The Big Chip Move: UP’s New ₹3,000Cr Incentive Plan

The Uttar Pradesh Cabinet has approved a package of incentives to attract semiconductor companies committing investments of ₹3,000 crore or more in the state, in a bid to promote high-end manufacturing and large-scale job creation.

Under the state’s semiconductor policy, introduced in January 2024, incentives will be offered on a case-by-case basis. These include interest subsidies, reimbursement of employee costs, GST exemptions for up to 10 years, and a power tariff subsidy of up to ₹2 per unit for a decade. The policy also provides 100 per cent reimbursement of Employees’ Provident Fund (EPF) contributions for local professionals, capped at ₹2,000 per month, along with concessions on water charges.

Finance Minister Suresh Kumar Khanna said the initiative aims to attract leading global players and position Uttar Pradesh as a major hub for semiconductor manufacturing. He added that the state has already witnessed strong investor interest, with 21 companies making investments in the current financial year, expected to generate significant direct and indirect employment.

News by Rahul Yelligetti.