Industrial Investment and Employment Promotion Policy-2017 – Uttar Pradesh
The Industrial Investment & Employment Promotion Policy of Uttar Pradesh 2017 will strive to leverage the inherent strengths of the state while developing new ones and tackling its underlying weaknesses considering the economic dynamics at play at the Indian, Asian and the Global level. The policy will aim to create a framework to stabilize and make existing industries more competitive as well as attract and realize new international and national investments in the industrial sector. The key features of this policy include:
CATEGORYWISE QUANTUM, LIMITS AND PERIOD OF REIMBURSEMENT OF INCENTIVES
| Category of Industry | Annual Per- centage of Net GST Reim- burse- ment | Period (Years) | Annual Ceiling as per- centage of Admis- sible Capital Invest- ment | Admissible Capital Investment | |||
| Bundel- khand & Poorvanchal | Madh- yanchal | Paschi- manchal | Gautam- buddh- nagar & Ghaziabad | ||||
| SGST(Eligibility for reimbursement of deposited GST will be on quarterly basis). | |||||||
| Small | 90% | 5 | 20% | 100% | 90% | 90% | 80% |
| Medium | 60% | 5 | 20% | 100% | 90% | 90% | 80% |
| Large | 60% | 5 | 20% | 100% | 90% | 90% | 80% |
| Stamp Duty | |||||||
| Bundel- khand & Poor- vanchal | Madhy- anchal | Paschi- manchal | Gautam- buddh- Nagar & Ghaziabad | ||||
| All | 100% | 75% | 75% | 50% | |||
| Additional Stamp Duty exemption @20% upto maximum of 100% in case of industrial undertakings having at least 75% equity owned by Divyang/SC/CT/Female Promoters. | |||||||
| EPF (subject to conditions that direct employment generation is > 100) | |||||||
| All | 5 | 50% of employer’s contribution, after three years from the date of commercial production. | |||||
| Addl. EPF Reimbursement @10% upto maximum of 70% in case of industrial undertakings having at least 75% equity owned by Divyang/SC/CT/Females Promoters. |
Capital Interest Subsidy@ 5% p.a. or actual interest paid whichever is less annually for 5 years in the form of reimbursement of interest paid on outstanding loan taken for procurement of plant & machinery, subject to an annual ceiling of Rs. 50 lacs.
Infrastructure Interest Subsidy@ 5% p.a. or actual interest paid whichever is less annually for 5 years in the form of reimbursement of interest paid on outstanding loan taken for development of infrastructural amenities (as defined in para 2.18) subject to an overall ceiling of Rs. 1 Crore. However, additional Infrastructure Interest Subsidy@2.5% upto maximum of 7.5% shall be applicable in case of industrial undertakings having 75% equity owned by Divyang/SC/CT/Females Promoters.
Interest subsidy on loans for industrial research @ 5% or actual interest paid whichever is less annually for 5 years in the form of reimbursement of interest paid on outstanding loan taken for industrial research, quality improvement and development of products by incurring expenditure on procurement of plant, machinery & equipment for setting up testing labs, quality certification labs and tool rooms, subject to an overall ceiling of Rs. 1 Crore.
Exemption from Electricity Duty to all new industrial undertakings set up in the State for 10 years.
Exemption from Mandi Fee for all new food-processing undertakings on purchase of raw material for 5 years.
The industries which are disallowed for input tax credit under the GST regime, will be eligible for reimbursement of that amount of GST paid on purchase of plant and machinery, building material and other capital goods during construction and commissioning period and raw materials and other inputs in respect of which input tax credit has not been allowed. While calculating the overall eligible capital investment such amount will be added to the fixed capital investment.
Industrial undertakings generating minimum employment of 200 direct workers including skilled and unskilled will be provided 10% additional EPF reimbursement facility on employer’s contribution.
Industrial units providing employment to differently abled workers will be provided payroll assistance of Rs. 500 per month for each such worker.
In summary following benefits available:
- Stamp Duty: 100% in Bundelkhand & Poorvanchal, 75% in Madhyanchal &Paschimanchal (except GBNagar & Ghaziabad districts) and 50% in Gautam Buddh Nagar & Ghaziabad districts.
- EPF Reimbursement : Facility to the extent of 50% of employer’s contribution to the units providing direct employment to 100 or more unskilled workers
- SGST Reimbursement : Net SGST reimbursement @90% for Small Industries for 5 years, @60% for Medium Industries for 5 years, @60% for Large Industries other than Mega Industries for 5 years, and @70% for Mega category Industries for 10 years.
- Capital Interest Subsidy : 5% per annum for 5 years
- Infrastructure Interest Subsidy : 5% per annum for 5 years
- Industrial Quality Development : 5% per annum for 5 years
- Electricity Duty : 100% exemption to all new industrial units set up in the state for 10 years. Also, 100% exemption to all new industrial units producing electricity from captive power plants for self-use for 10 years
- Mandi Fee : 100% exemption to all new food processing units on purchase of raw material for 5 years.
- Incentivising employment generation : Units generating minimum employment of 200 direct workers including skilled and unskilled will be provided 10% additional EPF reimbursement facility on employer’s contribution.