Semiconductor units to attract major subsidy

Uttar Pradesh govt has announced massive subsidies as well as exemptions for investors on setting up semiconductor units in Uttar Pradesh, under the UP Semiconductor Policy 2024.

The investors will get significant subsidies on capital, interest and land along with exemptions and relief from stamp duty, registration fees, and electricity duty in establishing semiconductor units, which are considered the backbone of electronics goods manufacturing in the state under the new policy.

The state government will also assist companies setting up semiconductor units here in skills and training, in addition to establishing a research and development centre along with the centre of excellence.

The much-anticipated UP’s Semiconductor Policy is dubbed as a major initiative geared towards making India the third economic power in the world, said UP minister of Higher Education, Yogendra Upadhyay.

Notably, the subsidies include 50% on capital as approved by the Central government and an interest subsidy of 5% per annum for units investing up toINR 200 crore through loans obtained from scheduled banks/financial institutions, with a maximum repayment period of 7 years and a maximum repayment of up toINR 1 crore per unit per year.

Besides, units investing up to a maximum ofINR 7 crore can avail the interest subsidy. The investors will also get rebates on land rates.

Investors will also be totally exempted from electricity duty for 10 years.