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The Uttar Pradesh government has cleared a new investment policy aimed at providing a fillip to industries, especially in the backward eastern UP and Bundelkhand regions.
The policy is crucial for the revival of the state’s economy following the headwinds created by the COVID-19 pandemic.
UP’s Industrial Development Minister Satish Mahana said here that the new policy would not only boost existing and new industrial projects but also had the propensity to position UP favourably before prospective global investors in the process of shifting their manufacturing bases from China following the outbreak of the COVID-19 pandemic and the ongoing US-China  stand-off over trade .
he state cabinet cleared the new UP Investment Policy on Monday evening by circulation. It promises to reimburse state goods and services tax (SGST) by 200-300 per cent of the capital investment, subject to differential ceiling depending upon the geography, made by the industries in the Purvanchal (eastern UP), Bundelkhand regions and Madhyanchal (central UP) region..
In Bundelkhand, 70 per cent of the net SGST reimbursement would be applicable for 15 years, subject to 300 per cent of the capital investment.  Similarly, 70 per cent of the SGST would be reimbursed to the investor, subject to a ceiling of 200 per cent of the capital investment made in Madhyanchal during the policy period.
Currently, the industrial units get 70 per cent SGST reimbursement subject to a ceiling of 10 years only, which has now been extended to 15 years, Mahana said. 
“There was a general demand from industry for providing added incentives to overcome the current challenges, which we have provided by way of the new investment policy,” the minister said here.
However, the mega and super mega industrial units applying for benefit under the new policy would be expected to achieve commercial production within 30 months and 42 months respectively of the issuance of the notification of the policy.
Following lockdown, nearly 38 lakh migrant labourers and workers have returned to UP from other states, especially to eastern and central UP districts. The new policy is aimed at accelerating industrialisation in these regions so that the bulk of the migrant workforce can be absorbed in gainful employment locally.
To woo big ticket investments, especially from global corporations exiting China, the UP government had recently eased norms for the allotment of industrial land. It was done to fast track land allotment by fixing timeline of 15 days for the mega, mega plus and super mega category of industrial investments.
The new land allotment norms cover all the big industrial enclaves including Noida, Greater Noida, and Yamuna Expressway Industrial Development Authority. The state is confident of providing further impetus to the ‘ease of doing business’ quotient in UP by streamlining the process and imparting transparency to the land management by ensuring a time-bound allotment system in the industrial development authorities.