 "Global funds, blue chip firms on Uttar Pradesh's radar for investments")
The Uttar Pradesh government is looking to tap global funds and blue chip companies for investments in the state.
The state will launch projects worth more than Rs 6 trillion at the maiden groundbreaking ceremony (GBC) later this year.
While UP claims to have attracted foreign direct investment (FDI) proposals of Rs 60,000 crore from nearly 25 countries in the past five-six years, the state has now increased the previous amount with an exclusive FDI policy to accumulate a larger share of the global investment inflows to India.
The policy to promote FDI inflows and attract Fortune 500 firms was recently cleared by the Yogi Adityanath Cabinet. It promises concessions, including capital subsidies, and tax rebate to the eligible foreign companies taking the FDI route.
In the run-up to the UP Global Investors Summit (GIS) 2023, the state organised roadshows in leading industrialised economies across different continents such as North America, South America, Europe, Asia, and Australia.
The investor’s outreach facilitated a large number of investment proposals from foreign companies and consortiums in different sectors.
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“The private sector investment, both domestic and global, is a key to realising UP’s ambitious $trillion economy goal,” a senior UP government official said.
Under the FDI policy, the industrial development authorities in UP would provide land at subsidised rates to eligible Fortune 500 companies and FDI projects.
The policy stipulates differential capital subsidy on investment (excluding in land) to the eligible projects. However, the capital subsidy would be subject to a ceiling of Rs 100 crore a year.
The subsidy would be 25 per cent in Gautam Buddha Nagar and Ghaziabad districts; 30 per cent in central UP and remaining western UP districts; and 35 per cent in Bundelkhand, and Purvanchal (eastern UP) regions.
Meanwhile, Indo-American Chamber of Commerce Executive Council member Mukesh Singh said the FDI policy would accelerate the economic development trajectory of the state.
“Efforts to strengthen FDI are being undertaken across all levels of government in the state through a series of strategic policy initiatives and reforms. The introduction represents a significant milestone in this endeavour,” he noted.
“The policy will complement the manufacturing, exports, trading and infrastructure development roadmap for faster socioeconomic development in the state.”