Making a global investment pitch, the Uttar Pradesh government has announced a Foreign Direct Investment (FDI) policy to attract Fortune 500 companies.
The FDI policy promises an array of concessions including capital subsidies, tax rebate etc to the eligible foreign companies.
Fortune 500 refers to the list of 500 of the largest companies in the United States compiled and published by business magazine Fortune every year. The companies are ranked by their annual revenues.
Earlier, UP had claimed to have netted FDI proposals worth Rs 60,000 crore in the last 5-6 years. With the new FDI policy, the state is looking to further expand its FDI basket in different sectors.
The FDI policy will supplement the state government efforts to make UP a $trillion economy by 2027.
Under the FDI policy, the state industrial development authorities will provide land at subsidised rates to the eligible projects. The policy stipulates differential capital subsidy on investment (excluding investment in land) with the capital subsidy being subject to a ceiling of Rs 100 crore per year.
The promised subsidy will be 25 percent in Gautam Buddha Nagar and Ghaziabad districts; 30 percent in Central UP and remaining Western UP districts; and 35 percent in Bundelkhand and Purvanchal (Eastern UP) regions.
Meanwhile, industry has welcomed the new FDI policy saying it would boot the socioeconomic development in UP.
While efforts to bolster FDI are being undertaken across all levels of government in UP through a series of strategic policy initiative, the FDI policy signifies a major milestone in this regard.