UP aims for 11.2% growth

Eyeing a growth rate of 11.2%, with a focus on removing regional imbalances in industrial development, the Uttar Pradesh cabinet has cleared the final draft of the Industrial and Service Sector Investment Policy 2012. Among the major provisions of the new industrial policy, the state government has cleared 100% exemption of stamp duty for industrial units in Poorvanchal, Madhyanchal and Bundelkhand. A 100% exemption in tax will also be given to infrastructure facilities like roads, power, wholesale, trans-shipment centres, warehousing, information technology and cold storages, among others.
Among other measures taken by the government to attract new industry and arrest the migration of existing units to other states, the industrial policy has created an enabling system under which mega projects will be treated on a case-to-case basis
Traditional craft clusters — lock, brass, marble and perfume industries — to be given special assistance
Sops to be offered in line with those being offered by neighbouring states
For generating employment opportunities in the state, the new industrial policy will also see the launch of a special EPF Reimbursement Scheme. Under this scheme, units that employ 100 or more labourers will be eligible for reimbursement of 50% of EPF contribution paid by the units to their workers, for a period of 3 years.
The new ISSIP 2012 will also launch the new capital interest subsidy scheme, under which new industrial units that are set up in Central, East and Bundelkhand regions will be eligible for a reimbursement of 5% on interest rate of loan taken for plant and machinery. A maximum of Rs 50 lakh will be given to entrepreneurs for a period of five years. An infrastructure-interest subsidy scheme will also provide a reimbursement of 5% on interest rate of loan taken for developing infrastructure facilities for self use—roads, sewer, drainage systems and power lines.Industrial estates being developed by private sector will also get reimbursement of 25% in stamp duty.
The overarching industrial policy, which will cover aspects of solar, IT and food processing sectors as well, also aims to improve the quality of products. For this purpose, the policy has devised a mechanism called the industrial quality development subsidy scheme, under which reimbursement will be provided at the rate of 5% on interest rate of loan taken for establishing testing labs, quality certification lab and tool-rooms. A maximum of Rs 1 crore will be paid under this scheme for a period of 5 years.
Apart from implementing the scheme of Government of India to promote Micro, Small and Medium units, the industrial policy has also made provisions to promote the MSME sector, especially the traditional crafts, in UP. Once implemented, UP government will also undertake an aggressive marketing strategy, where the policy document and the government orders pertaining to its implementation will be disseminated in other Indian states and abroad.