UP Gov’t announces New Electronic Manufacturing Policy 2020

Uttar Pradesh state government has announced Electronic Manufacturing Policy 2020 in order to invite investment of Rs. 40,000 crores in the next five years as well as to generate four lakh direct employment in the state.

The newly launched policy will support Prime Minister Narendra Modi’s vision of achieving Zero import of electronic goods. The policy will help in making UP a global electronics hub and will also attract international investors to shift their base to India post-COVID-19.

Earlier launched Uttar Pradesh Electronics manufacturing Policy 2017 got tremendous success. It had also successfully achieved the given target of investment as well as employment generation in the third year itself.

₹40 हजार करोड़ से तीन इलेक्ट्रॉनिक्स मैन्युफैक्चरिंग क्लस्टर्स की होगी स्थापना।
बुंदेलखंड और पूर्वांचल के लिए अतिरिक्त प्रोत्साहन।

पूरी खबर पढ़ें: pic.twitter.com/1nXbxLo5NS

— CM Office, GoUP (@CMOfficeUP) August 19, 2020

Key Highlights:

• Uttar Pradesh accounts for more than 60 per cent of all the mobile phones manufactured in India.

• Yamuna Expressway, Noida, Greater Noida have also been established as one of the emerging mobile manufacturing hubs attracting Foreign Direct Investment (FDI) from many countries.

• The incentives proposed in the new policy will be applicable to all the units setting up their bases anywhere in UP.

• To address the problem of regional imbalance, investors have been provided with double the rate of land subsidy to set up the manufacturing units in Purvanchal regions and Bundelkhand.

• Investors under the new policy will be eligible for the capital subsidy of 15 per cent and additional capital subsidy of 10 per cent on the investment of more than Rs. 1000 crores.

What is UP govt’s plan with the new policy?

To accelerate the electronics system in Uttar Pradesh, the coverage of the new electronics manufacturing policy is now extended to the entire state from the current electronic manufacturing zones (EMZ).

Uttar Pradesh state government has also been encouraging the rental facilities on the ‘plug and play’ model through the public-private partnership mode in order to promote MSME units in electronic manufacturing.

Apart from government’s plan to create the world-class infrastructure in the form of COEs- Centres of Excellence to promote the innovation, research and entrepreneurship in the ESDM-Electronic System Design and Manufacturing industry, its focus will also be to establish the three Electronic Manufacturing Clusters focusing on Consumer durables, mobile manufacturing, IT hardware, Telecom, defence, medical equipment, among the others.