INDIAN STATES : UTTAR PRADESH

Policy Framework

Industrial and Service Sector Investment Policy 2004

Industrial and service sector investment policy aimed at creating comprehensive reforms and restructuring of the economy is creating new opportunities and opening new avenues for investment in the state.

The policy provides special incentives on infrastructure in addition to exemption from various tax and duties to the investors. The policy maintains a single window policy for speedy and hassle free procedures. A 100 per cent exemption on stamp duties for IT, ITeS, food processing sector and some of the service sector; rebate on stamp duty, land on priority, interest free loan under industrial investment promotion scheme, uninterrupted power supply and exemption from electricity duty, 50-100 per cent exemption from stamp duty on purchase of land have helped to create ideal environment for investment. Also extra incentives are being given on case-to-case basis for investment more than Rs.500 crores.

Full text of the policy (.pdf)

Information Technology Policy 2004

Objectives of the Policy

• Bringing IT to masses
  
• Accelerate the use of information technology in schools, colleges and educational institutions
  
• Spurring the Domestic demand for software, hardware and services
  
• Making Software, Electronics/IT Hardware and ITS/ITES Sectors globally competitive and thereby increasing export earnings
  
• Facilitating the industry for addressing global markets
  
• Facilitate formation of value additions for growth of the industry
  
• Help businesses realise full potential in creating wealth.

Strategy of the Policy

The strategy is to achieve economic growth through development of nationally and globally competitive industry by facilitation and providing confidence, dedication, purpose and a fertile ground in which investments would flourish.

Full text of the policy (.pdf)

Biotech Policy 2004

The state Uttar Pradesh aspires to utilize the modern tools of biotechnology and attain prosperity for farmers, generate employment in rural areas, food for all, good health and clean environment. The mission of the policy is to develop knowledge-based economy, assure benefit of biotechnology to all section of the State and promote entrepreneurship in biotechnology-based industries.

Objectives of the Policy

• Establish pre-eminent position of the State in the field of biotechnology.
  
• Create awareness about the entrepreneurial and job opportunities in the field of biotechnology.
  
• Attract biotechnology based industrial investment.
  
• Develop and conserve bio-resource for sustainable commercial use.
  
• Harness existing R&D capabilities for industrial/ commercial developments in the State and to promote corporate funding and developing such knowledge.
  
• Develop adequate institutional and related infrastructure for development, acquisition and dissemination of biotechnology through out the State.
  
• Promote research and development and to establish centers of excellence in frontier area of biotechnology.

Full text of the policy (.pdf)

Policy for Food Processing Industry 2004-09

Uttar Pradesh is one of the largest producers of farm commodities in the country and the largest producer of vegetables, wheat, maize, sugarcane, potato and milk. Some of the most delicious varieties of fruits are grown in the state. Thus there is an immense inherent potential in this sector. The state also has diverse agro climate conditions, which are conducive for a variety of crops round the year.

Despite the inherent potential, it has so far been untapped. Large quantities of vegetables and fruits are wasted as only around 2% of the production is commercially processed. Though considerable success has been achieved in evolving appropriate pre harvest practices, the issue relating to post harvest management, which includes grading, sorting, packaging, processing, transportation and marketing, are still not adequately addressed. It is believed that agriculture in the state can turn into a lucrative venture, if there is a proper linkage from end to end among various components of agri-business, i.e. from the stage of sowing to final sale and consumption, which can develop synergy and dynamic efficiency in the system.

Objectives of the Policy

The policy aims at achieving the following objectives:

• Better returns to the farmer for his produce
  
• Encourage investment and employment generation in the sector
  
• Promote value addition and quality consciousness
  
• Minimize wastage of agriculture and horticulture produce
  
• Provision of appropriate linkages between the agricultural and industrial sectors
  
• Provide a 'market' focus to the entire range of activities involved in food processing.

Strategy of the Policy

The strategy would center around identification of potential areas for value addition, keeping in view both the international and domestic market demand and
addressing issues relating to the entire value chain, right farm to the palate, for achieving the objectives outlined in the policy. Apart from evolving new and more
effective instruments for overcoming the constraints in this sector & for promoting food processing, emphasis will be on:

• "Convergence" of all fiscal and financial incentives provided by Central and State Government agencies;
  
• "Partnership" between the farmer, private sector processors, Central and State Government; and
  
• "Focus" on such issues, which are critical to the growth of this sector.

Full text of the policy (.pdf)

Power Policy 2003-09

Power to all is an integral and primary component of the developmental program of the State. To address this key developmental challenge Government of Uttar Pradesh formulated a Power Policy in 1994 and a Power Reform Policy in 1998 with the following objectives. The power policy has been drafted to attract private sector investment into power generation, transmission and distribution with a view to ensuring electricity supply to all villages in the state.

• Provide cost efficient good quality electricity to all categories of consumers for economic development and social uplift of the state.
  
• Make the energy sector commercially viable so that it ceases to be burden on the state budget; and
  
• Protect the interest of the consumers
  
• ·With the above objectives in perspective, the Government of Uttar Pradesh agreed on the following key aspects of the power sector Reform programme.
  
• Restructuring of Uttar Pradesh State Electricity Board (UPSEB) into autonomous and separately accountable entities.
  
• Creation of an independent Regulatory Body to protect consumers as well as long-term financial health of the power sector.
  
• Ultimate transfers of ownership of assets to public corporate entities over a phased time scale.
  
• Rationalization of tariff.

Full text of the policy (.pdf)

Policy for Promotion of Private Investment in the Development of Hi-Tech Townships in Uttar Pradesh

Objectives of the Policy

• Produce competitive hi-tech marketable estates with an attractive environment for high quality living, work and recreation.
  
• Encourage high technology and knowledge based industries, tourism and
  
• Provide facilities for business organisations engaged in modern technologies.
  
• Facilitate and create an enabling environment for attracting maximum private investment in housing and infrastructure development.
  
• Support and enable private investment in other sectors of the state economy.

Full text of the policy (.pdf)

SEZ Policy 2006

• SEZ Policy-2006 (Part -A: simplification of Financial Exemption/Assistance, Procedures)
• SEZ Policy-2006 (Part-B: Provision Regarding Selection of Developers, Availability of land and land use in master plan etc)

The government has announced the SEZ policy to foster industrial and economic development and create conducive environment for the development of SEZ.

Salient Features of SEZ acknowledged by the policy:

• Integrated areas with world-class infrastructure facilities will be developed through establishment through establishment of SEZ.
  
• Apart from achieving a rapid economic & industrial growth in the country and the state, new avenues for employment generation will be created by setting up of SEZs.
  
• The establishment of SEZs will boost the exports. Domestic Investments, FDI and foreign & modern technology will be attracted.
  
• Provisions for the exemption of taxes etc. for rationalization/exemption in the legal provisions related to labour, environment, electricity, etc. has been provided for in the policy.

Sugar Policy

The Government of Uttar Pradesh declared the new sugar industry promotion policy in 2004. Under its proposals, entrepreneurs are provided with a host of incentives and concessions to set up sugar mills in the state. These include exemption of entry tax on sugar, reimbursement of administrative charge and trade tax on molasses. Further, exemption from stamp duty and land registration fee, exemption and reimbursement of purchase tax on sugarcane, reimbursement of expenditure on transport of sugarcane and sugar are also provided.

Uttar Pradesh has traditionally been known as the "Sugar Bowl of India" (accounting for 40 per cent of the total production) and sugar is an important source of livelihood in the state. The new policy on sugar provides direct benefits to the farming community as it has generated rural employment, reduced income inequalities, and propelled the growth process of the state.