Right after sharing the blueprint of IT and ITeS Policy of UP in 2022, Uttar Pradesh has been in an vigorous attempt to attract investors to glorify its Tech-Hub dream. Now in a recent meet, Minister Yogendra Upadhyay said that the state has given approval to its long-awaited semiconductor policy.
The first semiconductor policy was introduced by Gujarat. In which the state extended a lucrative 20 percent project cost, which above the existing 50 percent extended by the centre.
The latest semiconductor policy introduced by UP Govt will be valid till the next five(5) years. This also makes UP the fourth state with a solid framework on semiconductors and drawing a valuable semiconductor policy. The earlier states with a semiconductor policy are Gujarat, Odisha and Tamil Nadu which aims to create a solid semiconductor industry in their respective states.
UP’s policy is the best and provides capital, financial and non-financial incentives to investors in the semiconductor manufacturing sector, claimed Upadhyay.
As reported by the Hindustan Times, under this new semiconductor policy, the UP government would render 50% subsidy of the capital subsidy given by the union government. It provides for interest subsidy of up to a maximum INR 1 crore for units investing up to INR 200 crore.
The policy also provides for 75% rebate on the first 200 acres land and 30% rebate on additional land. Here there will 100% exemption on stamps and registration duty on purchase of land making it a viable semiconductor destination for investors.
According to a press release, the demand for semiconductors is likely to reach USD 100 billion by 2025. The demand for semiconductors was mostly met by imports and UP’s policy would provide an opportunity for the state to take a lead and become a trillion-dollar economy.
The IT and electronics department would be nodal agency for the semiconductor policy.
Speaking to mediapersons after the Cabinet meeting, Minister Yogendra Upadhyay said that under the policy, industrial groups investing in setting up semiconductor manufacturing units will receive a fund of Rs 80,000 crores from the Centre, with the Uttar Pradesh government contributing 75 per cent of the said amount.
“The policy is expected to attract significant investments in the state on a large scale. The policy aims to make Uttar Pradesh a leader in the semiconductor manufacturing sector,” Upadhyay said, adding that 13 companies have so far expressed their intention to set up semiconductor manufacturing units in the state.
The policy also includes provisions for providing financial incentives to industries and a subsidy of 75 percent on land up to 200 acres in the form of land subsidy, he added.
Collaborations with the industry will be done under the CM Internship Program to ensure the availability of skilled workforce. Furthermore, arrangements for training related to semiconductor manufacturing will be made in the technical institutes of the state, he said.
Financial Assistance for IT Parks
The UP Govt in 2022 already extended financial assistance towards the development of one greenfield IT Park in every revenue division of the state asserted in the IT and ITeS Policy of UP 2022. IT parks proposed in an administrative division under the Taj Trapezium Zone (TTZ) will be developed in districts coming under Taj Trapezium Zone (TTZ).
As per the new semiconductor policy, the UP government will provide Rs 10 lakh for patents at national level and Rs 20 lakh for patents at the international level.
The CM Internship Program will be responsible for key collaborations with the industry. the semiconductor policy of UP has a great emphasis of skilled workforce and aims to create a major up skilling program. Furthermore, arrangements for training related to semiconductor manufacturing will be made in the technical institutes of the state, the government address concluded.
