Project 11 Uttar Pradesh Niveshak Mitra V0

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Niveshak Mitra (Investor Friendly) Policy Guide By Mishika Nayyar, Strategic Investment Research Unit, Invest India Tejaswini GB, Strategic Investment Research Unit, Invest India UTTAR PRADESH

Transcript of Project 11 Uttar Pradesh Niveshak Mitra V0

Niveshak Mitra(Investor Friendly) Policy Guide

By Mishika Nayyar, Strategic Investment Research Unit, Invest IndiaTejaswini GB, Strategic Investment Research Unit, Invest India

UTTARPRADESH

A new era of investment has started in Uttar Pradesh and I'll welcome every investor to the state. Promising adequate security, respect and a conducive environment, the Uttar Pradesh government rolls out a red

carpet for businessmen and industrialists to come and invest in the state. We will give you safety, security, respect and a conducive

atmosphere for setting up your businesses.

Hon’ble Chief Minister, Uttar Pradesh

Yogi Adityanath

Uttar Pradesh Industries Minister

Satish Mahana

Even in the middle of the COVID-19 pandemic, Uttar Pradesh has received foreign investment intents worth over INR 17,000 crore (USD 2.3 Bn) from various companies

within the country as well as from outside. There are several companies that have shown interest, have got land and started their work also. Problems of law and order, power supply and government support that were there earlier in the state have been

overcome in the Yogi Adityanath-led government.”

MinisterMicro. Small and Medium Enterprises,

Investment & Export, NRI, Sericulture, Textile& Handloom, Khadi GramodyogGovernment of Uttar Pradesh

Sidharth Nath Singh

Uttar pradesh is witnessing an overall transformation by following an economic model which has catapulted Uttar Pradesh among top states in terms of GDP.

The investor friendly policy of the state government and simplified processes of doing business are among the few reasons why there is a growing confidence of investors in

Uttar Pradesh over the last four years.

While infrastructure upgradation is the top priority of the government, due emphasis is being placed on upgrading industrial areas

in the state on a war footing and ensuring that red carpet is being rolled for all investors coming to Uttar Pradesh.

Additional Chief Secretary Micro, Small & Medium Enterprises and Export Promotion Department

Government of Uttar Pradesh

Navneet Sehgal

Uttar Pradesh has emerged as the top investment destination with several initiatives such as the new Industrial Investment and Employment Promotion policy (2017) complemented by around 20 sectoral policies. These include Food Processing Policy, Electronics manufacturing policy, IT & Start-up policy, MSME policy, Logistics policy, Pharma policy, etc. to name a few. Government of Uttar Pradesh has

also taken stringent measures to cut power losses and ensure 24X7 quality power supply to our industries. Most importantly, through our policies we are ensuring industrial security. The zero tolerance policy of the State government towards crime has largely transformed law & order

situation in Uttar Pradesh and solidified Uttar Pradesh’s growth plans

Infrastructure and industrial Development CommissionerGovernment of Uttar Pradesh

Sanjiv Mittal

The Chief Minister of Uttar Pradesh has stressed on the government’s commitment on bringing Uttar Pradesh to the path of rapid development with focus on Intent, Inclusion, Investment, Infrastructure,

and Innovation. The state of Uttar Pradesh has been and continues to be the torch bearer for implementing several initiatives to promote industry and bring in investments.

I.A.SAdditional Chief Secretary

Department of Infrastructure & Industrial Development, I.T & Electronics, N.R.IGovernment of Uttar Pradesh

Arvind Kumar

Uttar Pradesh is the emerging economic powerhouse of India. The economic policies of the state government are making a difference, aiming to witness a steep growth in the number of industries,

generate employment and ensure welfare of all its citizens.

With its dedicated investor friendly policies, it is no surprise that the state emerges as the second largest economy among the states in terms of the size of the GSDP. The state’s per capita income has increased, exports have gone up and major multinationals have already made Uttar

Pradesh, their home.

Managing Director and CEO, Invest IndiaDeepak Bagla

In the past four years, commendable work has been done to attract investments in Uttar Pradesh. For infrastructure development, there is a huge scope to set up hubs for export, IT, innovation and

3D printing, manufacturing, MSME, startup, tourism, agriculture and food processing, dairy and animal husbandry, sports, logistics, wellness and Invest India continues to extend all possible

cooperation to propel the growth of Uttar Pradesh.

TABLE OFCONTENTS

The Emerging Economic Powerhouse of India: Uttar Pradesh 1Landmark Initiatives and Policies by Government of Uttar Pradesh 4 1. Nivesh Mitra - Online Single Window Portal 4 2. One District One Product (ODOP) Program 5 3. Industrial Investment & Employment Promotion Policy 2017 8 4. U.P. Food Processing Policy 2017 10 5. UP Milk Policy - 2018 12 6. UP Solar Energy Policy 2017 14 7. UP IT and Start-Up Policy 2017 16 8. UP Electronics Manufacturing Policy-2020 17 9. Bio Energy Enterprise Promotion Programme 2018 20 10. UP Data Centre Policy 2021 21 11. Post COVID-19 Accelerated Investment Promotion Policy for Economically Backward Regions 2020 22 12. UP Film Policy 2018 24 13. UP Pharmaceutical Industry Policy - 2018 26 14. U.P. Warehousing & Logistics Policy 2018 27 15. Civil Aviation Promotion Policy of UP 2017 28 16. U.P. Tourism Policy 2018 29 17. Handloom Power loom Silk Textile Garmenting Policy, 2017 30 18. U.P. Defence & Aerospace Unit & Employment Promotion Policy 2018 & 2019 (First Amendment) 31 19. UP MSME & Export Promotion Policy 2017 33

TABLE OFCONTENTS

20. The Uttar Pradesh Micro, Small and Medium Enterprises (Establishment and Simplification) Act, 2020 34 21. UP Electric Vehicle (EV) Manufacturing Policy 2019 35 22. Uttar Pradesh Oxygen Production Promotion Policy 2021 36 23. The Uttar Pradesh temporary exemption from certain labor laws ordinance, 202 37 24. Uttar Pradesh Skill Development Mission (UPSDM) 37 25. Uttar Pradesh Startup Policy, 2020 37 26. GIS Land Mapping 38 27. UP Mukhyamantri Abhyudaya Yojana 2021 39 28. Property Evaluation & Registration Application (PRERNA) 39 29. JANSUNWAI (IGRS) 39 30. Rojgaar Sangam (Integrated Employment Portal) 39 31. Aspirational Districts of UP 40 32. Private Industrial Park Promotion Scheme 40

Pandemic struck world is gradually catching up the lost progress worth decades of innovation and improvement in human lives and businesses built. This essentially formulates the core of investor friendly policies introduced by the Government of Uttar Pradesh. Realising that this is the time to tweak business models, construct pandemic-proof prototypes and leverage futuristic technology to invent and reinvent commerce around the world, the Government of Uttar Pradesh has successfully combated the onslaught of the COVID-19 pandemic, welcomed several investors to the state and reinvented the wheels of the state economy.

Uttar Pradesh, home to 17.22% of India’s population, ranks number 2 in the Ease of Doing Business (EoDB) 2019 state ranking as per Business Reform Action Plan (BRAP). The state of Uttar Pradesh has portrayed exemplary performance in not only implementing notable reforms like Nivesh Mitra – single window system, but also attracting big names like PepsiCo, Von Wellx, IKEA, and AB Mauri among others bringing in huge investments. Being a landlocked state, Uttar Pradesh boasts extensive connectivity through its 6-8 lane expressways, linking National Capital to provide a huge market for products and services. Apart from the upcoming Asia’s largest international airport at Jewar, investors find the Government’s hand holding process and time-bound clearances without procedural delays as a significant cause for choosing Uttar Pradesh as the right destination to do business.

Making a significant jump of 12 positions in last three years to reach number 2 in the EoDB state rankings, Uttar Pradesh, the heartland of India, has managed to defy all odds amidst the pandemic. People, process, technology, and resources have been the hallmark of e-Governance practice by the Government of Uttar Pradesh which has not only increased the revenue by checking the loopholes and making the system transparent but also reduced the cost of administration for the state government.

This report will showcase the various investor friendly (Niveshak Mitra) of Uttar Pradesh which turned a crisis like the COVID-19 into an opportunity through its landmark initiatives like One District One Product, Nivesh Mitra Portal, Uttar Pradesh Skill Development Mission (UPSDM) to its recent ones like Abhyudaya Yojana and Geographic Information System (GIS) based land banks to attract foreign as well as domestic investors by highlighting its existing sector-specific policies and technological developments across the functions of government departments.

THE EMERGING ECONOMIC POWERHOUSE OF INDIA:UTTAR PRADESH

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UTTAR PRADESH: NIVESHAK MITRA (INVESTOR FRIENDLY) POLICY COMPENDIUM 02

UP RANKS AMONGST TOP FIVE STATES IN INDIA FOR PROVIDINGo Online utility permits o Environment registration enabler o Effective policies for payment of taxes o Land availability & allotment processes o Transparency & access of information

On completion of the above reforms facilitating ease of doing business, Uttar Pradesh has been granted INR 4851 crore (USD 673 Mn) in 2020 in additional borrowing limit through open market borrowings by department of expenditure.

• Access to information and transparency enabler• Single window system• Land administration and transfer of land and property• Land availability and allotment• Environment registration enablers• Construction permit enablers• Labour regulation-enablers• Obtaining utility permits• Paying taxes• Inspection enablers• Contract enforcement• Sector specific: healthcare and miscellaneous

FOR BRAP 2018-19, DPIIT HAS PROPOSED TO UNDERTAKE A 100% FEEDBACK-BASED ASSESSMENT. THE REFORM AREAS INCLUDE THE FOLLOWING:

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3 https://pib.gov.in/PressReleasePage.aspx?PRID=1698600

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One of the chief contributors to Uttar Pradesh’s stellar feat of becoming the number 2 state in Ease of Doing Business Rankings 2019, a jump of 12 positions in 3 years, is Nivesh Mitra. Nivesh Mitra (translated to investment friendly) is the online single window portal of the Government of Uttar Pradesh with Invest UP (erstwhile Udyog bandhu) as its nodal agency. It is a simple, user friendly, entrepreneur centric, transparent web application that enables existing & prospective investors and entrepreneurs to get online clearances/No Objection Certificate (NOC) through a Common Application Form (CAF) from concerned departments with ease and minimal “running around”. This one-stop solution was introduced in 18 districts of the state in its first phase on 04th June, 2009 which is now operational across all 75 districts of UP. 166 services being provided on a single website by integrating 25 departments. Some of its exemplary features include:

• Real-time dashboard which updates data relating to applications, grievances and feedback received, incentives sanctioned and land allotted thus far.• Notified on every step of the process through automatic SMS, e-mail and Sandes Mobile app available on android and IOS app store.• Auto-populated data from CAF in clearance specific application form, online payment processing of application fees and provision to download final approved digitally signed No Objection Certificate (NOC) in pdf format.• Tracking of application with colour coding to highlight those exceeding the time limit.• Online grievance redressal through Uttar Pradesh Industrial Grievance Redressal System (UPIGRS).• Services rendered are time-bound as per timelines of UP Janhit Guarantee Act, 2011.

