The following incentives target the establishment of Electronics Manufacturing cluster and individual ESDM units setting up in the EMCs within the state for period ending on 31st march, 2019. The below incentives are applicable to first 3 EMCs which may further be extended to other EMCs to be decided by the empowered committee constituted under the policy.
Fiscal / Non-fiscal incentives
Fiscal Incentives applicable to EMC
A Capital Subsidy of 15% on fixed capital other than land subject to maximum of INR 50 million shall be provided
Subsidy shall be given only to the companies operating in EMCs and admissible on the capital evaluated by the Banks/ financial institutions
This Subsidy shall be provided to first 10 companies on the basis of their date of commencement of commercial operation i.e. when the first business transaction takes place
An 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 shall be reimbursed subject to a maximum of Rs. 1 crore per annum per unit.
100% exemption of stamp duty on purchase/lease of land for the establishment of Electronics manufacturing clusters.
Incentives for Filling Patent
Reimbursement of up to 50% of actual filing costs subject to a maximum of INR 100,000 for domestic and INR 500,000 for international patents applicable for MSME units.
100% tax reimbursement on VAT/CST subject to a maximum of 100% of fixed capital investment other than land (such as building, plant, machinery, testing equipment etc.) for a period of 10 years. This reimbursement shall be done through vouchers issued to beneficiary who shall then submit the same for redemption claim.
Other Incentives applicable to EMC
Provision of Land
Rebate of 25% on the prevailing sector rates shall be provided either to EMC SPV or the companies within the EMC on purchase of land from state Agencies.
EMC Infrastructure Development
State Government shall provide a subsidy equivalent to 50% of the grant provided by the Central Government under National Policy on Electronics, 2012 in terms of the cost incurred in developing infrastructure facilities (Roads, Power, Water, Testing facilities, Social Infrastructure etc.) for EMC development. This subsidy shall be applicable for first three EMCs in the state. Note: The above incentives shall also be applicable to the e-waste recycle companies which are going to be established in the EMCs.The following incentives are applicable to the companies currently operating in Uttar Pradesh & desire to expand their base outside EMC in UP.
Industrial Promotion Subsidy
Industrial Promotion subsidy equivalent to 50% of the incentives applicable for new units (setting up in EMC) would be provided to existing units, if additional capital investment for capacity enhancement to the extent of 25% or more on the existing capacities of ESDM units is made in a period of 3 years
This subsidy will be applicable for first 10 units to be considered on the basis of their date of commencement of commercial operation
Alignment with UP Skill development Mission with required skill sets for Electronics Industry in order to pass on the benefits of the scheme to the eligible.
Alignment with skill development in ESDM sector with the budget allocated by DeitY for this scheme Development of 2 Acres area as Incubator Centre (warm shell) in each EMC to promote startup/ Entrepreneurs /R&D to be operated on PPP mode
Establishment of Mini Tool Room (MTR) within the area of 2-3 Acres in each EMC under PPP model which may be extended for Allied products
Permission will be provided to have 24X7 operations and employment of women in all three shifts.
Note: The financial incentives to be allowed to any of the unit from all the resources shall not be more than 100% of the fixed capital investment of the unit
USP Of UP Electronics Manufacturing Policy 2017 UP – Uninterrupted Power
'Protective Load' for reliable power to EMCs – A memorandum of understanding (MoU) shall be signed with UPPCL and EMC SPV for Uninterrupted Power supply which will ensure commitment of reliable & quality power. To implement the aforementioned, Department of IT&E shall be liable to pay the additional fixed charges incurring in providing the 'Protective load' status. Managing Director of DVVNL/MVVNL/ PVVNL / PuVVNL shall be the Nodal officer for EMC power supply.
Case to Case Basis
Investment proposal of more than INR 200 crore shall be considered for special incentives over and above the mentioned incentives.
The special incentives shall include in terms of rebate on Land and Power to be decided by the empowered committee the above incentive package of case to case basis also includes the FAB units establishing in Uttar Pradesh.