UP Electronics Manufacturing Policy to Create Employment

UP Electronics Manufacturing Policy 2107 – 2022 strives to tap the potential of electronics industry in the country, cater to the demand of Electronic System Design & Manufacturing (ESDM) Sector by bringing new investments in the electronics sector to push overall development of the state, which will boost up the economy and create large scale employment in the state and the country. To accelerate the ESDM ecosystem development, the policy has declared Noida, Greater Noida & Yamuna Expressway area as “Electronic Manufacturing Zone” (EMZ). All the incentives under the policy shall be applicable to all units setting up their base in the declared Zone. This Zone already has seamless connectivity, state of the art infrastructure, Logistics hub, 24X7 water-power availability, Social Infrastructure, International Schools, hospitals, Nearest International Airport & cuts across through Delhi Mumbai Industrial Corridor  & Eastern Dedicated Freight Corridor.

Policy aims to cultivate Electronics Manufacturing Industry as an important growth driver for Uttar Pradesh through effective use of skilled force, adapting innovation and emerging technologies and building excellent infrastructure leading to all-round sustainable ecosystem thereby contributing towards the overall economy of the state & the nation.

Several incentives target the establishment of Electronic Manufacturing Clusters (EMCs) / ESDM Parks and individual ESDM units setting up in the Electronics Manufacturing Zone:

• Capital Subsidy of 15% on fixed capital other than land subject to maximum of Rs. 5 crore.
• Interest Subsidy of 5% per annum for a period of 7 years on the rate of interest paid on the loans obtained from Scheduled Banks/ Financial Institutions to be reimbursed subject to a maximum of Rs. 1 crore per annum per unit.
• Stamp Duty up to 100% exemption on purchase/lease of land for the establishment of individual ESDM units under EMZ and for establishment of EMCs / ESDM parks.
• Incentives for filing Patents up to 100% of actual filing costs subject to a maximum of Rs. 5 lakh for domestic and Rs. 10 lakh for international patents, to encourage research and development.
• State GST Reimbursement 100% of fixed capital investment other than land, such as building, plant, machinery, testing equipment etc., for a period of 10 years.
• Provision of Land 25% Land Rebate on prevailing sector rates either to EMC SPV/ ESDM Parks and individual ESDM units, establishing inside EMZ on purchase of land from state Agencies.
• Dormitories for Workers and Welfare Facilities Up to 30% of total Floor Area Ratio in minimum 50 acre of land size as ‘’Industrial land use’’ to be allowed for welfare facilities like dormitories for workers, canteen, dispensary, etc.

Special attention in the policy has been given to ease of doing business in the state which includes setting up of empowered committee, single window assistance and other steps to help investors in doing business in the state.

Uttar Pradesh is one of the largest states in India with GDP of more than US$ 200 billion & has the largest consumer base in the country with around 200 million people, has taken up a trajectory towards accelerated growth & developed society.

IT & Electronics sector has been contributing immensely to the state Industry with the presence of companies like TCS, IBM, Wipro, ST microelectronics etc. and is proud of the long term establishment of Samsung, LG Electronics, and HCL for more than 2 decades of successful operation in the state.

The state has abundant skilled manpower along with the presence of prominent institutions like IITs, IIM, IIITs, and reputed Engineering Colleges catering to the demand of the Industry.

Electronics Manufacturing Industry is one of the largest & fastest growing industries in the world with a size of USD 1.75 Trillion and is expected to reach USD 2.4 trillion by 2020. The demand in the Indian Electronics Market alone is expected to reach USD 400 billion by 2020. With the present growth rate, India can manufacture goods required worth USD 100 billion only. To address the gap of supply & demand, Government of India has set a vision to transform India into a global hub for ESDM sector to cater both domestic and global demand. Aligning with the National vision, the state of Uttar Pradesh is emerging fast in the ESDM sector with the new entrants like Oppo, Lava, Intex, Vivo etc. along with several component manufacturers setting up their units in UP.

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DMIC & EDFC:

Delhi Mumbai Industrial Corridor is conceived to be developed as a Model Industrial Corridor of international standards with emphasis on expanding the manufacturing and services base and develop DMIC as the ‘Global Manufacturing and Trading Hub’.

Eastern Dedicated Freight Corridor (EDFC) project is part of India’s Dedicated Freight Corridor (DFC) programme, which aims to create one of the world’s biggest cargo operations. The EDFC project involves the construction of a 1,839km-long freight line extending from Ludhiana in the Indian state of Punjab to Kolkata.