LANDMARK INITIATIVESAND POLICIES BYGOVERNMENT OF UTTAR PRADESH

1. NIVESH MITRA -ONLINE SINGLE WINDOW PORTAL

The Nivesh Mitra portal system is very efficient and saves lot of time. It has helped in grant of application well ahead of schedule.

- GAIL India Limited, AURRAIYA

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Key Policy Highlights :o Ranked amongst top 5 SW (single window) in Indiao 166 services provided on the portal by integrating 25 departmentso Received the SKOCH Gold Award under Governance Categoryo Since February 2018, 4,03,806 clearances were granted through Nivesh Mitra that has 96% disposal rate and 85% approval rate.o 32,965 grievances have been received from entrepreneurs boasting a 95% resolution rate. o As of 2nd September, 2021 • 95.9% applications are disposed out of 4,84,011 received • 94.4% of grievances are disposed • 79.7% satisfied user feedback

In the year 2019-20 I have received a loan of Rs. 10.00 lakhs under ODOP Margin Money Scheme from State Bank of India, to expand my business of Tarakashi handicrafts work at a good level in the state and country. Presently my annual turnover run around Rs 20.00 to Rs 25.00 lakhs. I also want to teach people who want to learn this art. I am completely satisfied with my business. Thanks to UP Government & ODOP Scheme.

- Praveen Shakya, Praveen Tarkashi Seva Sansthan, Mainpuri District, Uttar Pradesh

The smallest of towns and districts in Uttar Pradesh are hugely popular for their indigenous and specialised products and crafts. There are products found nowhere else – like the ancient and nutritious kalanamak chawal, the rare and intriguing wheat-stalk craft, world-famous chikankari and zari-zardozi work on clothes, and the intricate and stunning horn and bone work that uses the remains of dead animals rather than live ones, a nature-friendly replacement for ivory. Many of these products are GI tagged, which means they are certified as specific to that region in Uttar Pradesh. Many of these were also dying community traditions that needed reviving through modernisation and publicization.Based on a district's strengths, ODOP has been a transformational step towards realising the true potential of a district, fuel economic growth and generate employment and rural entrepreneurship. Focus continues to

be placed on enabling ecosystem and providing assistance schemes for a single commodity, including manufacturing infrastructure; and stable marketing platform to improve income, local employment, skills and livelihood beyond the urban areas and create productive manufacturing from a rural/semi urban area.Inaugurated on the occasion of UP Diwas on January 24, 2018 by the Hon’ble Chief Minister of UP – Shri Yogi Adityanath, it aims to encourage more visibility and sale of indigenous and specialized products/crafts of Uttar Pradesh, generating employment at district level thereby preventing migration and increasing exports. Under this program, one product is selected for every district of UP and it is GI (Geographic Indications) - tagged. Besides ODOP Products being available on ODOP mart, it is put up for sale in Amazon, Flipkart, eBay and GeM (Government e-marketplace). The state government has recently launched the Udyam Sarathi app under ODOP Program which has provided a platform to entrepreneurs to get all information about self-employment and related activities to set up their businesses .

2. ONE DISTRICT ONE PRODUCT(ODOP) PROGRAMME

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In terms of infrastructure development, the state government of Uttar Pradesh assists in the creation of Common Facility Centre (CFC) comprising of various facilities required for the production process. Under the scheme, common gaps in the ODOP value chain of a particular district would be addressed by setting up CFC comprising of

testing lab, design development and training centre, technical research and development centre, product exhibition cum selling centre, raw material bank / common resource centre, common production / processing centre. common logistics centre, packaging, labelling and barcoding facilities

FEW OPOD PRODUCTS

Key Policy Highlights

BAKHIRABRASSWARE CRAFTSANT KABIR NAGAR DISTRICT

PERSIANSTYLE CARPETSMIRZAPUR, SONABHADRA,BHADOHI DISTRICTS

FLUTEPILIBHIT DISTRICT

6. http://odopup.in/en/page/objective 7. http://odopup.in/en/article/cfc-scheme

Incentive by the state government: 90 percent financial project cost reimbursed by state government up to INR 15 crores.

1. COMMON FACILITY CENTRE (CFC) SCHEME

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To benefit artisans/workers/entrepreneurs through financial incentives for the overall development of ODOP products, the state government of Uttar Pradesh has launched Finance Assistance Scheme where

financial assistance of up to INR 20 lakh per applicant is provisioned depending upon the cost of the project. All national, rural and scheduled banks are covered to provide this financial assistance.

The scheme aims to achieve fair pricing for the artisans, weavers, entrepreneurs and exporters of the ODOP products through better marketing. The scheme also provides for on-boarding of

artisans across various e-commerce portals such as Amazon, Flipkart. It also ensures the participation of workers,

artisans, weavers, entrepreneurs and production units in regional, national and international exhibition events.Under the scheme, entrepreneurs

are encouraged to on-board, sell and market their produce on e-commerce portals. The state reimburses On-boarding costs.

Apart from direct loaning by banks, the state government is implementing various schemes under the larger umbrella of other schemes such as The Prime Minister Employment Generation

Programme (PMEGP), Mukhya Mantri Yuva Swarojgaar Yojana, ODOP Vitta Poshan Sahayata Yojana, Pradhan Mantri MUDRA Yojana (PMMY), Stand Up Scheme and Start Up Scheme

Incentive by the state government: - For participation in fairs within and outside the state and country, few incentives aided are: - 75 percent of stall charges - 75 percent of transportation charges - To and fro travel ticket

Incentive by the state government:

Project Cost(Rs. In Lakhs) Margin Money Subsidy

Up to 25

More than 25 to up to 50

More than 50 to up to 150

More than 150

25percent of the Project Cost INR 6.25 lakhs, whichever is less

20percent the Project Cost or INR 6.25 lakh, whichever is high

10percent of the Project Cost or INR 10 lakhs, whichever is high

10percent of the Project Cost or INR 20 lakhs, whichever is less

2.MARKETING DEVELOPMENT ASSISTANCE SCHEME

3. FINANCE ASSISTANCE SCHEME (MARGIN MONEY SCHEME)

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Under its Skill Development and Toolkit Distribution Scheme, the state government aims to fulfil current and future skilled workforce requirements and equip the artisans/workers with relevant

skill sets. The scheme targets skilled and unskilled artisans for training under different modules and certifications and provides a free advanced toolkit to trained artisans.

The scheme’s implementation in Uttar Pradesh has enhanced the state’s export capacity by over 30 per cent since 2018 (the year ODOP was launched by Uttar Pradesh). It has also provided stable income sources to numer-ous impoverished, mostly crafts-men and artisans engaged in the production of traditional products. In just two years, the success of

the ODOP in Uttar Pradesh has inspired several not only other Indian states to adopt similar initiatives for district-level revival of local crafts and products. Promotion of rural entrepreneur-ship across the country has also acted as a major catalyst in pushing for ODOP implementation at the national scale.

ACHIEVEMENTS

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The economy of Uttar Pradesh is primarily dominated by the tertiary sector, followed by primary and secondary sector. The state is known as the food basket of India as it is the leading producer of sugarcane, pointed gourd, peas, potato, muskmelon, watermelon, pumpkin, milk and milk products in the country. Industrial investment & employment promotion policy of Uttar Pradesh 2017 aims to establish Uttar Pradesh as a nationally and internationally

competitive investment destination thereby generating employment and igniting sustainable, inclusive and balanced economic growth of the state. This acts as an umbrella policy under which 20+ sector specific policies are operational for 5 years from the date of notice. Regional imbalance is overcome by providing higher incentives in Bundelkhand & Poorvanchal area than Madhyanchal & Paschimanchal.

3. INDUSTRIAL INVESTMENT &EMPLOYMENT PROMOTION POLICY 2017

Incentive by the state government: - Under the scheme, artisans/ handicraft persons/ udyamis are provided ten days skill and entrepreneurship training by reputed institutes. - Trained people are assessed by related SSC (Sector Skill Council) and certified through RPL (Recognition of Prior Learning). - An honorarium of INR 200 per day is given to each trainee during the training period - After the training, necessary tool kits belonging to the district's ODOP Product are distributed free of cost. - To strengthen skill training, an MOU with Quality Council of India (QCI) has been signed, and Dr A.P.J. Abdul Kalam Technical University (AKTU) and IIT Kanpur are in progress.

4. SKILL DEVELOPMENT AND TOOLKIT DISTRIBUTION SCHEME

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o Stamp duty exemption • 100% in Bundelkhand & Poorvanchal, • 75% in Madhyanchal & Paschimanchal (except GB Nagar & Ghaziabad districts) and • 50% in GB Nagar & Ghaziabad districts.

o Employees’ Provident Fund (EPF) reimbursement - Facility to the extent of 50% of employer’s contribution to the units providing direct employment to 100 or more unskilled workers.

o Net SGST reimbursement • 90% for small industries for 5 years, • 60% for medium & large industries for 5 years, • 70% for mega category industries for 10 years.

o Capital interest subsidy, infrastructure interest subsidy and industrial quality development @ 5% per annum for 5 years.

o 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.

o 100% mandi fee exemption to all new food processing units on purchase of raw material for 5 years.

o Incentivizing employment generation - Units generating minimum employment of 200 direct workers including skilled and unskilled will be provided 10% addition-al Employees’ Provident Fund (EPF) reimbursement facility on employer’s contri-bution.

Key Policy Highlights

I would like to congratulate the Government of Uttar Pradesh for bringing out a progressive, comprehensive and promising industrial development and promotion policy, which aims to enhance the employment

- Sumant Sinha, CEO, Renew Power

Focus Strategies for successful implementationof the policy

Enabling infrastructure

Employment generation

Fiscal incentives

Make in UP

Skilled Manpower

Innovation

Micro, Small & Medium Enterprises

Sectoral approach

Sustainable & Inclusive growth

Investment Promotion andmarketing ‘Brand Uttar Pradesh’

Domestic & Global Environment

Ease of doing business

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Agro-food processing, one of the focus sectors in “Make in India” initiative, has vast prospects for capital investment, employment generation and augmenting rural income in Uttar Pradesh. Uttar Pradesh currently ranks number1 in production of milk, food Grain and sugarcane, number3 in production of fruits and inland fish, the largest producer of horticulture crops like gooseberry, guava, mango, peas, potato etc. and the largest exporter of processed frozen meat in India. Food processing industry is expected to consume 25% of agri produce by 2025.The main objective of the Uttar Pradesh Food Processing Industry Policy 2017 is to ensure fair

and remunerative price of the produce to the growers, value addition to the price of raw produce, promote setting up of food processing industries, easy availability of processed food products to consumers at competitive prices, generation of new employment opportunities to build capacities and increase the skill level of the manpower in this sector.Apart from the incentives provided under the policy, UP also has an enabling infrastructure by housing 15 agro & food processing parks/clusters, 250 regulated market, 225 rural market, 100 National Agriculture Market (eNAM) mandis and 4 agriculture export zones. The state can be divided into 9 agro-climatic zones.

