Incentives Under Industrial Investment Scheme Of UP

Udyog Bandhu under Uttar Pradesh has launched a scheme to provide working capital in the initial years of industries. Udyog Bandhu is an organization of the State Government of Uttar Pradesh in India, dedicated to facilitate Investment in Industrial and Service Sectors, besides solving various problems of existing & up-coming industries as well, related to different Government departments.

Objectives:

• To transform the state of Uttar Pradesh into the most preferred investment destination in India by acting as an effective investment policy driver.
• To provide world-class infrastructure and business environment within the state.
• To promote economic growth and enhance quality of life of the people of the state.

Benefits under various incentives and Eligibility:

1.Interest Free Loans:

Amount of loan shall not exceed the sum of amount of VAT and CST paid during the year subject to maximum of 10% of the annual turnover.

• Period of Loan:

1. 10 Years in case of units other than pioneer units.
2. 15 Years in case of pioneer units

• Eligibility:

• New industrial units with first date of sale on and after 11-3-2003.
• Investment in land, building, Plant, Machinery and capital goods on first date of sale is not less than-

1. Rs. 5 Crore in agro processing units
2. Rs. 10 Crore in Eastern UP and Bundelkhand
3. Rs. 25.00 Crore in units not covered in clause 1 and 2 above

• Repayment of Loan:

1. 7 Years from the date of disbursement, in case of units other than pioneer units
2. 10 Years from the date of disbursement in case of pioneer units.

2. Exemption from Stamp Duty on Transfer/Lease/Acquisition of Land

• 100% exemption:
• New micro and SSI units set up in Eastern U.P. and Bundelkhand.
• New units for development of infrastructure like setting up of industrial estates, construction of roads, bridges, over bridges, wholesale markets, transshipment centre, integrated transport and commercial centers, container depot, electric / water supply, water discharge, exhibition centers and warehouses etc.
• New units in Information/ Bio technology, BPO, Call centers and Agro Processing units.
• All projects with an investment of Rs. 750 Crore or above.
• Service sector projects-

1. Multi facility and super specialty hospitals having prescribed number of beds.
2. Technical / Information Technology training institutes with syllabus approved by the State Government and having not less than 75 trainees.
3. Medical / dental colleges /other educational institutions, multiplex cinema, shopping malls and entertainment centers with investment in building and machinery of not less than Rs. 10 Crore.

• 50% exemption: All other units not covered in above section

3. Exemption from Mandi Fee:

• Eligibility– New Food Processing Units with Investment in Plant and Machinery of Rs.10 Crore or more.
  Extent – On purchase of raw material for use in manufacture of agricultural produce.
  Period of Exemption – 5 years

4. Exemption from VAT to Manufacturer Exporter:

On turnover of direct sale to and direct purchase by manufactures exporters of raw material, processing material, consumable stores, spare parts, accessories, components, lubricants, fuel, other than patrol and diesel, and packing material for use in manufacturer of goods by him or in packing of such goods.

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