The Uttar Pradesh government, with the aim to fight the COVID-19 induced headwinds, has decided to hold a virtual conclave for industrialists and investors for rebooting the economy.
Ever since the coronavirus pandemic, the state government has been vigorously pursuing the investors to invest in UP against the backdrop of multinational companies mulling to shift manufacturing bases out of China
In August, the state cabinet had cleared its new investment policy to give further impetus to industries, particularly in the backward eastern UP and Bundelkhand regions. Besides, the state senior ministers and officials have also been holding virtual parleys with business delegations, companies and government representatives of different countries, including the US, South Korea, Japan, Thailand, Germany and others.
Presiding over a meeting here on Tuesday, Chief Minister Yogi Adityanath directed officials for time bound resolution of the grievances of industrialists, and said he would virtually interact with investors under the aegis of the state industry interface, Udyog Bandhu.
The chief minister underlined that he would hold virtual discussions with all the three categories of investors, including those who have already invested in UP, apart from those who are in the process of investing or are looking to invest in UP.
He instructed nodal officers to accelerate the entire gamut of the economic value chain in the state. The chief minister suggested that the huge untapped potential in the dairy sector could be realised if more dairy cooperative societies were created and energised in UP.
Following lockdown, nearly 38 lakh migrant labourers and workers have returned to the state from other states, especially to the eastern and central UP districts. The new policy is aimed at accelerating industrialisation in these regions so that the bulk of the migrant workforce could be absorbed in gainful employment locally.
Earlier, UP’s Industrial Development Minister Satish Mahana had observed that the new policy would not only boost industrial projects but also position UP favourably before the global investors. The new policy promises to reimburse state goods and services tax (SGST) by 200-300 per cent of the capital investment, subject to differential ceilings for the industries in the Purvanchal (eastern UP), Bundelkhand regions and Madhyanchal (Central UP) regions.
In Bundelkhand, 70 per cent of net state goods and services tax (SGST) reimbursement would be applicable for 15 years subject to 300 per cent of capital investment. Similarly, 70 per cent of SGST would be reimbursed to investors, subject to a ceiling of 200 per cent of capital investment made in Madhyanchal region during the policy period.
However, the mega and super mega industrial units applying for benefits under the new policy would be expected to achieve commercial production within 30 months and 42 months respectively of the issuance of the notification of the policy.