4. U.P. FOOD PROCESSING POLICY 2017

YEIDA gets 1564 investors over the past 4 years investing INR 16,523 crore (USD 2.2 Billion), expected to employ 2,60,413 people once completed which is likely to increase due to Jewar International Airport.

IKEA to invest INR 5500 Crore (USD 763 Mn) in Noida, UP as it is targeting the Delhi-NCR Region for its first Meeting Places concept in India, expecting to generate an employment for 2000 people. It has acquired 48,000 square-metre land parcel in Noida for INR 850 Crore (USD 118 Mn).

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o Capital investment subsidy @ 25% up to INR 50 lakhs (USD 69,444)

o Additional grants-in-aid to mega food parks up to INR 50 Crore (USD 7 Mn) under SAMPADA scheme

o Additional Grants-in-aid @10% under SAMPADA scheme for fruits and vegetables processing industries

o Interest Subsidy • 100% for 5 years to micro and small food processing industries • 7% for 5 years for establishments other than micro and small food processing industries. • 7% for purchase of reefer vehicle/ mobile cooling van for 5 years

o Export promotion incentive @ 50% reimbursement of expenses incurred on exporting processed food samples for test marketing and reimbursement of 25% of transportation cost up to INR 10 lakhs p.a. (USD 13,888) for 3 years. Also 20% reimbursement of free on-board value up to INR 20 lakhs (USD 27,777) per beneficiary p.a. for three years.

o Patent registration fee reimbursement @ 75% and quality certification fee reimbursement @ 50% for internationally accepted quality certification

o Since 2018 till now, altogether 803 applications worth INR 4,109.74 crore (USD 570 Mn) have been received by the government from entrepreneurs for setting up a wide range of factories including • 81 for fruit-vegetable processing, • 232 for consumer products, • 397 for food milling, • 3 for herbal processing, • 35 for milk processing, • 27 for oilseeds processing, • 15 for pulses processing, • 8 for meat processing and • 10 for referrer vans.

o Established at the cost INR 4,074.02 crore (USD 565 Mn), the 101 companies have provided employment to 20,176 people. Besides, construction of 38 food processing factories is underway at the cost of INR 5,031.31 crore (USD 698 Mn) expecting to generate employment for 21,111 by this year end.

Key Policy Highlights

ACHIEVEMENTS

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In India, the largest number of bovine animals is found in Uttar Pradesh. As per the livestock census 2012, Uttar Pradesh is home to 19.6 Mn cows and 30.6 Mn buffaloes. Being the largest producer of milk by contributing to 17% of India’s total production, Uttar Pradesh government is awarding the highest milk producing producer at the district level in the cooperative sector and the first and second highest producers of milk production in the state with Gokul Award and Nand Baba Award to the producer

producing the most milk from cows of indigenous breed in every district and state. The U.P. Milk Policy-2018 targets to encourage setting up of milk industry, reduce loss of milk to ensure that milk producers in rural areas get optimal cost and benefit of their produce, increase per capita daily availability of milk in the state from 335 gm. to 600 gm. and increase milk processing in the state from 12% to 30% through organized sector by augmenting it’s share from current 25% to 60%.

o Food processing sector investments benefitted under UP Food Processing Policy, 2017 • SLMG Private Limited in Lucknow - INR 300 crore (USD 42 Mn), • BL Agro in Bareilly – INR 160 crore (USD 22 Mn), • Khattar Edibles Private Limited is setting a processing plant in Rampur - INR 150 crore (USD 20.8 Mn) • Organic India Private Limited Plant in Barabanki - INR 55 crore (USD 7 Mn), • Patanjali Ayurveda Limited in Gautam Buddha Nagar - INR 2,118 crore (USD 294 Mn), • Haldiram is setting up two new plants worth INR 500 crore (USD 69 Mn), employing 2,000-plus people, in the next three-four years due to fast-track process, government handholding industry and the upcoming Jewar airport and expressways in Gautam Buddha Nagar. • Britannia Industries will invest INR 300 crore (USD 41.6 Mn) to develop an integrated food processing unit. • Associated British Food Plc. (AB Mauri) will invest INR 750 crore (USD 104 Mn) in yeast manufacturing. • PepsiCo's investment of INR 814 crore (USD 113 Mn) in Uttar Pradesh

5. UP MILK POLICY - 2018

NOTIFICATION DATE– 7 JUNE, 2018 EFFECTIVE FOR 5 YEARS

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o Capital subsidy @ 25% on cost of creating infrastructure/ expansion/ diversification

o Interest subsidy • 100% for 5 years to MSME milk processing units • 7% for 5 years to non MSME milk processing units

o 50% subsidy on cost of preparing detailed project report

o Promoting exports • 50% subsidy on cost of sending sample for test abroad • Freight subsidy @ 25% to transport processed product from plant to airport/port for 3 years • 20% subsidy on product freight on board cost for 3 years

o 50% reimbursement of quality certification fees and testing charges

o 75% reimbursement of patent filing fees (one time)

Key Policy Highlights

PCDF, a cohesive body, was formed in 1962 with the aim to develop orga-nized dairying in the State on cooper-ative lines. It was the chosen agency to implement the World Banks prestigious Operation Flood programme in the state. Under the brand name Parag, it sells a range of milk and milk products including- milk, skimmed milk powder, whole milk powder, butter, ghee, and an array of indigenous milk products. Over the years PCDF has expanded, diversified, channelized into new areas, over new dimensions, onto new challenges. Today it features prominently in the national milk grid, supplying milk to mother dairy for sale in Delhi.

About PradeshikCooperative Dairy Federation (PCDF),Uttar Pradesh

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o This has led to 11 private companies in solar energy sector set up their plants in seven districts of the state, namely Bundelkhand, Banda, Chitrakoot, Hamirpur, Mahoba, Jalaun, Jhansi and Lalitpur to date. The solar power units are generating more than 550 MW of electricity daily.

o Solar energy production has also started in Chhibo village of Chitrakoot, with Adani Solar Energy Ltd commissioning of a 25 MW solar power plant.

ACHIEVEMENTS

Uttar Pradesh has 22,830 MW of untapped solar energy which can be utilized through solar parks, mini grid and solar rooftops across the state. While ministry of new and renewable energy, Government of India is providing 40% subsidy for the first 3 kW and 20% subsidy beyond 3 kW and up to 10 kW under grid-connected rooftop solar scheme (phase-II) , state

government is providing a 45% subsidy to construct solar pumps for irrigation. This policy aims to achieve 8% of total electricity consumption from solar energy by targeting an installation of 10,700 MW capacity of solar power by 2022 of which 4,300 MW capacity will be achieved through installation of rooftop solar power plant.

EFFECTIVE FOR 5 YEARS

o Electricity duty @100% exemption from electricity duty for 10 years

o Stamp duty @100% exemption on chargeable stamp duty

o Solar park - state offer to purchase 100% power generated from solar park

o Exemptions for large scale stand–alone solar projects

• 50% exemption on wheeling charges/transmission charges on intrastate sale of power to third party or in case of captive use

• 100% exemption from cross subsidy surcharge and wheeling charges /transmission charges on interstate sale of solar power

o Subsidy for grid connected rooftop solar PV plants @ INR 15,000/KW (USD 208/KW) to the maximum limit of subsidy or INR 30000/KW (USD 417/KW) per consumer on first come first serve basis for the first 100 MW applications submitted online to UPNEDA

o Subsidy for mini grid @ 30% subsidy for the project to be installed in villag-es/majras identified by UPNEDA/state government by the state government

Key Policy Highlights

6. UP SOLAR ENERGY POLICY 2017

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8. http://odopup.in/en/article/marketing-development-assistance-scheme-with-amendments 9. http://www.diupmsme.upsdc.gov.in/

o Besides, the REC Power Distribution Company is setting up a 50 MW solar power plant in Kanpur (Dehat) and 75 MW solar plant in Jalaun. Furthermore, 19,579 solar pumps have been installed to benefit farmers.

o L&T is almost ready with the Ayodhya Detailed Project Report, to convert the town into a solar city by installing solar panels on roofs of houses, government buildings, commercial and industrial establishments etc.

o Under the Ultra Mega Renewable Solar Power Park Scheme of the ministry of new and renewable energy, a 1,200 MW solar power park will be set up by Bundelkhand Solar Energy Limited (BSUL), a joint venture of UPNEDA (Uttar Pradesh New & Renewable Energy Development Agency).and NHPC (National Hydroelectric Power Corporation) Limited in Jalaun.

o Under this scheme, in-principle consent has been given for the installation of 600 MW solar power parks to be set up by TUSCO Limited, a joint venture of UPNEDA and THDC Limited in Jhansi and Lalitpur.

Under the incentive provisions of UP Solar Policy-2017, 100% exemption in stamp and electricity duty for 10 years is being given to investors through Nivesh Mitra - online single window clearance system. This has led to 11 private companies in solar energy sector set up their plants in seven districts - Bundelkhand, Banda, Chitrakoot, Hamirpur, Mahoba, Jalaun, Jhansi and Lalitpur.

UTTAR PRADESH: NIVESHAK MITRA (INVESTOR FRIENDLY) POLICY COMPENDIUM 16

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Uttar Pradesh allows 100% Foreign Direct Investment (FDI) through automatic route for data processing, software development, market research services, etc. Constituting 14% (167 Mn) of India’s total subscribers, UP has 40+ Information Technology (IT) & Information Technology enabled Services (ITeS) Parks and 25+ SEZs (Special Economic Zones) for IT & ITeS. The state also houses a 100 acres IT City in Lucknow with an initial invest-ment of ~INR 1500 Crore (USD 208 Mn) by HCL Group intending to provide employment to 75,000 people.

“To develop IT as a vehicle for holistic socio-economic development of Uttar Pradesh with a focus on creating employment, promoting entrepreneur-ship, innovation and enhanced quality of life” is the vision of the policy.The Uttar Pradesh start-up policy gives thrust to “START IN UP”, to nurture start-up culture using INFUSE model (INcubators – FUnd of Funds – Startup Entrepreneurs). It supersedes the previous IT Policies, including UP IT Policy 2012 and UP IT & Start-up Policy 2016

o Interest subsidy @ 5% per annum for a period of 7 years

o Stamp duty @ 100% exemption on purchase/lease of land/office space/ buildings for IT/ITeS use with condition of commencing operations within 3 years

o Electricity Duty @100% reimbursement for new IT/ITeS units for a period of 10 years post commencement of commercial operations

o Grant on EPF @100% reimbursement of the total EPF amount paid for IT/ITeS Professionals of Uttar Pradesh domicile with employment for continuous 1 year, after start of commercial operation

o Incentive for certification - Maximum reimbursement of 3 certifications with total limit of INR 25 lakhs per unit (USD 34,722).

o Recruitment assistance – INR 20,000 (USD 278) per employee located in Tier-II and Tier-III cities subject to continuous employment of minimum 6 months and annual recruitment of at least 50 students in the field of IT-BPM (Information Technology – Business Process Management), recruited from UP based colleges.

o Patent filing subsidy @ up to 100% of actual filing costs on awarded patents

o Provision for land - Reimbursement up to 25% of the cost of purchase of land from state agencies subjected to certain conditions.

