News Brief
Uttar Pradesh Unveils New Semiconductor Policy To Ignite Industry Growth In The State: Here's All About It
UP Chief Minister Yogi Adityanath and Prime Minister Narendra Modi.
In a move to bolster the semiconductor sector, the Uttar Pradesh government has rolled out an ambitious subsidy and exemption programme under the newly-sanctioned UP Semiconductor Policy 2024.
Designed to incentivise investors, the policy promises a slew of benefits that exceed those offered by the central government's Modified Programme for Semiconductors and Display Fab Ecosystem.
Key highlights of the policy include a generous 5 per cent per annum interest subsidy on loans acquired from scheduled banks or financial institutions, applicable for a maximum repayment period of seven years.
This subsidy extends to investments of up to Rs 200 crore, with smaller units investing up to Rs 7 crore also eligible. Also, stamp duty and registration fees on land transactions are entirely waived.
Furthermore, the state has committed to a decade-long exemption from electricity duty for investors, alongside the provision of double power grid networks for semiconductor fabrication units.
UP Minister of Higher Education, Yogendra Upadhyay, in a press statement said the recently introduced semiconductor policy under the IT and Electronics Department would play a crucial role in making the state and the country a leader in this sector.
To foster international-level expertise within the semiconductor industry, units will also receive up to Rs 1 crore as one-time assistance for a period of up to 12 months.
Moreover, the policy includes provisions for establishing research and development (R&D) centres and centres of excellence (COEs), with substantial subsidies allocated for their setup.
R&D centres stand to receive up to Rs 10 crore in subsidies, while COEs will benefit from 50 per cent of the total project cost, capped at Rs 10 crore.
