UP Cabinet approves sops to attract investments for semiconductor manufacturing
The state's semiconductor policy, introduced in January 2024, envisages case-by-case incentives for companies making large investments.
The Uttar Pradesh Cabinet on Tuesday approved incentives to attract semiconductor companies willing to invest Rs 3,000 crore or more in the state, aiming to boost high-end manufacturing and generate large-scale employment.
Briefing reporters after the Cabinet meeting chaired by Chief Minister Yogi Adityanath, Finance Minister Suresh Kumar Khanna, said 14 proposals were placed before the Council of Ministers, of which one was deferred while 13 received approval.
Khanna said the state's semiconductor policy, introduced in January 2024, envisages case-by-case incentives for companies making large investments.
These include interest subsidy, employee cost reimbursement, GST exemptions for 10 years, and power tariff subsidy of up to Rs 2 per unit for a decade.
He added that 100 % reimbursement of EPF (employees' provident fund) contributions for Uttar Pradesh-based professionals, capped at Rs 2,000 per month, along with concessions in water charges, would also be provided.
"The objective is to attract major global players in the semiconductor sector and position Uttar Pradesh as a preferred investment destination," Khanna said, noting that the industry is currently dominated by the US, Europe, Japan and Taiwan.
Industrial Development Minister Nand Gopal Gupta said that the state has been witnessing growing interest from multinational companies and that SOPs for global capability centres (GCCs) were also approved.
He said 21 companies have already started investments in the current financial year, which would generate significant direct and indirect employment.
Stamp and Revenue Minister Ravindra Jaiswal said the Cabinet expanded the implementation of a 2022 decision that capped the stamp duty at Rs 5,000 on property transfers within family.
The rule, earlier limited to residential and agricultural properties, will now apply to commercial properties as well, in both rural and urban areas, when property is gifted within the family.
Minister Khanna further said that the Cabinet also approved the establishment of a multi-super speciality hospital with 500 beds in Varanasi at the place of Shiv Prakash Gupta divisional district hospital.
He said the 500-bed hospital is estimated to cost about Rs 315 crore, and will be completed in four years. The central government will bear 60 % of the project's cost, while the remaining expense will be borne by the state, Khanna said.
The project involves demolition of 11 dilapidated buildings at the existing campus, he added.
According to an official statement, the Cabinet approved the construction of a modern bus station near the district headquarters on Tanakpur Road, Pilibhit.
The facility will be developed on 1.317 hectares of Revenue Department land, to be leased to the Uttar Pradesh State Road Transport Corporation for 30 years, extendable up to 90 years.
The new bus station will improve connectivity for passengers travelling to Uttarakhand and Nepal, and is targeted to be completed within two years.
The Cabinet approved amendments to the recruitment process for regional sports officers in the Sports Department. Out of 18 sanctioned posts, two-thirds (12 posts) will now be filled through promotion and one-third (6 posts) through international medal-winning athletes from the Olympics, Asian Games and Commonwealth Games, it added.
The Cabinet also approved the demolition of old and dilapidated residential buildings of the 37th PAC Battalion in Kanpur. Following demolition, 108 new Type-One Special residential units will be constructed to provide improved housing facilities for PAC personnel.
The cabinet approved the allotment of 50 acres of land free of cost for the establishment of an off-campus of the National Forensic Sciences University, Gandhinagar, in Varanasi.
The land, located in Tehsil Raja Talab, will be allotted on a 99-year lease after transfer from the Animal Husbandry Department. The new campus will strengthen education and technical capacity in forensic science, cybercrime and criminal investigation in Uttar Pradesh, according to the statement.