Key Policy Highlights

7. UP IT AND START-UP POLICY 2017

17

8. http://odopup.in/en/article/marketing-development-assistance-scheme-with-amendments 9. http://www.diupmsme.upsdc.gov.in/

Being the largest exporter of consumer electronics in India by housing 196 operating Electronics System Design and Manufacturing (ESDM) companies with INR 7,081 Crore (USD 983 Mn) in productive capital, Uttar Pradesh accounts for 40% of the mobile manufactured in the country, 55% of total India’s mobile component manufacturing units and 26% of total India’s mobile handset manufacturing unit. The state also has 278 colleges providing B.Tech degree and 108 colleges providing M.Tech degree under Abdul Kalam Technical University.UP Electronics Manufacturing Policy 2020 aims to establish 3 Electronics

Manufacturing Clusters (EMCs),• Electronic City in YEIDA near Jewar airport, Gautam Budh Nagar • Defense electronics manufacturing cluster in Bundelkhand • Medical electronics manufacturing cluster in Lucknow-Unnao-Kanpur Zone 3 Center of Excellence (CoE), attract INR 40,000 Crore (USD 5.5 Billion) Investments and provide ~4 Lakh (0.4 Mn) employment opportunities. The proposals submitted and acknowledged before the notification of this Policy shall continue to be governed under UP Electronics Manufacturing Policy 2017.

EFFECTIVE FOR 5 YEARS

ACHIEVEMENTS

8. UP ELECTRONICS MANUFACTURINGPOLICY-2020

UTTAR PRADESH: NIVESHAK MITRA (INVESTOR FRIENDLY) POLICY COMPENDIUM 18

10. http://odopup.in/en/article/skill-development-scheme

o Interest subsidy

o 5% per annum on the rate of interest (investment up to INR 200 Cr (USD 27 Mn) on the loan) is reimbursed up to maximum of INR 1 Cr (USD 138,888) per annum per unit for 5 years (maximum INR 5 Cr (USD 694,444) per unit) to the ESDM units

o Up to 60% of annual interest for 7 years subject to INR 10 Cr (USD 1.3 Mn) per year with an overall ceiling of INR 50 Cr (USD 6.9 Mn) per private ESDM Park.

o Stamp duty

o 100% exemption of stamp duty on purchase/lease of land shall be available for the establishment of individual ESDM units

o 100% exemption of stamp duty on first transaction (owner to developer/Spe-cial Purpose Vehicle (SPV)) and 50% exemption on second transaction (devel-oper/SPV to ESDM Units) shall be available for purchase/lease of land for EMCs/ESDM parks.

o Patent filing @ up to INR 5 Lakhs (USD 6,944) for domestic and INR 10 Lakhs (USD 13,889) for international patents, on actual basis reimbursement

o Land subsidy

o 25% on prevailing sector rates on purchase of land from state agencies in Madhyanchal and Paschimanchal regions.

o 50% on prevailing sector rates on purchase of land from state Agencies in Bundelkhand and Purvanchal regions

o Energy @ 50% exemption of electricity duty shall be provided for a maximum period of 10 years to all ESDM units

o Due to the success of UP Electronics Manufacturing Policy-2017 which had a target of securing INR 20,000 crore (USD 2.7 Bn) investment and generating three lakh jobs, was achieved in record 3 years.

o Investment of INR 200 crore (USD 27.7 Mn) from the Dixon Technologies in consumer electronics.

Key Policy Highlights

ACHIEVEMENTS

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8. http://odopup.in/en/article/marketing-development-assistance-scheme-with-amendments 9. http://www.diupmsme.upsdc.gov.in/

o Upcoming Korean Electronics Firms at Greater Noida

\

• Dreamtech India Pvt. Ltd. • Starion India Pvt. Ltd. • Senatech India Pvt. Ltd. • KH Vatech India • Samkwag India Electronics Pvt. Ltd.

GNIDA’s policy of allotting land within 30 days of applications under its ‘ease of doing business’ policy garners interest from foreign players.

Mr. Kim Nam Deog,MD, KHVatec India Pvt Ltd:

We appreciate the Government of Uttar Pradesh in their ceaseless administrative support, improvements to infrastructure and significant upgrades in Ease of Business in India. We on behalf of South Korea applaud the Uttar Pradesh transformation and stand beside in solidarity.

UTTAR PRADESH: NIVESHAK MITRA (INVESTOR FRIENDLY) POLICY COMPENDIUM 20

10. http://odopup.in/en/article/skill-development-scheme

o Capital subsidy • 25% for units investing up to general industrial units (Level 1) • 20% for units investing more than general industrial units (Level 2)

o 100% exemption from stamp duty

o 100% SGST reimbursement for 10 years

o Case to Case incentives for units investing more than INR 100 Crore (USD 13.8 Mn) along with 15% capital subsidy of project cost or maximum INR 150 crore (USD 20.8 Mn) per unit.

At present, 1800+ MW capacity of bagasse-based co-generation is installed in 64 private sugar mills and non-Bagasse like agro-residues, rice husk based 4 power projects with combined total of 46.50 MW are installed at Mathura, Ghazipur, Gorakhpur and Kanpur. Power genera-tion projects of 201 MW have been installed for captive consumption in paper mills, rice mils, cold storage, etc. Bio Energy Enterprise Promotion Programme 2018 is being executed for effective implementation of various projects such as mission bio-diesel, mission bio-ethanol, mission bio-gas

and mission producer gas run by the UP state bio-energy development board, which utilizes non-arable land and waste farm land for production of bio-energy and with a target to establish 3 mega units. Under this program, industrial units will be classified as • General industrial units (Level 1) – investments < INR 10 crore (USD 1.3 Mn)• General industrial units (Level 2) – investments > INR 10 crore and < INR 100 crore • Mega industrial units – investments > INR 100 crore (USD 13.8 Mn)

9. BIO ENERGY ENTERPRISE PROMOTIONPROGRAMME 2018

Key Policy Highlights

o Praj Industries will set up a compressed biogas (CBG) project for Hindustan Petroleum Corporation Limited (HPCL) at Badaun in Uttar Pradesh. The unit will have the capacity to process 35,000 tons of rice straw as feedstock to gener-ate 5,250 tons of compress biogas. o A MoU was signed between Lucknow Municipal Corporation (LMC), Bharat Biogas Energy Ltd. and JBM Renewable Pvt. Ltd. to set up a 150-tonne capacity plant at Kanha Upvan, a cattle shelter home.

ACHIEVEMENTS

21

India's share in the world data is estimated to be around 20% whereas only 2% in data storage capacity. Recent estimates say India is expected to add more than 750 MW capacity Data Centre by the end of 2025 from the current 375 MW. Uttar Pradesh, a state which has always stood ahead

of the pack in IT/ITES sector, imple-mented UP Data Centre Policy, 2021 with a target to develop 250 MW Data Centre industry in the state by attract-ing investment worth INR 20,000 Crore (USD 2.7 Billion) and establish at least 3 Private Data Centre Parks (with minimum capacity of 40 MW)

10. UP DATA CENTRE POLICY 2021NOTIFICATION DATE18 JANUARY 2021 EFFECTIVE FOR A PERIOD OF 5 YEARS

o 7% capital subsidy to units up to maximum INR 10 Crore (USD 1.4 Mn) on FCI (exclude land & building) to be paid in 10 years

o 60% interest subsidy to parks on annual interest for 7 years subject to maxi-mum INR 50 Crore (USD 6.9 Mn) per park

o Land subsidy

o 25% on prevailing sector rates in Madhyanchal & Paschimanchal; and

o 50% on prevailing sector rates in Bundelkhand & Poorvanchal up to maximum INR 75 Crore (USD 10.4 Mn) to parks & units

o Stamp duty exemption @ 100% on first transaction and @ 50% on second transaction to both parks & units

o 100% Electricity duty exemption for 10 years to units

o Dual power grid power supply to first 3 DC parks established in the state. Energy dept. to bear the cost of second grid. For units it is available on demand at applicable charges

o Transmission & wheeling charges exemption for 25 years @ 50% on intrastate sale of power; @ 100% for intrastate transmission system & for 5 years import of energy from outside UP to both parks & units.

Key Policy Highlights

o Praj Industries will set up a compressed biogas (CBG) project for Hindustan Petroleum Corporation Limited (HPCL) at Badaun in Uttar Pradesh. The unit will have the capacity to process 35,000 tons of rice straw as feedstock to gener-ate 5,250 tons of compress biogas. o A MoU was signed between Lucknow Municipal Corporation (LMC), Bharat Biogas Energy Ltd. and JBM Renewable Pvt. Ltd. to set up a 150-tonne capacity plant at Kanha Upvan, a cattle shelter home.

ACHIEVEMENTSNO MENTION OF BENEFITS RECEIVED UNDER THIS SCHEME

UTTAR PRADESH: NIVESHAK MITRA (INVESTOR FRIENDLY) POLICY COMPENDIUM 22

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o 13 companies express interest in setting up data centres in Noida with INR 22,000-crore (USD 3.06 Bn) investment

o UP is all set to establish a data centre park in Noida which is likely to attract an investment of INR 20,000 crore (USD 2.7 Billion) offering employment to thousands of people. Renowned companies like Microsoft (rest 1,800 crore/ USD 250 Mn), Adani Group (INR 2,500 crore/USD 347 Mn) and MAQ (INR 250 Crore/USD 34.7 Mn) have recently bought land to set up data centres in Noida.

ACHIEVEMENTS

Covid-19 pandemic wrecked a havoc in the most populous state of India which saw a reverse migration of 3.5 Mn migrant workers across 31 districts of Uttar Pradesh which saw 25,000+ returnee migrant workers each. The

state government saw this as opportunity rather than a crisis by registering each and every worker and mapping their skill to provide employment opportunities

NOTIFICATION DATE14 AUGUST, 2020 EFFECTIVE FOR 30 MONTHS, IN CASE OF MEGAAND MEGA PLUS CATEGORIES, AND 42 MONTHS FOR SUPER MEGACATEGORIES OF INDUSTRIAL UNDERTAKINGS.

o Hiranandani Group will invest INR 750 crore (USD 104 Mn) in building a data centre in Greater Noida.

o ST Telemedia Global Data Centres India (STT GDC India) is investing INR 1,100 crore (USD 152 Mn) for establishing a 35MW Greenfield data centre facility in Noida, Uttar Pradesh to be completed by Q2 of FY 2022.

11. POST COVID-19 ACCELERATEDINVESTMENT PROMOTION POLICY FORECONOMICALLY BACKWARD REGIONS 2020

23

Key Policy Highlights

o Under this policy, Ankur Udyog proposes to set up a steel unit in Gorakhpur.

