To give a boost to the semiconductor industry in the state, the Yogi Adityanath government has implemented a Semiconductor Policy in Uttar Pradesh.
Under this policy, the semiconductor industry in Uttar Pradesh will be classified as an essential service provider under the Essential Services Maintenance Act (ESMA). The ESMA was enacted to ensure uninterrupted delivery of crucial services, the disruption of which would adversely impact the daily lives of people.
Under the policy, entrepreneurs establishing semiconductor units in UP will not only benefit from financial incentives but also receive non-financial support from the state government. This move marks a substantial step by the Yogi government for the success of the semiconductor sector.
Furthermore, industrial authorities will ensure continuous access to adequate water and establish sewage treatment plant (STP) disposal facilities. Along with this, the unit will be allowed to obtain electricity through ‘open access’. Not only this, the unit will also be provided power banking for renewable green energy.
This will be governed by the directives of the UP Electricity Regulatory Commission (UPERC). The government will ensure sufficient redundancy in the power grid so that reliable electricity supply can be provided for uninterrupted operation of FAB projects.
Non-disturbance provisions will also be applied for the encouragement of units. Under this, semiconductor units will be provided protection to give them a conducive environment for their hassle-free operations. Some immunity has also been given to the units to provide assured business continuity.
For this, approval from the board of directors of the authority will be a prerequisite for cancelling any lease agreement by a semiconductor unit in case of violation of any norms or by-laws after completing the investment by the developer and obtaining completion from the authority concerned as well as payment of full lease rent.
Semiconductor units will be permitted to operate 24x7 and employ women in three shifts, with specific conditions in place. According to these conditions, units ensuring the safety of female employees will be granted permission for such operations.
Additionally, semiconductor units are exempted from inspection under several Acts and the rules framed under it, except for inspections arising out of specific complaints. These units are permitted to file self-certification certificates in prescribed formats. These include the Factories Act, Maternity Benefit Act, Shops and Establishments Act, Contract Labour (Regulation and Abolition) Act, Payment of Wages Act, Minimum Wage Act and Employment Exchanges (Compulsory Notification of Vacancies) Act.
