News Brief

Uttar Pradesh Unveils New Semiconductor Policy To Ignite Industry Growth In The State: Here's All About It

Nayan DwivediMar 05, 2024, 01:06 PM | Updated 01:06 PM IST
UP Chief Minister Yogi Adityanath and Prime Minister Narendra Modi.

UP Chief Minister Yogi Adityanath and Prime Minister Narendra Modi.


In a move to bolster the semiconductor sector, the Uttar Pradesh government has rolled out an ambitious subsidy and exemption programme under the newly-sanctioned UP Semiconductor Policy 2024.

Designed to incentivise investors, the policy promises a slew of benefits that exceed those offered by the central government's Modified Programme for Semiconductors and Display Fab Ecosystem.

Key highlights of the policy include a generous 5 per cent per annum interest subsidy on loans acquired from scheduled banks or financial institutions, applicable for a maximum repayment period of seven years.

This subsidy extends to investments of up to Rs 200 crore, with smaller units investing up to Rs 7 crore also eligible. Also, stamp duty and registration fees on land transactions are entirely waived.

Furthermore, the state has committed to a decade-long exemption from electricity duty for investors, alongside the provision of double power grid networks for semiconductor fabrication units.


UP Minister of Higher Education, Yogendra Upadhyay, in a press statement said the recently introduced semiconductor policy under the IT and Electronics Department would play a crucial role in making the state and the country a leader in this sector.

To foster international-level expertise within the semiconductor industry, units will also receive up to Rs 1 crore as one-time assistance for a period of up to 12 months.

Moreover, the policy includes provisions for establishing research and development (R&D) centres and centres of excellence (COEs), with substantial subsidies allocated for their setup.

R&D centres stand to receive up to Rs 10 crore in subsidies, while COEs will benefit from 50 per cent of the total project cost, capped at Rs 10 crore.

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