ACHIEVEMENTS

ATMA NIRBHAUTTAR PRADESH ROZGAR ABHIYAN, launched on 26 June, 2020 as an extension to Garib Kalyan Rojgar Abhiyan, is intensely focused towards providing employment, promoting local entrepreneurship and creating partnership with industrial associations and other organizations to provide employment opportunities to reverse migrants as per their mapped skill/expertise. The state government is expected to employ 1.25 crore

people under these schemes, out of which 6 Mn will get employment in rural areas, and 4 Mn under MSMEs.

Apart from the above, UP launched post COVID-19 Accelerated Investment Promotion Policy for economically backward regions 2020 to fast-track the implementation of industrial investment by reducing demographic risk due to COVID-19 with a focus on backward regions of the state. Applications were accepted only for 6 months from the date of the policy.

Following incentives to mega and mega plus category of industrial undertakings which will have to initiate commercial production within 30 months and super mega categories within 42 months from the notification date of this policy:

o 70% reimbursement of net SGST for 12 years in Madhyanchal subject to 200% of eligible capital investment (made during the policy period) and 15 years in Poorvanchal and Bundelkhand subject to 300% of eligible capital investment (made during the policy period).

o 5% Capital interest subsidy p.a. for 5 years up to INR 1 Cr (USD 138,889).

o 50% Electricity duty exemption for 10 years. Same subsidy will apply for electricity captive power plant for self-use.

Minimum eligibility requirements

Madhyanchal Bundelkhand & Poorvanchal

Category

Mega

Mega Plus

Super Mega

Capital investment of more than INR 150 crore (USD 20.83 Mn) but less than INR 300 crore (USD 41.67 Mn)

Capital investment of more than INR 300 (USD 41.67 Mn) crore but less than INR 750 crore (USD 104.17 Mn)

Capital investment of more than INR 100 crore (USD 13.89 Mn) but less than INR 250 crore (USD 34.72 Mn)

Capital investment of more than INR 250 (USD 34.72 Mn) crore but less than INR 500 crore (USD 69.44 Mn)

Capital investment of INR 750 crore (USD 104.17 Mn) and above

Capital investment of INR 500 crore (USD 69.44 Mn) and above

UTTAR PRADESH: NIVESHAK MITRA (INVESTOR FRIENDLY) POLICY COMPENDIUM 24

o 100% SGST reimbursement to multiplex/cinema hall ownero Additional subsidy • up to INR 25,00,000 (USD 34,722) will be provided to cast at least 5 `artists from UP • up to INR 50,00,000 (USD 69,444) will be provided in case all the artists hail from UPo Processing Subsidy of 50% of the processing cost or INR 50,00,000 (USD 69,444), whichever is less is granted if any film producer, shoots and processes the film in the stateo Subsidy for setting up film institute at 50% of its cost or a maximum of VINR 50 lakh (USD 69,444), whichever is less, will be provided (excluding Noida/ Greater Noida)

60% of the box office collection of films at national level comes from Uttar Pradesh, NCR and Mumbai with Uttar Pradesh bagging “Most Film Friendly State Award” for two consecutive years at National film festival. UP stocks 500+ multiplexes and single screens apart from the film city at Noida and hosts “Shaan-e-awadh”, an annual international film festival based on cultural, tourism, historical heritage and composite culture of Uttar Pradesh since 2011.

UP Film Policy 2018 will be implemented by the nodal agency - UP Film Bandhu that aims to create a holistic ancillary infrastructure such as film studios, processing labs, Film and Television training institute and film cities to promote and publicize the mythological and historical heritage and rich traditions of the state. Other than reviving closed and loss-making cinema halls, the state has also established a “Film Development Fund” to finance the policy.

12. UP FILM POLICY 2018

Key Policy Highlights

Subsidies available to a film producer under the policy

Subsidies available to a National/International Award-winning film producer/Director

Movie details shot in the state

Maximum amount of grant whenhalf of its total shooting days in UP

Maximum amount of grant when two-third of its total shooting days are in UP

Maximum amount of grant when halfof its total shooting days in UP

Maximum amount of grant when two-third of its total shooting days are in UP

First movie (INR)

1 Crore(USD 138,889)

2 Crore(USD 277,778)

1 Crore(USD 138,889)

2 Crore(USD 277,778)

1.25 Crore(USD 173,611)

2.25 Crore(USD 312,500)

1.75 Crore(USD 243,056)

2.75 Crore(USD 381,944

1.50 Crore(USD 208,333)

2.50 Crore(USD 347,222)

1.75 Crore(USD 243,056)

2.75 Crore(USD 381,944)

2 Crore(USD 277,778)

3 Crore(USD 416,667)

2.25 Crore(USD 312,500)

3.25 Crore(USD 451,389)

Second movie (INR) Third movie (INR) Fourth movie (INR) Fifth or more (INR)

25

1. Toilet-ek Prem katha

2. Bareilly ki Barfi

3. Mom

4. Jolly LLB 2

5. Raid

SOME MOVIES SHOT INTHE STATE INCLUDE

1. Amitabh Bachchan

2. Priyanka Chopra

3. Disha Patani

4. Anurag Kashyap

5. Boney Kapoor

SOME CELEBRITIES WHOBELONG TO UP INCLUDE

ACHIEVEMENTSo The Uttar Pradesh government has cleared subsidy worth over INR 11.2 Crore (USD 1.5 Mn) to be trans-ferred through RTGS for 16 Hindi and 6 Bhojpuri films including 'Anaarkali of Aarah', 'Shaadi Main Zaroor Aana', 'Sonu Ke Titu Ki Sweety' and 'Behen Hogi Teri'. o In March 2019, Uttar Pradesh Chief Minister had personally given away cheques worth INR 7 crores (USD 972,222) to 14 filmmakers for movies shot in the state and had even suggested a film on Prayagraj's 'Kumbh'. The government has also given subsidy to hit films like Boney Kapoor's "Mom", "Toilet-- Ek Prem

Katha" and "Nil Batey Sannata" among others. o A Detailed Project Report is submitted to the state government by CBRE South Asia Private Limited for construction of a world-class 1000 acres film city in GB Nagar at an estimated cost of INR 6,000 Crore (USD 833 Mn)

UTTAR PRADESH: NIVESHAK MITRA (INVESTOR FRIENDLY) POLICY COMPENDIUM 26

10. http://odopup.in/en/article/skill-development-scheme

Key Policy Highlights

NOTIFICATION DATE8 JUNE, 2018 EFFECTIVE FOR 5 YEARSWhile India has a stellar story of growth in pharmaceutical sector over the decades, Uttar Pradesh is slowly catching up with 11,985 pharmacies being registered during 2019-20. The state has a 3-tier public healthcare infrastructure, comprising community health centres (CHCs), primary health centres (PI-ICs) & sub-centres. UP accounts for 17% of national sales in terms of value, houses 9 existing pharma clusters, 1 biotech park boasting 38.2% growth in export (FY16-19).

UP Pharmaceutical Policy, 2018 was launched with an aim to promote establishment of specialized pharmaceutical parks and create Intellectual Property (IP) in the pharmaceuti-cal sector by facilitating R&D institutions and to manufacture AYUSH Products and promote AYUSH Healthcare at a large scale. Focus districts under this policy for setting up pharma parks will include Gautambuddha Nagar, Ghaziabad, Agra, Kanpur, Lucknow, Jhansi, Gorakhpur, Varanasi and Allahabad.

o Patent filing subsidy o 100% of actual filing costs on domestic patents o 50% of actual filing costs on international patentso Quality certification subsidy @ 75% of cost incurred for ISO certification and 50% of cost incurred for BIS certification o Support for setting up R&D institutes @ 60% of annual interest on loan taken reimbursemento Support for clinical trials @ 75% of total expenditure reimbursemento Support for contract / sponsored research @ 50% subsidy on eligible project cost to institutes situated within UPo SGST reimbursement, stamp duty exemption, capital interest subsidy, infrastructure interest subsidy, industrial research subsidy, electricity duty & mandi fee exemption as per incentives under UP Industrial Investment & Employment Promotion Policy (IIEPP) 2017o Horizontal pharma park developed over min 10 acres of land and vertical pharma park developed over min 3 acres of land will be provided same incentives as provided to private industrial parks under IIEPP 2017

13. UP PHARMACEUTICAL INDUSTRYPOLICY - 2018

ACHIEVEMENTSo The state government has identified 2000 acres of land each in Pilibhit and Lalitpur, Bundelkhand to build parks for bulk drugs and medical devices.

27

Being a landlocked state, Uttar Pradesh has excellent connectivity across the nation. Besides being located on the Golden Quadri-lateral, UP is home to 2nd highest network of national highways in India, existing Yamuna and Agra-Lucknow Expressways apart from upcoming Poorvanchal, Bundelkhand and 8 lane Ganga expressway. The state also owns the highest railway network with 57% share of Amritsar-Kolkata industrial corridor - Eastern Dedicated Freight Corridor (EDFC) and 8.5 % share of Delhi-Mumbai industrial corridor - Western Dedicated Freight Corridor (WDFC). 1000 miles of inland waterways with national waterway -1 connecting Allahabad to Haldia port is located in UP.The Uttar Pradesh Warehousing and Logistics

Policy 2018 aims at complementing the UP IIEP Policy 2017, and strengthen the state’s foothold in the logistics sector. There are approximately 174 warehouses in UP with 71.84 lakh MT capacity. Since this is inade-quate, this policy targets to promote private investments and upgrade the existing warehousing and logistics infrastructure to boost economic activities in both primary and secondary sectors. Dadri, the intersecting region of EDFC and WDFC will be a logistics zone besides promoting green and innovative practices to develop a competitive logistics infrastructure in the State. The state has accorded industry status to warehousing & logistics sector thereby reducing cost of setting up by a fair margin.

Key Investment ZonesACHIEVEMENTS

o UP Government approves the proposal by M/s Nanak Logistics Private Limited to set up the warehousing unit in Bhukapur village of Sarojini Nagar, Lucknow at an estimated cost of INR 85 crore (USD 11.8 Mn) spread over an area of 86,000 square meters under this policy.

