Introduction:
In a momentous stride towards technological self-reliance and economic growth, Uttar Pradesh Chief Minister Yogi Adityanath has officially signed the Semiconductor Policy 2024. This landmark decision makes Uttar Pradesh the fourth Indian state, after Gujarat, Odisha, and Tamil Nadu, to institute a dedicated semiconductor policy. The comprehensive five-year policy aims to attract investments and propel the state into a prominent hub for the semiconductor industry.
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Key Highlights of the Uttar Pradesh Semiconductor Policy:
The semiconductor policy unveiled by the Uttar Pradesh government is set to redefine the landscape of the state’s technological and economic development. Here are some key highlights:
1. Incentives for Investors:
- The policy offers a plethora of incentives designed to position Uttar Pradesh as an attractive destination for semiconductor manufacturing.
- Capital, non-financial, and financial incentives will be provided to all stakeholders in the semiconductor manufacturing ecosystem.
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2. Capital Subsidy:
- The state government plans to subsidize 50% of the capital subsidy provided by the central government, providing a significant boost to semiconductor manufacturing units.
3. Interest Subsidies:
- Units investing up to Rs 200 crore are set to benefit from interest subsidies, with a maximum cap of Rs 1 crore, further encouraging investments in the sector.
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4. Land Discounts:
- A 75% discount on the first 200 acres of land and a 30% discount on additional land will be provided to semiconductor manufacturing units, facilitating the establishment of production facilities.
5. Exemptions on Registration and Stamp Duty:
- The policy includes a 100% exemption on registration and stamp duty for land acquisitions, reducing financial burdens on investors.
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6. Market Projections:
- The official press release from the Uttar Pradesh government highlights the anticipated surge in demand for semiconductors, projecting a market exceeding USD 100 billion by 2025.
7. Government’s Vision:
- Acknowledging the country’s current dependency on semiconductor imports, the government aims to leverage the policy to lead the charge towards becoming a trillion-dollar economy.
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Implementation Mechanism of Uttar Pradesh Semiconductor Policy:
The IT and Electronics Department will play a pivotal role in implementing the semiconductor policy. A dedicated policy implementation unit, chaired by the additional chief secretary/principal secretary of the IT and Electronics Department, will oversee the effective execution of the policy. This reflects Uttar Pradesh’s commitment to fostering technological growth and self-reliance in the semiconductor sector.
Conclusion:
The Semiconductor Policy 2024 marks a significant milestone in Uttar Pradesh’s journey towards technological self-sufficiency. By providing a conducive environment for semiconductor manufacturing, the state is poised to attract investments, generate employment, and contribute substantially to the burgeoning semiconductor market. As Uttar Pradesh joins the league of states with dedicated semiconductor policies, this strengthens its position in the technology sector.
