Six months after romping home to a massive win on the promise of change, the ruling Samajwadi Party on Tuesday announced Uttar Pradesh’s new Industrial and Infrastructure Investment Development Policy-2012.
The policy, which comes eight years after the last policy was formulated in 2004, promises a bag-full of goodies to investors, including 24-hour power supply, 100% waiver in stamp duty for industrial units in Poorvanchal, Madhyanchal and Bundelkhand, 100% exemption to those who build infrastructure facilities such as roads, power, wholesale, transshipment centres, warehousing, cold storage, as well as information technology, biotech and agro-processing units. Even industrial estates developed by the private sector will get reimbursement of 25% in stamp duty. Apart from this, iron and steel units will be exempted from entry tax.
The eligibility criteria for new industrial units to avail incentives has been brought down from R10 crore to R5 crore for Poorvanchal, Madhyanchal and Bundelkhand, while it has been reduced to R12.5 crore from R25 crore for the rest of state. Under this scheme, interest-free loan equivalent to VAT and Central Sales Tax paid by industrial units will be provided for a period of 10 years.
The policy will also launch a new capital interest subsidy scheme, under which new industrial units to be set up in Poorvanchal, Madhyanchal and Bundelkhand shall get reimbursement at the rate of 5% on interest rate of loan taken for plant and machinery, maximum up to R50 lakh for a period of five years. ?We have also announced an enabling provision in the policy which means bigger units will be dealt with on a case-to-case mode where extra sweeteners can be added depending on the requirements,? said state’s infrastructure and industrial development commissioner Anil Gupta.
He said that the new policy is an all encompassing roadmap that will guide the state’s industrialisation and has been formulated with an objective of attaining the target of 11.2% industrial growth.
?Once the policy is operationalised, we plan to launch road shows in various states as well as in other countries, where we will hardsell the state though this policy,? he said.