• Dadri Noida Ghaziabad investment region• Meerut Muzaffarnagar investment region• DDU Nagar – Varanasi – Mirzapur investment region• National Investment & Manufacturing Zones at Jhansi and Auraiya• Lucknow-Unnao-Kanpur region• Prayagraj-Varanasi region

Key Policy Highlightso Capital interest subsidy o 5% for 5 years up to INR 50 lakhs (USD 69,444) for logistics unit o 5% for 5 years subject to overall ceiling of INR 10 Cr (USD 1.3 Mn) for Private logistics Parko Infrastructure Interest subsidy o 5% for 5 years up to INR 5 Cr (USD 694,444) for logistics unit o 5% for 5 years up to INR 10 Cr (USD 1.3 Mn) for private logistics Parko 100% exemption on electricity duty for 10 yearso 50% concession on land use conversion chargeso 75% exemption of development chargeso Quality certification of warehouses @ 50% of cost of quality certification up to INR 1.5 lakhs (USD 2,083) reimbursemento EPF reimbursement facility @ 50% reimbursement on providing direct employment to 100 or more employees

14. U.P. WAREHOUSING & LOGISTICSPOLICY 2018

NOTIFICATION DATE27 FEBRUARY, 2018 EFFECTIVE FOR 5 YEARS

UTTAR PRADESH: NIVESHAK MITRA (INVESTOR FRIENDLY) POLICY COMPENDIUM 28

Key Policy Highlights

NOTIFICATION DATE24 AUGUST, 2017

- DANIEL BIRCHER, CEO OF ZURICH AIRPORT

Uttar Pradesh becomes an untapped state when it comes to Civil Aviation providing an immense amount of scope for development. At present, there are 2 international airports at Lucknow & Varanasi with a cargo terminal operational at Varanasi Airport, 5 domestic airports at Allahabad, Gorakhpur, Kanpur, Agra and 15 upcoming regional airports. Air Cargo traffic is growing as 1800 Mn tons of freight is handled by Lucknow and Varanasi in 2019-20. Apart from the ambitious Jewar and Kushinagar International Airport projects, the state has 4th highest number of helipads at 68 in India.Regional Connectivity Scheme (RCS) of Union Government under Ude Desh ka Aam Nagrik (UDAN) is greatly building the state’s aviation sector as 6 Projects are under progress in Phase 1 and Phase 2 whereas 5 new projects at Ayodhya, Kushinagar, Sarsawa, Ghazipur & Meerut are identified under RCS phase 3.

The policy provides support for development of air cargo hubs and fulfillment centers along with facilitating the growth of Mainte-nance, Repair and Overhaul (MRO) compa-nies in the state.

o 0 VAT on Aviation Turbine Fuel (ATF) for 10 years for RCS airports • Zero for 01 year for connecting non-RCS airports in UP with non-RCS airports outside U.P. • Zero for 01 year for connecting non-RCS airports within U.P.o Viability Gap Funding (for 50% of total seat) @ 20% State Share as per RCSo Electricity @ INR 4/unit up to 30000 unitso Reimbursement of S-GST on sale of air tickets • 100% reimbursement for 3 years for RCS flights • 100% reimbursement for 1 year for new flights in connecting non-RCS airports within U.P.o Zero charges for airport parking/night halt at RCS airports (for 3 years) at GoUP Airportso Office space (100 sqm) for airlines at GoUP RCS airports @ Zero Rental (for 3 years) at GoUP Airportso Route Navigation & Facilitation Charges (RNFC) @ 50% of RNFC (up to INR 2000 (USD 27.78)) will be reimbursed on RCS airports or flights connecting divisional headquarters (for 3 years)

We are happy to work in Uttar Pradesh as this region has huge potential to explore. This region has infrastructure, traffic and a big catchment area

15. CIVIL AVIATION PROMOTIONPOLICY OF UP 2017

PASSENGER TRAFFIC FOR 2019-20

AGRA16,735

KANPUR(CHAKERI)212017

PRAYAGRAJ414064

GORAKHPUR665703

VARANASI3010702

LUCKNOW5433757

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SOME OF THE TOURISMCIRCUITS IN UP

NOTIFICATION DATE16 FEBRUARY, 2018 EFFECTIVE FOR 5 YEARS

Tourism for any state is not just revenue generating factor but a brand ambassador by itself. Average annual footfall of 238 Mn tourists (14% share in India) visit Uttar Pradesh making it the 1st highest state with domestic tourist footfall share of 23.1% and 3rd highest state with foreign tourist footfall share of 15.1% in India for 2019. The state has umpteen number of tourist attractions with religious tourism taking a center spot while it hosts one of the 7 Wonders of the World – Taj Mahal at Agra.

UP Tourism Policy 2018, has been launched with an ambitious target to become most preferred tourist destination in India by 2023 by attracting investments with a target of INR 5,000 Crore (USD 694 Mn) to provide employ-ment to ~ 5 Lakh people per year. Promotion of theme-based tourism like MICE tourism, eco-tourism, heritage tourism, agri tourism, etc. is part of the broader theme of augment-ing “Brand UP”.

ACHIEVEMENTSo https://www.hindustantimes.com/noida/zurich-internation-al-wins-bid-to-build-india-s-biggest-airport-at-jewar/story-KFOwN8QJWSqy4VhEFqQzrM.html

1. The Buddhist Circuit – Kapilvastu, Sarnath, Kushinagar, Kaushambi, Shravasti, Sankisa2. The Ramayana Circuit – Ayodhya, Chitrakoot, Shringverpur3. Wildlife & Eco Tourism Circuit – Dudhwa, Pilibhit, Katarniaghat6. The Krishna/Braj Circuit – Vrindavan, Govardhan, Mathura,Gokul, Barsana, Nandgaon4. The Bundelkhand Circuit – Charkhari (Mahoba), Chitrakoot, Kalinjar, Jhansi, Lalitpur, Deogarh

16. U.P. TOURISM POLICY 2018

1. Allahabad

2. Ayodhya

3. Vrindavan

4. Govardhan

5. Agra

1. Agra

2. Sarnath

3. Varanasi

4. Fatehpur Sikri

5. Jhansi

TOP 5 TOURIST ATTRACTION FOR:

DOMESTICTOURISTS

FOREIGNTOURISTS

UTTAR PRADESH: NIVESHAK MITRA (INVESTOR FRIENDLY) POLICY COMPENDIUM 30

Key Policy Highlights

Key Policy Highlights

o Capital Investment Subsidy • 15% to new hotels/resorts up to INR 10 Cr (USD 1.39 Mn) • 15% to wellness centres up to INR 10 Cr (USD 1.39 Mn) • 10% to new sports resort up to INR 1 Cr (USD 138,889) • 15% to new budget hotels up to INR 1.5 Cr (USD 208,333) • 20% to new tented accommodation up to INR 50 lakhs (USD 69,444) • 25% to new heritage properties up to INR 1.5 Cr (USD 208,333) and moreo 5% interest subsidy for 5 years up to INR 2.5 Mn (USD 34,722) per annum to all new unitso 100% stamp duty exemption on sale/lease/transfer for the first transactiono 100% conversion and development charges waiver to all tourism unitso 100% skill development subsidy reimbursement of hospitality related course fees for up to INR 10,000 (USD 138.89) per person and subsidy of INRo 0.5 Mn individual/group in reviving the indigenous and scarce art, music, folk dance, craft and cuisineo 100% excise license fee exemption to heritage hotels set up in rural areas

o Land subsidy @ 50% of land cost (30% in GB Nagar district) on land purchase from state agencieso 100% stamp duty exemption (75% in GB Nagar district)o SGST refund for 10 years @ 90% to MSME units, @ 80% to mega unitso 100% electricity duty exemption to new units for 10 yearso 25% capital investment subsidy for plant and machinery based on investmento Interest subsidy @ 7% up to INR 1.5 Cr (USD 208,333) (up to INR 75 lakhs (USD 104,167) for GB Nagar) for 7 years for procurement under Technology Upgradation Fund Scheme (TUFS)o Infrastructure interest subsidy @ 5% up to INR 1 Cr (USD 138,889) for 5 years per unit for developing infrastructural amenities

NOTIFICATION DATE25TH JANUARY, 2018 Being the largest exporter and producer of handmade carpets, 2nd largest producer of leather, 3rd highest Producer of fabric (13.24% of national production) in the country and 5th in silk production and handlooms (6.71% of total handlooms in India), Uttar Pradesh has 85 spinning mills, 74 textile mills in non-SSI sector, 47 approved textile parks/clusters, 2.58 lakh handloom wavers, 4.21 lakh power loom weavers and 15 major handloom production centers. Since textile industry is a labour intensive one, Uttar Pradesh provides skilled, unskilled and semi-skilled labour in large number to the industry. Through this policy, focus is on

promotion of all sub-branches of the textile manufacturing value chain viz. sericulture (including chaaki and koya production), reeling, handloom, spinning, weaving, knitting, texturising, dyeing, processing, garmenting, and all types of technical textiles and jute products. The Government of Uttar Pradesh intends to operate various scholarship/ incentive schemes for the marginal weavers, assist in developing infrastructural facilities in the textile parks proposed under Scheme of Integrated Textile Parks (SITP) of Ministry of Textiles, Government of India and develop clusters for farming of sahtoot and cocoon threading units in the state.

17. HANDLOOM POWER LOOMSILK TEXTILE GARMENTING POLICY, 2017

31

Key Policy Highlightso Capital subsidy • 10% of FCI (except land cost) up to INR 10 Cr (USD 1.39 Mn) and • 15% up to max INR 15 Cr (USD 2.08 Mn) in Bundelkhand region for Mega Anchor & Anchor D&A unit • 5% of FCI (except land cost) up to max INR 5 Cr (USD 694,444) and • 7.5% up to max INR 7.5 Cr (USD 1.04 Mn) in Bundelkhand region for MSME & vendor unit • 10% of FCI up to INR 10 Cr (USD 1.39 Mn) and • 15% of FCI up to a limit of INR 15 Cr (USD 2.08 Mn) in Bundelkhand region for private defence & aerospace parks • 20% up to INR 1 Cr (USD 138,889) for setting up ETP (Mega Anchor & Anchor units)o Grant for setting up of common facility centres @ 25% wherein 75% grant has been provided by GoI o 100% stamp duty exemption

NOTIFICATION DATE5 DECEMBER, 2018 EFFECTIVE FOR 5 YEARS

In February 2020, the state government organized Defence Expo-2020 with the theme ‘India: The Emerging Defence Manufacturing Hub’ in Lucknow seeing participation from 1028 Indian companies and 172 foreign companies and received proposals worth INR 5 lakh crore (USD 70.93 Bn) for investments in key sectors such as IT & ITeS, dairy, electronics, tourism, manufacturing, renewable energy, agro, and food processing. The public sector heads existing in UP include 9 ordinance factories and 3 Hindustan Aeronautics Limited (HAL) manufacturing units at Kanpur, Lucknow and Korwa. UP Defence Industrial Corridor (UPDIC) set up by Uttar Pradesh Expressways Industrial

Development Authority (UPEIDA) with a proposed land of ~5120 hectares in the Bundelkhand region will provide access to strong ancillary base and potential to generate 16,700 employment opportunities (current estimate). It consists of the following six nodal points at Agra, Aligarh, Chitrakoot, Jhansi, Kanpur & Lucknow. This policy is aimed at establishing the state as D&A manufacturing hub in the country, promote establishment of private D&A park in the state by attracting an investment of INR 50,000 Crore (USD 6.9 Billion) in the next 5 years, generating 2.5 lakh jobs in the defence and aerospace manufacturing sector.

18. U.P. DEFENCE & AEROSPACE UNIT &EMPLOYMENT PROMOTION POLICY 2018 & 2019 (FIRST AMENDMENT)

o Quality development subsidy @ 5% up to INR 1 Cr (USD 138,889) for 5 years per lab for research and quality improvemento EPF reimbursement for 5 years to new unit @ 50% with min 100 workers & @ 60% with min 200 workers special incentives for textile parkso Stamp duty exemption @ 100% to developer (except in GB Nagar district), and @ 50% to first buyer of plot/unito interest subsidy @ 50% on purchase of land for 7 years up to INR 50 Cr (USD 6.94 Mn); and @ 60% for 7 years for construction of staff-quarters, hostel/dormitory.

