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UP govt unveils new electronics manufacturing policy to woo investors

The Uttar Pradesh government on Tuesday unveiled a new electronics manufacturing policy to become a global electronics hub

Uttar Pradesh government

Press Trust of India  |  Lucknow 

Yogi Adityanath, Yogi, Yogi govt, Uttar Pradesh, UP govt

The on Tuesday unveiled a new electronics manufacturing policy to become a global electronics hub and attract international investors looking to shift their base to India in the post COVID-19 scenario.

The policy aims at inviting investments of Rs 40,000 crore in five years and creating four lakh direct jobs, an official spokesman said.

Uttar Pradesh Electronics Manufacturing Policy 2017 got tremendous success and it achieved the given target of investment and employment generation in the third year itself.

Noida, Greater Noida and Yamuna Expressway regions have been established as one of the emerging mobile manufacturing hubs in the world which has attracted foreign direct investments from many countries.

The state accounts for more than 60 per cent of all mobile phones manufactured in India.

To further accelerate the electronics ecosystem, the coverage of the new electronics manufacturing policy 2020 has been extended to the entire state from the current electronics manfacturing zones (EMZ) of Noida, Greater Noida and Yamuna Expressway regions.

The incentives proposed in the policy shall be applicable to all units setting up their bases anywhere in Uttar Pradesh, the spokesman said.

To address the regional imbalance, double the rate of land subsidy has been provided to investors for setting up manufacturing units in Bundelkhand and Purvanchal regions.

To promote MSME units in electronics manufacturing, the state government will encourage development of rental facilities on 'Plug and Play' model through public-private partnership (PPP) mode.

The state government envisages to create world-class infrastructure in the form of Centers of Excellence (CoEs) to promote research, innovation and entrepreneurship in the ESDM (Electronic System Design and Manufacturing) industry.

The state's focus will be to establish three Electronics Manufacturing Clusters focusing on mobile manufacturing, consumer durables, telecom, IT hardware, medical equipment, defense, among others.

Under the new policy, investors will be eligible for capital subsidy of 15 per cent and additional capital subsidy of 10 per cent on investment of more than Rs 1,000 crore.

They will also be eligible for interest subsidy of 5 per cent per annum on the loan obtained from scheduled banks/ financial institutions, the spokesman added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Tue, August 18 2020. 23:30 IST