The Uttar Pradesh government under the dynamic leadership of Chief Minister Yogi Adityanath had put in massive efforts on several fronts to make the UP Investors’ Summit the huge success it turned out to be. A lot of planning, including organising roadshows across several cities like Delhi, Mumbai, Bengaluru and Hyderabad, went into making the investors’ meet a roaring success.
The state government organised several important road shows and went ahead with meeting and interacting with leading industrialists in the country and even those from outside the country. Their suggestions and views were sought on how to create an investor-friendly environment in the state and the success of these road shows, among many other factors, paved the way for the kind of huge success the investors’ meet has been.
The state machinery made the relevant changes needed to woo investors and took several steps to make contact with them. State officials also gave a patient ear to businessmen and investors, taking note of their suggestions, including issues like single window clearance systems for projects and incentives like cheaper power for industry and commercial establishments and start-ups. State government officials made concerted efforts to meet and interact with the captains of industry.
Chief Minister Adityanath had personally called on various entrepreneurs in different parts of the country. State government officials had exceeded the target for MoUs which they were assigned ahead of the investors’ meet. During the several road shows, investment proposals of about Rs 2 lakh crore were received. Various industrial houses pushed in estimated proposals worth Rs 27,000 crore during the road show in Delhi, Rs 6,000 crore proposals during the road show in Bengaluru, Rs 11,500 crore in the road show in Hyderabad, Rs 1.25 lakh crore in the road show in Mumbai and Rs 35,000 crore during the Kolkata road show. As a result of the Chief Minister’s relentless efforts, entrepreneurs from many countries confirmed their participation in the summit.
However, in the lead-up to the summit, successful road shows would not have been able to turn the meet into a big success if the Yogi Adityanath government had not put in place enabling and good policies across several sectors. Some of the enabling policies across sectors are detailed below.
PRO-INDUSTRY POLICIES
Chief Minister Yogi Adityanath had embarked on preparing the outline for pro-industry policies as soon as he was sworn in. The Industrial Investment and Employment Promotion Policy, Civil Aviation Promotion Policy, Electronics Manufacturing Policy, IT and Start-Up Policy, Solar Energy Policy, MSME and Export Promotion Policy, Handloom and Textile Industry Policy have already been formulated in 2017. Meeting of Udyog Bandhu has been made mandatory on the first Monday of every month. Right from the word go, Chief Minister Adityanath embarked on setting things right within a few months of taking charge and creating an environment in the state that would lead to investments, which, in turn, would lead to increased production, increased services, and more jobs to ultimately create an atmosphere of happiness in the state.
Entrepreneurs’ past experience related to investments in the state had been sought, and is a work in progress. Based on the ongoing feedback, the state government has already removed many of the bottlenecks and drawbacks. In fact, the Chief Minister has recently instructed officials to resolve all the problems of entrepreneurs. The state government is focused on creating the industrial backbone of the state and wooing investors to come to it on the pattern of the Gujarat model.
DYNAMIC NEW INDUSTRIAL POLICY
The Yogi Adityanath government has embarked on a new industrial policy that lays out a roadmap to help create land banks, promote country-specific industrial parks to attract FDI, and help in setting up private industrial parks around the Lucknow-Kanpur, Kanpur-Allahabad and Varanasi-Allahabad zones. The bold new industrial policy announced for investors has several fringe benefits, ranging from cheap electricity and monetary incentives to building film cities. The aim is to get investors to set up shops, factories and industrial hubs in the state so that the youth of the state can get jobs.
A massive ground has been covered including information technology, ITeS, electronics manufacturing, agro and food processing, dairy, green energy, handloom, textile and tourism, including religious tourism.
For investors, there will be stamp duty exemption, capital and infrastructure interest subsidy, employees’ provident fund reimbursement and electricity duty exemption, to bring in investments. To provide proper connectivity, the policy stresses on linking air, rail and road networks in the state—from a new airport to new metro rail services, airports and a new road corridor connecting Mathura, Kashi, Jhansi and Gorakhpur on the lines of the Lucknow-Agra Expressway and the upcoming Poorvanchal Expressway.
For boosting investment in Greater Noida, the green light has been given for an international airport at Jewar where the Expressway links the area to Noida and Delhi—something that has been pending for a long time.
IDENTIFYING LAND FOR INDUSTRIES
In pursuance of his industry-friendly policies, Chief Minister Yogi Adityanath has instructed that land for industries be earmarked in every district. Major industrial development authorities of the UP government have already identified 15,000 acres of land for investment and industrial development in the state. Directives have been issued to resolve investors’ issues within 15 days, through a single window portal. The government has also planned to attract investments for Eastern UP and Bundelkhand with a different strategy. Since land bank is necessary for setting up of industries and capital investment, all Industrial Development Authorities have been asked to take action in this direction.
