Fiscal support to Infrastructure

• Under Infrastructure interest subsidy scheme, if industrial units take loan for developing infrastructure facilities for self-use, such as- road, sewer, water drainage, power line etc., then they will get reimbursement at the rate of 5 per cent on interest rate of loan taken for this purpose, maximum upto Rs. 1 crore for a period of 5 years
• Developer of industrial area or industrial estate in private sector will be provided 25% reimbursement from stamp duty paid, subject to the condition that the industrial area or industrial estate has been developed and at least 50% land has been sold within three years from the date of purchase of land.
• Exemption from land transfer fee, sub-divisional charges, and levy charges to such manufacturing units that make available their additional land for industrial purpose after 5 years to any other company or agency in which they have at least 51% equity
• If a parent company transfers land to its subsidiary, in which the parent company has minimum 51% shareholding, then reimbursement on stamp duty on land transfer will be admissible to the subsidiary company provided the commercial production has been started by the subsidiary company within three years.

Note: 'Unit undertaking expansion' means a unit, which makes additional capital investment in land, building, plant, machinery, spare parts and capital goods, equal to minimum 25% of investment under aforementioned heads immediately prior to expansion and where installed capacity is enhanced by at least 25% of the capacity prior to expansion.

Fiscal incentives

• 100% exemption on Stamp Duty on purchase, lease or acquisition of land by industrial units proposed to be set up in Eastern U.P., Central U.P. and Bundelkhand region
• 100% exemption on stamp duty to new IT, Bio-tech, BPO, Food processing, Food park, Alternative energy resources
• 100% exemption on stamp duty to private sector infrastructure development excluding PPP projects
• 75% exemption on stamp duty to other new units on Government land & 50% exemption on stamp duty on private land
• In case of attachment of assets of a closed unit by UPFC, PICUP or bank, stamp duty shall be payable on sale price fixed by competent authority instead of circle rate
• Facility of input tax refund or set-off will be allowed to manufacturers who export outside India by sale to export houses in the course of export under sub-sec.(3) of Sec. 5 of Central Sales Tax Act 1956
• Exemption from Electricity Duty for 10 years to new industrial units and 15 years to Pioneer units and to captive power generation for self consumption by unit

Investment Promotion Scheme

• Eligibility criteria to avail incentives has been brought down from Rs. 10 crore to Rs. 5 crore for new industrial units set up in Poorvanchal, Madhyanchal, Bundelkhand and all food processing units, live stock based units & IT units, while it has been reduced to Rs. 12.5 crore from Rs. 25 crore for the rest of State
• Interest-free loan equivalent to VAT and Central Sales Tax paid by industrial units or 10 percent of the annual turnover whichever is less will be provided for a period of 10 years repayable after 7 years from the date of first disbursement

New Capital interest subsidy scheme

• New industrial units to be set up in Poorvanchal, Madhyanchal and Bundelkhand shall get reimbursement at the rate of 5 per cent on interest rate of loan taken for plant and machinery, maximum up to Rs 50 lakhs per annum for a period of 5 years.
• New Textile units to be set up in Poorvanchal, Madhyanchal and Bundelkhand, shall get reimbursement at the rate of 5 per cent on interest rate of loan taken for plant and machinery, maximum up to Rs. 100 lakhs per annum for a period of 5 years, while this facility is available in the tune of maximum up to Rs 50 lakhs per annum in the other region of the state.

Industrial quality development subsidy scheme

• Reimbursement will be provided to the industrial association, group of industrial units at the rate of 5 per cent on interest rate of loan taken for establishing testing labs, quality certification lab, tool-rooms, etc. maximum upto Rs. 1 crore for a period of 5 years

EPF reimbursement scheme

• To generate new employment opportunities, this scheme includes provision of reimbursement of 50 per cent of EPF contribution for their workers for a period of 3 years by new units after 3 years from the date of establishment of the units, if the new units give employment to 100 or more unskilled workers.

Special facilities for Mega Projects

• Mega projects with the investment more than Rs. 500 crores will be provided with special incentives on case-to-case basis and priority shall be given for development of infrastructure facility.