Uttar Pradesh: Yogi govt in a fix over Chinese investments in state
Minister for Industry Satish Mahana said many Chinese companies have already started production in UP and the state govt would act only in accordance with guidelines from the Union Govt on the issue.
The Yogi Adityanath government in Uttar Pradesh is treading cautiously over the investments being made by the Chinese companies in the state, following the face-off between the two countries on the border.
Minister for Industry Satish Mahana said many Chinese companies have already started production in Uttar Pradesh and the state government would act only in accordance with the guidelines from the Union Government on the issue.
Various incentives are promised to companies that propose to make investments in the state under the provisions of Uttar Pradesh Electronics Manufacturing Policy-2017.
The Chinese companies are obviously here to take advantage of the policy and have been given subsidised land to set their units in accordance with the policy. Uttar Pradesh's development authorities, including the Greater Noida Industrial Development Authority and Yamuna Expressway Industrial Development Authority have given 25 per cent rebate while providing the land to foreign companies. These include the Chinese companies also.
The state government is committed to reimburse to the development authorities a subsidy of about Rs 200 crore given to the foreign companies.
According to official sources, a large investment of about Rs 15,000 crore to Rs 20,000 crore is being made by the Chinese companies that are setting up their units in the electronics manufacturing sector in the state. Many of these companies are already here and have made makeshift arrangements to start their production. Large incentives have been promised to them.
"We are now adopting a wait and watch policy before pushing ahead the process of investment that includes giving them a letter of comfort," said a senior official dealing with foreign investment in the electronics manufacturing sector in the state.
Major Chinese companies in the process of making investments in the state include Haier Appliances (Rs 2,800 crore), Holitech Technologies (Rs 1,700 crore), Sunwoda Electronics (Rs 1,500 crore) and Vivo (Rs 7,000 crore).
Another Chinese company, Oppo, has already made an investment of Rs 2,000 crore and proposes to make an additional investment of Rs 1,500 crore in the state.
Other incentives to be given to companies making investment as per the provisions of the electronics manufacturing policy include 100 per cent exemption on stamp duty, capital subsidy on fixed capital, five per cent per annum subsidy on interest for seven years, 100 per cent reimbursement of actual filing costs on awarded patents, 100 per cent state GST reimbursement for 10 years. Special incentives on case to case basis are also promised to companies making investment of more than Rs 200 crore with approval by the empowered committee and the state cabinet.