SINGLE WINDOW SYSTEM
Uttar Pradesh has introduced the Single Window System to start an industry or business. Under the scheme, investors have to make on-line applications. Investors will be informed about all required information and timelines for each required document at one place. The new system will easily diagnose all problems and all paper work would be completed at one place. This shall ensure that entrepreneurs are not made to visit government offices time and again.
POWER SECTOR INVESTMENTS
The state government has simplified the process for power connection to industries. Now, an applicant may gather all information regarding a connection online. The Chief Minister has directed the Energy department to adopt a comfortable and easy attitude towards investors and take care of their requirements. Following this, the department has simplified the process of power connection to industries and the number of documents required for new electricity connections has also been reduced.
CREATING JOBS AND IT PARKS
The state government has embarked upon a new and bold policy to create jobs and make IT parks in several cities, apart from Noida and Greater Noida. IT parks are being established at Agra, Meerut, Gorakhpur, Kanpur, Lucknow, Varanasi and Bareilly. Efforts are on to develop and promote an attractive business ecosystem in UP by offering congenial, business friendly and progressive reforms, initiatives and unique value propositions. To promote human development and infrastructure development by means of IT cities, IT parks, and IT-BPM units, a state-of-the-art IT City has been built over 100 acres of land at Lucknow. The project entails an envisaged investment worth Rs 1,500 crore and aims to provide employment to 75,000 people. It is based on the “Walk to Work” model. Almost 60% of the land has been earmarked for core area activities and 40% of the land has been designated for non-core activities. IT parks are being established at Agra, Meerut, Gorakhpur, Kanpur, Lucknow, Varanasi, Bareilly and other places to encourage employment avenues in Tier-II and Tier-III cities.
INCENTIVES FOR START-UPS
To promote start-ups, the Uttar Pradesh government has announced several incentives. Start-ups are entitled to work across all sectors in the state, including agriculture, health, and education, and they should be supported by technology. The start-ups fulfilling certain conditions and incubated in UP-based Incubators/ Accelerators/Center of Excellence (CoEs) shall be eligible for several incentives at various stages. At the idea Stage: The UP government shall give them a sustenance allowance of Rs 15,000 per month for a period of one year at the idea stage. At the pilot stage: Start-ups shall be provided marketing /commercialisation assistance of up to Rs 10 lakh to launch its prototype product /services in the market at the pilot stage. Patent Filing Cost: The cost of filing and prosecution of patent application will be reimbursed to the incubated start-up companies subject to a limit of Rs 2 lakh per Indian patent awarded and Rs 10 lakh per foreign awarded patents. The recommendation for start-ups to receive the above incentives shall be forwarded by the Incubator/Accelerator/CoE in which the start-up is being incubated in Uttar Pradesh. Non-Fiscal Incentives: Start-ups and incubators will be permitted to file self-certifications, in the prescribed formats, under the some Acts and rules framed (may be amended from time to time), barring inspections arising out of specific complaints. There are many other incentives for start-ups as well.
‘ONE DISTRICT-ONE PRODUCT’ PLAN
The Uttar Pradesh government has come up with a new employment generation scheme known as the “One District-One Product” scheme. This, according to officials, will provide employment to 25 lakh persons across the state. The state government will provide Rs 25,000 to local craftsmen and entrepreneurs in the next five years. The “One District-One Product” (Ek Zila-Ek Utpadan) scheme is expected to raise the GDP of the state up to 2%. The scheme will be implemented with the collaboration of several industries working in synergy in the districts and various states. Furthermore, each district will be assigned a product (like locks and hardware, bathroom fittings, leather products, glass bangles, power looms, plastic doors, dairy products etc) under the scheme. The primary objective of the scheme is to focus on a particular product and raise its quality to compete in the international market.
The state is preparing for a facelift and once this policy takes off, it will see economic activity gaining momentum in the designated districts. The state government will now embark on an awareness raising campaign.
KHADI AND GRAMUDYOG POLICY
The UP Cabinet has implemented the state’s first Khadi and Village Industry Policy 2018. This policy has been made with an to create one lakh jobs in the next five years for the youth and farmers of the state. The policy is based on the value-chain mechanism, which will eventually help the states’s agro-industrial units sell their products with the help of the corporate sector by estabilishing mega-marts in various districts of the state.