As per the policy, the state government would provide 50 percent subsidy of the capital subsidy offered by the central government
The state government of Uttar Pradesh has now finally signed the much-awaited semiconductor policy 2024. Uttar Pradesh is now the fourth state in India after Gujarat, Odisha, and Tamil Nadu to have its own semiconductor policy. According to the state cabinet, the policy would provide incentives to the investors, which will help the state in becoming a massive hub of semiconductor industry.
For a term of five years, Chief Minister of UP, Yogi Adityanath has signed the policy. During a media conference, higher education minister minister Yogendra Upadhyay said that UP’s semiconductor policy is the best because it will provide capital, nonon-financial, and financial incentives to all the investors in the semiconductor manufacturing ecosystem. Sources familiar with the development of the state, claimed that as per the policy, the state government would provide 50 percent subsidy of the capital subsidy offered by the central government.
Moreover, it will offer interest subsidies of up to a maximum Rs 1 crore for units investing up to Rs 200 crore. Apart from that, a discount rate of 75 percent will be provided on the first 200 acres of land and 30 percent discount on additional land, while at the same time, there will be a 100 percent exemption on registration and stamp duty upon buying of land. The official press release of the UP government clearly indicates that demand for semiconductors is very likely to surpass USD 100 billion by 2025.
The state cabinet also highlighted that the country is now much dependent on imports for semiconductors, but this policy would assist the state in spearheading the rat-race and become a trillion-dollar economy. The nodal agency for this policy will be the IT and Electronics Department. Along with that, a policy implementation unit will be formed under the chairpersonship of additional chief secretary/principal secretary of IT and electronics department.
