The Uttar Pradesh (UP) cabinet has granted approval to the state semiconductor policy. Under the policy, industrial groups investing in setting up semiconductor manufacturing units will receive a fund of Rs 800 billion from the central government, with the UP government contributing 75 per cent of the amount. The policy includes provisions for providing financial incentives to industries and a subsidy of 75 per cent on land up to 200 acres in the form of land subsidy.
As per the state government, the policy is expected to attract significant investments in the state on a large scale. The policy aims to make UP a leader in the semiconductor manufacturing sector. The government informed that 13 companies have so far expressed their intention to set up semiconductor manufacturing units in the state.
Collaborations with the industry will be done under the Chief Minister Internship Program to ensure the availability of a skilled workforce. Furthermore, arrangements for training related to semiconductor manufacturing will be made in the technical institutes of the state.
Additionally, approval was also granted to make changes in the UP Micro, Small and Medium Enterprises (MSME) Promotion Policy to exempt private MSME units and Promoting Leadership and Enterprises for Development of Growth Engine (PLEDGE) parks from conversion fees for changing the land use under development authorities from agricultural to industrial. Besides, the cabinet also gave its go-ahead to exempt the metro rail, regional rapid transit system (RRTS), and all their assets from acquisition under the UP Municipal Corporation Act.
