the Adityanath government has been actively trying to woo investors in the state.

Last month, the state cabinet had also cleared its new investment policy to give further impetus to industries, particularly in the backward Eastern UP and Bundelkhand regions. Besides, the state senior ministers and officials have also been holding virtual parleys with business delegations, companies and government representatives of different companies, including the US, South Korea, Japan, Thailand, Germany etc.

Presiding over a meeting, the CM directed officials for time bound resolution of the grievances of industrialists, and said he would virtually interact with investors under the aegis of the state industry interface, Udyog Bandhu.

The CM underlined he would hold virtual discussions with all the three category of investors, including those who have already invested in UP, apart from those who are in the process of investing or are looking to invest.

Meanwhile, he instructed nodal officials to accelerate the entire gamut of the economic value chain in the state. For example, Adityanath suggested the huge untapped potential in the dairy sector could be realised if more dairy cooperative societies were created and energised in UP.

Following lockdown, nearly 3.8 million migrant labourers and workers have returned to UP from other states, especially to the Eastern and Central UP districts. The new policy is aimed at accelerating industrialisation in these regions, so that the bulk of the migrant workforce could be absorbed in gainful employment locally.

Earlier, UP industrial development minister Satish Mahana had observed the new policy would not only boost industrial projects, it would position UP favourably before the global investors.

The new policy promises to reimburse state GST by 200-300 per cent of the capital investment, subject to differential ceiling depending upon the geography, made by the industries in the Purvanchal (Eastern UP), Bundelkhand regions and Madhyanchal (Central UP) regions.

In Bundelkhand, 70 per cent of net state goods and services tax (SGST) reimbursement would be applicable for 15 years subject to 300 per cent of capital investment. Similarly, 70 per cent of SGST would be reimbursed to investor subject to the ceiling of 200 per cent of capital investment made in Madhyanchal during the policy period.

However, the mega and super mega industrial units applying for benefitting under the new policy would be expected to achieve commercial production within 30 months and 42 months respectively of the issuance of the notification of the policy.