NITYA Tax Attorneys

New Investment Promotion Policy for Uttar Pradesh

by | Sep 8, 2020 | Insight

Vide this update, we apprise you regarding the Quick Investment Promotion Policy 2020 for Economically Backward Areas of the State – COVID-19 (‘Policy’) issued by Uttar Pradesh Government. This Policy is issued in the wake of COVID-19 pandemic with an endeavour to increase employment opportunities and industrial investments in the backward areas of the State. This Policy is applicable in the backward regions of the State viz. Eastern UP (Purvanchal), Central UP (Madhyanchal) and Bundelkhand.

Eligibility

  • Mega and Mega Plus category units who start commercial production within 30 months.
  • Super Mega category units who start commercial production within 42 months.
  • Existing units who scale their existing investment by 80%.
  • Industrial units which were restricted / not eligible under the Industrial Investment and Employment Promotion Policy of Uttar Pradesh, 2017 shall not be eligible under this Policy as well. Further, Industrial units relating to beverages shall not be eligible.
  • The minimum capital investment required for different kinds of units under this Policy is as under:

Category

Minimum capital investment

Central UP

Eastern UP and Bundelkhand

Mega

Rs. 150 crores to Rs. 300 crores

Rs. 100 crores to Rs. 250 crores

Mega Plus

Rs. 300 crores to Rs. 750 crores

Rs. 250 crores to Rs. 500 crores

Super Mega

More than Rs. 750 crores

More than Rs. 500 crores

Capital investment shall comprise of investment made in relation to land, building, plant and machinery and any other tools and utilities necessary for the final product.

  • Applicants can file application till 6 months from reference date i.e. August 14, 2020. 

Benefits

Benefits

Central UP

Eastern UP and Bundelkhand

Exemption from payment of stamp duty

75%

100%

Refund of Net SGST

(Upper annual limit of 20% of capital investment)

70% refund of net SGST for 12 years subject to cap of 200% of capital investment made

70% refund of net SGST for 15 years, subject to cap of 300% of capital investment made

Exemption from electricity duty

50% for 10 years to new units

Interest subsidy

5% interest subsidy for loan taken for plant and machinery subject to maximum limit of Rs. 50 lakhs

 

NITYA Comments: The State has announced a slew of benefits for setting up new units or expansion of existing units to overcome current slowdown created by COVID-19.

Note: The Policy is available in Hindi only and English version of Policy is not available in public domain. The update is based on our translation of the Policy.

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