UTTAR PRADESH: NIVESHAK MITRA (INVESTOR FRIENDLY) POLICY COMPENDIUM 32

o Transport subsidy (Mega Anchor & Anchor units) @ 50% subsidy up to consolidated maximum INR 2 Cr (USD 277,778) for transporting imported plant and machinery from logistic park/ transport hub/ port/ harbour to the production unit @ 30% subsidy up to INR 1 Cr (USD 138,889) (per annum for 5 years) for transporting finished goods to logistic park/ transport hub/ port/ harbour from the production unito Technology transfer (Mega Anchor & Anchor units) @ 75% for the first 5 units and @ 50% towards the next 5 units up to INR 50 lakhs (USD 69,444) per unit

ACHIEVEMENTSo In 2020, investments of approximately INR 3,700 crore (USD 513.89 Mn) were announced by Ordnance Factory Board (OFB)/Defence Public Sector Undertakings (DPSUs) & private industries for Uttar Pradesh defence corridors and UPEIDA inked 55 Memorandum of Understandings (MoUs) with private industries, worth potential investments of INR 7449.33 crore (USD 1 Bn).

o Among the 19 companies, following are some of the major investors.

ACHIEVEMENTSo In 2020, investments of approximately INR 3,700 crore (USD 513.89 Mn) were announced by Ordnance Factory Board (OFB)/Defence Public Sector Undertakings (DPSUs) & private industries for Uttar Pradesh defence corridors and UPEIDA inked 55 Memorandum of Understandings (MoUs) with private industries, worth potential investments of INR 7449.33 crore (USD 1 Bn).

o Aerospace giant Airbus is likely to invest INR 25,000 crore (USD 3.47 Bn) for production of military transport aircraft in a joint venture with Government of Uttar Pradesh

Company

Anchor Research Lab LLP

Land Allotted (Hectares)

10 550 76

Sadicate Innovation International 10 150 20.8

Jai Sai Anu Overseas 4.5 100 13.8

Milkar Defense Pvt Ltd 4 98.25 13.6

Tractrix Auto Dynamics 2 40 5.5

Investment (INR Crore) USD Mn

33

Key Policy Highlightso Capital interest subsidy, infrastructure interest subsidy, industrial quality development subsidy @ 5% per annum for 5 yearso Land use conversion @ 100 % exemption for converting agricultural land to industrial land of agriculture land development authoritieso Stamp duty exemption in accordance with the CLAUSE 5.1 of UPIIEPP 2017o SPV Formation: The Government will provide grant of equal proportion of contribution by the alloteeso 100% EPF reimbursement for 5 years from the date of commencement of the unit for MSMEso 100% electricity duty exemption to new units for 10 yearso Electricity charges reimbursement @ one rupee per unit for 5 years from the date of production for MSMEs

NOTIFICATION DATE15 DECEMBER, 2017

Uttar Pradesh is the number 1 state to have largest number of MSME’s in India with ~ 90 lakh MSME’s (14.2% of total MSME), out of which 89.64 lakh micro enterprises and 36,000 small enterprises exist in UP which are owned by 81 lakh male owners and 9 lakh female owners. MSME accounts for 45% of UP’s exports (INR 1 trillion or USD 13.89 Bn) and 65% of the state’s annual industrial output. Leading exporter of handicrafts, engineering goods, carpets, readymade garments, leather products, largest exporter of consumer electronics. Being the 2nd biggest employer after agriculture

sector by employing 16.5 Mn people (2.8 Mn women), Government of UP launched UP MSME & Export Promotion Policy, 2017 with an aim to attain 15% annual growth in creation of MSMEs and employment opportunities. Department of MSME & Export Promotion have launched “MSME Sathi” App on 15 May 2020 to address the problems such as loan, employment, working capital etc. faced by the MSMEs. So far, 5653 MSMEs have registered themselves on the portal and around 2829 issues are raised out of which 900 issues have already been resolved.

ACHIEVEMENTSo UP drew INR 4-lakh-crore investments in MSMEs since 2017, benefitting ~2.6 crore people getting direct and indirect employment opportunities o To promote the micro, small and medium enterprises (MSME) sector, Uttar Pradesh has mandated 25 per cent procurement by the state government departments and public sector undertakings (PSU) from the state MSMEs. Besides, the state government has fixed sub-quota of 3 per cent and 4 per cent for compulsory procurement from the MSME units owned by women and scheduled caste/scheduled tribe (SC/ST) entrepreneurs respectively

19. UP MSME & EXPORTPROMOTION POLICY 2017

UTTAR PRADESH: NIVESHAK MITRA (INVESTOR FRIENDLY) POLICY COMPENDIUM 34

Uttar Pradesh government in a major landmark decision promulgated MSME Act 2020, through which any entrepreneur willing to establish his/her unit in UP, will be provided an acknowledgement in 72 hour (provisional certificate) which will exempt him/her from inspection of any department for 1000 days. To promote the micro, small and medium enterprises (MSME) sector, Uttar Pradesh has mandated 25 per cent procurement by the state government departments and public sector undertakings (PSU) from the state MSMEs. Besides, the state government has fixed sub-quota of 3 per cent and 4 per cent for compulsory procurement from the MSME units owned by women and Scheduled Caste/Scheduled Tribe (SC/ST) entrepreneurs respectively.

This Act shall not be applicable on enterprises

submitting Declaration of Exceptions Intent to manufacture following item like

o Tobacco products, gutka, panmasala etc.; o Alcohol, aerated drinks, carbonated products etc.; o Manufacturing of crackers; o Plastic carry bags of less than 40 microns or plastic carry bags of the thickness as classified in prohibited category from time to time by the State Government;o Products notified under "Red Category" by Uttar Pradesh Pollution Control Board. However, industries categorised under "Orange" and "Green" category shall be eligible to establish and operate after getting due permissions from the regional office, State Pollution Control Boardo Other such products which are categorised in prohibitory list from time to time

MSME Parks in Noidao Swastik Industrieso United Logisticso Syria Impexo DR Auto Industries o Rushya Agritech Pvt Ltd o MV Exim Pvt Ltdo Ranexa Medicalo Shree Balaji Printing &o Gapdec Infratech Ltd.

Toy companies coming up in Noidao Fun Zoo Toys Indiao Fun Ride Toys LLP o Super Shoeso Ayush Toy Marketingo Sunlord Apparelso Bharat Plasticso Jai Shree Krishnao Ganpati Creationso RRS Traders

YEIDA expects the toy park in Noida which saw a combined investment of INR 410 crore (USD 57 Million) to provide permanent jobs to 6,157 people after 134 manufacturers complete land acquisition.

20. THE UTTAR PRADESH MICRO, SMALL ANDMEDIUM ENTERPRISES (ESTABLISHMENT ANDSIMPLIFICATION) ACT, 2020

35

NOTIFICATION DATE13TH AUGUST 2019 EFFECTIVE FOR 5 YEARSThe EV market in India is estimated to be around INR 80 lakhs (USD 111,111) by 2020, and approximately 5 crores (USD 694,444) by 2030. Electric vehicles storage opportunities (in GW) in India is anticipated to grow at CAGR 44% till 2022. The state of Uttar Pradesh is the 3rd largest beneficiary of GOI’s FAME scheme (2019) and has the highest number of registered EVs amounting to 1.39 Lakh. The state’s capital - Lucknow is one of the 10-cities identified for pilot project of Multi-Modal Electric Public Transport under FAME India Scheme.UP Electric Vehicle Manufacturing Policy 2019 assures shift from Internal Combustion (IC) engines to Electric Vehicles (EVs) and develop a strong and sustainable ecosystem for battery management, right from production stage to disposal stage. Therefore, the policy contains 3-components:(1) Manufacturing (2) Charging infrastructure (3) Demand creation. Ambitious targets of the policy are

noteworthy:1. To attract investments of over INR 40,000 crore (USD 5.5 Bn) in the next five years across the electric mobility ecosystem with an employment potential for 50,000 people.2. To launch 1,000 electric buses (BEVs/FCEVs) and achieve 70% EV public transportation on identified green routes in identified 10 EV cities by 2030. 3. To phase out all conventional commercial fleets and logistics vehicles and achieve 50% EV mobility in goods transportation in identified 10 EV cities by 2024 and all cities by 2030. 4. To roll out nearly 1 Mn EVs, combined across all segments of vehicles, by 2024. 5. To bring in manufacturing units of high-density power storage of at least 5 GW capacity in the next five years for smooth electric mobility.6. To set up nearly 200,000 slow and fast charging, swapping stations by 2024.

21. UP ELECTRIC VEHICLE (EV)MANUFACTURING POLICY 2019

Key Policy Highlightso Land subsidy of 25% of actual cost or prevalent circle rate of land whichever is lesso Capital interest subsidy @ 5% p.a. for 5 years up to INR 50 lakh (USD 69,444) p.a., to Large, Anchor EVMU/EBUs & MSMEo Infrastructure interest subsidy @ 5% p.a. for 5 years up to INR 1 Cr (USD 138,889), to Large, Anchor EVMU/ EBUs & MSMEo Energy - 100% exemption to Large, Anchor EVMU/EBUs and MSME units for 10 yearso Patent and Certification - 75% reimbursement of patent registration cost and 50% reimbursement of quality certification charges for MSME onlyo Capital subsidy for charging facility @ 25% on FCI (excluding land cost) to first 1000 charging stations up to INR 6,00,000 (USD 8,333) per charging stationo Capital interest subsidy for charging station @ 50% reimbursement on FCI (excluding land cost) for setting up hydrogen generation and fuelling plants to first 10 units, subject to max INR 50 lakh (USD 69,444) per unit.o Vehicle registration fee @ 100% exemption from vehicle registration fees (only first 100,000 buyers, and vehicle manufactures in UP)

ACHIEVEMENTS

UTTAR PRADESH: NIVESHAK MITRA (INVESTOR FRIENDLY) POLICY COMPENDIUM 36

All factories and establishments engaged in the manufacturing process will be exempted from the operation of all labor laws for a period of 1000 days. The key features of the new order are:o All details of employed workers will be maintained electronically.o The worker will be paid above minimum wages of the state government and within the time limit as per the Act.o The worker wages will be credited to their

bank account through Direct Benefit Transfer (DBT).o All rules and regulations related to safety and security of the workers are applicable.o Duration of work per day will not exceed 11 hours a day or 72 hours a week. One shift should not exceed 6 hours.o For any death or disability due to work, compensation will be paid as per the Act.o All provisions in the Act are applicable for women, children and bonded labor.

NOTIFICATION DATE16 MAY, 2021 VALID FOR A PERIOD OF 6 MONTHS.

