In an effort to increase high-end manufacturing and create a significant number of jobs, the Uttar Pradesh Cabinet on Tuesday authorized incentives to draw in semiconductor businesses ready to spend Rs 3,000 crore or more in the state.
UP Cabinet Approves Semiconductor Incentives
Finance Minister Suresh Kumar Khanna briefed media after the Cabinet meeting presided over by Chief Minister Yogi Adityanath, stating that 14 recommendations were submitted to the Council of Ministers, of which 13 were approved and one was postponed. According to Khanna, the state’s semiconductor strategy, which went into effect in January 2024, calls for individual incentives for businesses that make significant investments.
These include ten years of GST exemptions, interest subsidies, staff cost reimbursement, and ten years of electricity pricing subsidies of up to Rs 2 per unit. He stated that professionals in Uttar Pradesh will get a 100% refund of their EPF payments, with a monthly ceiling of Rs 2,000, in addition to water bill reductions.
Attracting Global Semiconductor Companies
Khanna said, “The aim is to recruit significant global companies in the semiconductor sector and establish Uttar Pradesh as a desirable investment location,” pointing out that the US, Europe, Japan, and Taiwan presently dominate the industry.
Multinational corporations are becoming more interested in the state, according to Industrial Development Minister Nand Gopal Gupta, and SOPs for Global Capability Centers (GCCs) have also been authorized.
💡 Semiconductor Investment Highlights
- Total Investment: Rs 3,000 crore+
- GST Exemption: 10 years
- Electricity Subsidy: Up to Rs 2 per unit for 10 years
- Staff Incentives: EPF 100% refund, monthly cap Rs 2,000
- Water Bill Reductions: For professionals & industries
- Global Focus: US, Europe, Japan & Taiwan companies targeted
Investments and Job Creation
According to him, 21 businesses have already begun making investments for the current fiscal year, which will create a sizable number of direct and indirect jobs. The Cabinet extended a 2022 ruling that limited stamp duty on family property transactions to Rs 5,000, according to Stamp and Revenue Minister Ravindra Jaiswal.
When property is given within the family, the facility—which was previously restricted to residential and agricultural holdings—will now also apply to commercial properties in both rural and urban locations.
Healthcare Infrastructure Development
Additionally, Minister Khanna said that the cabinet authorized the construction of a 500-bed multi-super specialty hospital in Varanasi to replace the Shiv Prakash Gupta divisional district hospital.
He said that the 500 multi-super specialty hospital would take four years to construct and would cost Rs 315 crore. According to Khanna, the state will cover the remaining 60% of the project’s cost.
🏥 Varanasi Multi-Super Specialty Hospital
- Capacity: 500 beds
- Project Cost: Rs 315 crore
- Construction Time: 4 years
- State Funding: 60% of total cost
- Location: Varanasi
- Purpose: Replace Shiv Prakash Gupta divisional district hospital
