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The Yamuna Authority is set to unveil an industrial township spanning 500 acres in sectors 10 and 32 along the Yamuna Expressway, with the goal of wooing Japanese companies specializing in electronics, chips, semiconductors, and AI sectors. The state cabinet recently approved a new FDI policy, offering exemptions in land costs, stamp duties, and other concessions to encourage more companies to establish factories in the region.
Notably, the proposed township aims to cater to Japanese nationals, providing essential amenities such as schools, hospitals, and more, effectively functioning as a self-sustaining community. The overarching aim is to create a city that offers all necessary facilities, ensuring that Japanese citizens feel at home while preserving their cultural identity.
The provision of these comprehensive facilities is expected to enhance the appeal of the region to potential investors and residents. Representatives from various Japanese companies have already visited the area, conducting site assessments and soil tests. Arun Vir Singh, the CEO of YEIDA, noted that prior discussions and MoUs were signed with these companies during the UP Global Investors Summit earlier in the year. The recent approval of the FDI policy is anticipated to streamline the establishment of the township.
Currently, the state only accounts for 0.2% of the total FDI in the country. The launch of this initiative is expected to significantly boost that percentage, and work on developing the township to attract FDI is already underway.
To be eligible for FDI benefits, companies must invest a minimum of Rs 100 crore. Such companies will enjoy benefits like capital investment subsidies and a 10-year exemption from state GST payments. Additionally, the government will provide Rs 10 crore for worker accommodations, disbursed in seven equal instalments. There will be a 100% exemption in electricity duty for five years, along with relief on electricity bills.
The government's focus during the formulation of this FDI policy was on employment and skill training. It plans to allocate Rs 5,000 per person per month to train 500 individuals over five years, contributing to the development of a skilled workforce.
The industrial township is planned to allow for multiple land uses, encompassing industrial, residential, commercial, and institutional spaces, facilitating the construction of houses, hotels, malls, offices, and more. YEIDA is in the process of determining the allocation of land percentages for these various purposes before officially launching the scheme.
Furthermore, the Authority has plans to launch another scheme for large industrial plots in Sector 32, where companies, including Japanese ones, can establish electronics units. This scheme is slated to commence after November 15, further bolstering investment opportunities in the region.
In conclusion, the new FDI policy, offering incentives and exemptions, is set to stimulate investments in the region, potentially boosting Uttar Pradesh's share of FDI. The comprehensive facilities provided will likely enhance the appeal to potential investors. The government's focus on employment and skill training reinforces its commitment to this initiative's success.
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