As on 2 May, 2020, Uttar Pradesh has a total Liquid Medical Oxygen (LMO) requirement of around 1638 Mn Tonnes (MT) per day which includes 496 MT of daily requirement for cryogenic tanks of medical colleges / hospitals, around 962 MT of daily requirement by the re- fillers and 180 MT daily requirement to meet the home isolation demand. On the supply side, the state has a total oxygen production capacity of around 408 MT and limited by the capacity to fill cylinders per day, the effective production of LMO in the State on 2nd May, 2021 was around 360 MT. In

addition, the state has a daily off-take of around 894 MT of LMO allocated by the Government of India.To tackle the demand-supply mismatch, the policy will include all kinds of investments of INR 50 Crore (USD 6.9 Mn) and above in new, expansion, diversification for all kinds of oxygen manufacturing. It also covers manufacturing of zeolite, oxygen cylinder, oxygen concentrator and all kind of allied devices, cryogenic tankers, iso-tankers, storage facilities and transport facilities manufacturer.

23. THE UTTAR PRADESH TEMPORARYEXEMPTION FROM CERTAIN LABORLAWS ORDINANCE, 2020

Key Policy Highlightso 15% capital subsidy in Bundelkhand & Poorvanchal region, at the rate of 20% in Madhyanchal region and at the rate of 15% in Paschimanchal region.o 100% stamp duty exemption in Bundelkhand & Poorvanchal region, at the rate of 75% in Madhyanchal region and at the rate of 50% in Paschimanchal region.

22. UTTAR PRADESH OXYGENPRODUCTION PROMOTION POLICY 2021

37

Under the National Skill Development Policy, U.P. Skill Development Mission was established in 2013 with an aim to skill 4 Mn youth. o Objectives • To train all eligible youth in the 14-35 age group in the trades of their preference, • To provide facilities for acquisition and upgradation of skills of the unskilled and semi-skilled workforce, • Enabling provision for the vulnerable section e.g. women, PwD and minorities. 30% targets are

earmarked for women; 20% for minorities, provide training in NSQF (National Skills Qualifications Framework) compliant courses only.o 986 Training Partners with 3962 - training centers providing 718 courses across 34 sectors o 11,74,395 enrolledo 9,30,132 trainedo 3,39,894 placedo 22,396 under training

The policy supersedes all the clauses pertain-ing to startup section of previous policies i.e., UP IT & Startup Policy 2016 and UP IT & Startup Policy 2017. The goal of the policy is to be among the top 3 states in “States’ Startup Ranking” conducted by GoI, estab-

lish/support 100 incubators, minimum 1 in each district of the state, 3 state of the art Center of Excellence (CoEs), India’s largest incubator in Lucknow and create an ecosys-tem for at least 10,000 startups in the state among others.

Key Policy Highlights

24. UTTAR PRADESH SKILLDEVELOPMENT MISSION (UPSDM)

25. UTTAR PRADESH STARTUPPOLICY, 2020

o Capital grant up to 50% reimbursement of the eligible amount subject to maximum limit of INR 1 Crore (USD 138,889) for incubators.o Financial support to cover operational expenditure up to INR 3 Mn (USD 41,667) per year for five years or until self-sustainable whichever is earlier for the incubators. o State level annual incubator rankings shall be introduced as per the KPI framework approved by the PMIC. Top 3 performers in the ranking will be awarded amount of INR 300,000 (USD 4,167), 200,000 (USD 2,778) and 100,000 (USD 1,389) per year to the winner, first runner up and the second runner up respectivelyo Grant-in-aid (covering capital and operational expenditure) up to INR 10 crore (USD 13,889) to CoE during span of five years from the date of establishment.o Incentives for Start-Ups:o Sustenance allowance of INR 15,000 (USD 208) per month per startup for a period of one-year up to 10 startups per incubator per year at the idea stage.o Seed capital up to INR 500,000 (USD 6,944) per startup as marketing assistance up to ten startups per incubator per year to launch the Minimum Viable Product (MVP) in the marketo Patent filling reimbursement of INR 200,000 (USD 2,778) for indian patents and INR 10 lakhs (USD 13,889) for international patents

UTTAR PRADESH: NIVESHAK MITRA (INVESTOR FRIENDLY) POLICY COMPENDIUM 38

ACHIEVEMENTS

This scheme, launched on 24 January, 2021 provides free coaching to students from Below Poverty Line (BPL) families for all kinds of competitive exams like CDS, UPSC, JEE, NEET, TET, NDA, etc. trained by principals of Sainik schools, senior IAS, IPS, and PCS Officers among others. The free-of-cost coaching institutes since its inception on 16

February, 2021 has seen about five lakh students from different competitive back-grounds already availing the benefits of the Abhyudaya Scheme. More than 950,000 aspiring students have been registered for Abhyudaya Scheme with about 10 Mn hits on its website.

27. UP MUKHYAMANTRIABHYUDAYA YOJANA 2021

It is designed to reorient the Stamps & Registration Department towards 100 per cent automation in the registration process and speedy delivery of registered documents to the citizens. o More than 10 Mn documents has been registered from 2018 to 2020.oMore than INR 43,653 Crore (USD 6 Bn) r

evenue has been generated from 2018 to 2020.o More than 2.1 Mn documents and INR 12,525 Crore (USD 1.7 Bn) revenue has been generat-ed in current financial year.o Running successfully in all 364 SRO offices of UP.

28 PROPERTY EVALUATION &REGISTRATION APPLICATION (PRERNA)

o Uttar Pradesh has witnessed an exponential rise in startups with more than 3500 startups registering in the state in last three and a half years, registering a massive increase of 1700 per cent from just 200 in 2017, providing employment to 22,000 people so far. o Under the start-up policy, so far 16 incubators have been made functional across the state. Currently, more than 3,300 UP-based start-ups are registered under Startup India programme with a presence in more than 60 districts of the state.

26. GIS LAND MAPPINGThe India Industrial Land Bank (IILB) is a GIS-based portal - a one-stop repository of all industrial infrastructure-related information – connectivity, infra, natural resources and terrain, plot-level information on vacant plots, line of activity, and contact details. Currently, the IILB has approximately 4,000 industrial parks mapped across an area of 550,000 Hectares (H) of land, serving as a decision support system for investors scouting for land remotely. o UP has mapped 3792.64 hectares of available land out of which o 1968.51 H for mixed sectoro 1421.53 H for defence & aerospace manufacturing

o 311.47 H for medical deviceso 66.79 H for food processingo 24.11 H for leather &o 0.24 H for metals

Industrial Parks and GISbased Land Bankso Uttar Pradesh State Industrial Development Authority (UPSIDA)o Greater Noida Industrial Development Authority (GNIDA)o Yamuna Expressway Industrial Development Authority (YEIDA)o New Okhla Industrial Development Authority (NOIDA)

* based on change in net resilience since March 2018 to March 2020

39

The Transformation of Aspirational Districts Program aims to expeditiously transform 117 districts that were identified from across 28 states, in a transparent manner. Central to the programme are – Convergence (of Central & State Schemes), Collaboration (of Central & State level ‘Prabhari’ Officers & District Collectors), and Competition among districts across 49 key performance

indicators: i. Health and Nutrition (30%)ii. Education (30%) iii. Agriculture and Water Resources (20%)iv. Financial inclusion and skill development (10%)v. Basic Infrastructure including access to road, potable water, rural electrification and individual household toilets. (10%)

31. ASPIRATIONAL DISTRICTS OF UP

It is an integrated system for grievance redressal, to achieve the goal of good governance using latest technology involving all stakeholders. o So far, total registrations have been 2,77,75,998, out of which 2,73,78,011 have been disposed. Total Feedback: 1,31,72,910, out of

which 1,28,76,803 has been redressed. o Intensive monitoring leading to overall pendency of less than four per cent. o Jansunwai App for Citizens have 1 Mn+ downloads with rating of 3.85 and app for officers have over 100,000 downloads with rating of 4.18.

29. JANSUNWAI (IGRS)

The objective of this portal is to provide a one stop solution for all employment related issues in UP. It facilitates all types of job seekers (unskilled / semi-skilled / skilled / degree holders / highly educated etc.) and all types of job providers (private sector industries / service sector / private individu-als / governments) in the match making of suitable employers with suitable employees and also helps in career progression of all

registered workforce. o Around 3.6 Mn white collar job seekers, 3.7 Mn blue collar workers including migrant laborers and more than 19,316 employers are registered on the portal.o Around 270,000 jobs through flagship scheme ‘Rojgaar Mela’ in the last two financial years and around 400,000 jobs through Sewamitra module during COVID-19 pandemic were facilitated.

30. ROJGAAR SANGAM(INTEGRATED EMPLOYMENT PORTAL)

Bahraich

Chandauli

Balrampur

Chitrakoot

Siddharthnagar

Shrawasti

Sonbhadra

Fatehpur

62

70

79

98

99

107

111

112

40

104

97

94

102

101

108

111

22

4

22

22

16

22

4

16

63

18

81

77

107

93

101

110

6

46

4

112

111

109

110

1

93

6

19

83

1

78

77

88

81

2

19

25

39

26

4

7

Delta Rank June – 2021 out of 112

Delta RankOverall

District Health &Nutrition

EducationAgricultureand WaterResources

Financialinclusionand skill

development

Basic Infra-structure

UNDP Rank*

UTTAR PRADESH: NIVESHAK MITRA (INVESTOR FRIENDLY) POLICY COMPENDIUM 40

The Scheme compliments the ‘U.P. Industrial Investment and Employment Promotion Policy-2017’ to encourage setting up of industrial parks in the state. Private industrial park means an industrial estate/ park of more than 20 acres in Bundelkhand & Poorvanchal; 30 acres in Madhyanchal and

Pashchimanchal1; and more than 50 acres in case of Agro Parks in Bundelkhand, Poorvanchal and Madhyanchal, which is developed according to the criteria stipulated by U.P. State Industrial Development Authority (UPSIDA).

32. PRIVATE INDUSTRIAL PARKPROMOTION SCHEME

o Interest subsidy reimbursement for industrial parks/estates and agro parks developed by private sector • 50% of annual interest on the loan taken to buy land for 7 years • 60% of annual interest on the loan taken for building infrastructure for 7 years • 60% of annual interest on the loan taken for building hostel/dormitory housing for workers for 7 yearso 100% exemption/reimbursement to developer and 50% exemption to individual buyers (first) on stamp duty

Invest India has prepared this work based on the discussions with various stakeholders. The information provided does not purport to be all-inclusive or necessarily to contain all the information that any third party would need to take any sort of decision making.The inferences and analysis made by Invest India in this report are based on information collated through primary research, secondary research, discussions with client personnel and key stakeholders and our knowledge about the program and its objectives.This work product is for information purposes only. While due care has been taken during the compilation of this work product to ensure that the information is accurate to the best of Invest India’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.All rights reserved. Invest India neither recommend nor endorse any specific products or services that may have been mentioned in this work product and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this work product. Invest India shall not be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this work product.

• Fixed Conversion Rate: 1 USD = 72 INR• All data mentioned are taken from state government websites and their agencies. • Sources for news articles are either hyperlinked or footnoted.• Information w.r.t to Policy have been taken from the English translated version of the original Hindi Policy Report. Henceforth, any discrepancy between the English and the Hindi versions, the latter shall be final and binding.• Amendments are not included.

NOTIFICATION DATE13TH JULY, 2017 EFFECTIVE FOR 5 YEARS

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