UP Cabinet approves sops to attract semiconductor investments

The Uttar Pradesh Cabinet on Tuesday approved incentives to attract semiconductor companies willing to invest Rs 3,000 crore or more in the state, aiming to boost high-end manufacturing and generate large-scale employment.

Briefing reporters after the Cabinet meeting chaired by Chief Minister Yogi Adityanath, Finance Minister Suresh Kumar Khanna said 14 proposals were placed before the Council of Ministers, of which one was deferred while 13 received approval.

Khanna said the state's semiconductor policy, introduced in January 2024, envisages case-by-case incentives for companies making large investments.

These include interest subsidy, employee cost reimbursement, GST exemptions for 10 years, and power tariff subsidy of up to Rs 2 per unit for a decade.

He added that 100 per cent reimbursement of EPF contributions for Uttar Pradesh-based professionals, capped at Rs 2,000 per month, along with concessions in water charges, would also be provided.

"The objective is to attract major global players in the semiconductor sector and position Uttar Pradesh as a preferred investment destination," Khanna said, noting that the industry is currently dominated by the US, Europe, Japan and Taiwan.

Industrial Development Minister Nand Gopal Gupta said the state was witnessing growing interest from multinational companies and that SOPs for Global Capability Centres (GCCs) were also approved.

He said 21 companies have already started investments in the current financial year, which would generate significant direct and indirect employment.

Stamp and Revenue Minister Ravindra Jaiswal said the Cabinet expanded a 2022 decision that capped stamp duty at Rs 5,000 on family property transfers.

The facility, earlier limited to residential and agricultural properties, will now apply to commercial properties as well, in both rural and urban areas, when property is gifted within the family.

Minister Khanna also said that the cabinet also approved the establishment of a multi-super speciality hospital with 500 beds in Varanasi at the place of Shiv Prakash Gupta divisional district hospital.

He said the 500 multi-super speciality Hospital will require a cost of Rs 315 crore and will be completed in 4 years time.

60 per cent of the project’s cost would be borne by the Centre and the remaining by the state, Khanna said.