In its bid to promote manufacturing of electrical vehicles in Uttar Pradesh, the Yogi government has decided to provide various incentives and subsidies to the investors and will encourage those investors that carry out skill development of the employees.

Provisions have been made in the EV Manufacturing and Mobility Policy in this regard. Information about financial incentives for skill development has been provided in the manual related to the implementation of the policy.

“Skill development subsidy will be provided to companies investing in EV manufacturing in the state. Additionally, a separate financial incentive will also be provided to train the employees in a particular year,” government spokesman said here on Wednesday.

In a recent program, the chief minister had appealed to the companies investing in the state to also make efforts for skill development of the youth in order to create a skilled workforce, and had also assured of all possible help from the government in this regard.

“Notably, skill development subsidy has been mentioned in the EV policy wherein a one-time subsidy at the rate of `5000 per employee per year will be provided to a maximum of 50 employees in the form of reimbursement of stipend for all defined manufacturing projects. Under this provision, a subsidy will also be paid for training a maximum of 10 employees in a particular year,” the spokesman said.

However, it should be noted that this incentive will be applicable solely to employees who have been working in the applicant manufacturing unit for a minimum period of 12 months before joining the training program.

To be eligible for this subsidy, the training programme must be certified by either the National Skill Development Corporation, Uttar Pradesh Skill Development Mission, a Central/State University/College, or an ITI/Polytechnic institution.

All incentive benefits will be provided only after the commencement of commercial production as per the provision made in the EV policy. The aggregate of all financial incentives for manufacturing projects should not exceed 100 per cent of the fixed capital investment.

Under this policy, the principle of 'First Come, First Serve' will be implemented for projects that have received a letter of comfort from the State Government for promotion under the policy.

An MoU has been signed to facilitate significant investments in the electric vehicle manufacturing sector in the state. Both Indian and foreign companies are interested in investing in the EV manufacturing sector in UP. The biggest investment is coming from a Hong Kong based company named ‘Tauschen International Ltd’ which is a part of the Tauschen Group of Companies.

Apart from EV manufacturing, ‘Tauschen International Ltd’ has signed an MoU for an investment of 1.90 lakh crores in many other sectors. Similarly, RG Strategies Group and Cosis Group have also signed major investment agreements in the EV sector.