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IndustrialInvestmentandEmploymentPromotionPolicyofUttarPradesh2017

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Draft

Industrial

InvestmentandEmployment

PromotionPolicyofUttarPradesh

2017


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Index

1. Background

1.1 India:Arisingglobaleconomy

1.2 UttarPradesh:Apotentialeconomicgrowthengine

1.3 IndustrialInvestment&EmploymentPromotionPolicyofUttarPradesh2017:

CoreIntentions

2. Visionofthepolicyandimplementation

2.1 Mission

2.2 Strategiestoachievethevision

2.3 Implementationofthepolicy

3. EnablinginfrastructureDevelopingnewinfrastructureandupgradingexistingones

3.1 Land

3.2 PromotingIndustrialParks/estates

3.2.1 Developingnewindustrialparksandupgradingexistingones

3.2.2 PromotingPrivateIndustrialParks/Estates

3.2.3 Incentivesforprivate&governmentsectorindustrialparks/

estates

3.3 NationalInvestment&ManufacturingZones

3.4 SpecialEconomicZone

3.5 Industrial&InvestmentregionsandIntegratedManufacturingClusters(IMCs)

3.6 Connectivity

3.6.1 Roadways

3.6.2 Airways

3.6.3 Railways

3.6.4 Waterways

3.6.5 Digital

3.7 Transportationandlogistics

3.7.1 Transportation

3.7.2 Logistics

3.8 DedicatedFreightCorridors

3.8.1 WesternDedicatedFreightCorridor(WDFC)

3.8.2 EasterndedicatedFreightCorridor(EDFC)

3.9 IndustrialCorridors

3.9.1 DelhiMumbaiIndustrialCorridor(DMIC)

3.9.2 AmritsarKolkataIndustrialCorridor(AKIC)


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3.10 Power

3.11 Water&Drainage

3.12 PrivateSectorInfrastructureInvestments

4 EmploymentgenerationCreatingopportunities

5 FiscalincentivesAttractinginvestments

6 Easeofdoingbusiness-Creatingaconduciveindustrialenvironment6.1 Simplificationofprocedures

6.2 Timeboundclearances

6.3 SingleWindowClearance

6.4 EaseforCommercialactivitiesinthestate

6.5 IndustrialSecurity

6.6 Otherregulatorysimplificationenablers

6.7 StateInvestmentPromotionBoard(SIPB)

7 MakeinUPLeveragingthesuccessofMakeinIndia

8 SkilledManpowerReapingthebenefitsofdemographicdividend

9 InnovationPromotingStart-Ups9.1 RegulatorySimplificationandHandholding

9.2 FundingSupportandIncentives

9.3 IncubationSupport

10 Micro,Small&MediumEnterprisesEnsuringallroundindustrialgrowth10.1 ImprovingflowofcapitalandcreditforMSMEs

10.2 Capacitybuilding

10.3 QualityandStandards

10.4 IndustrialInfrastructureandCommonFacilityCentres

10.5 Marketing

10.6 GoodGovernance

10.7 Miscellaneous

11 SectoralapproachBenefittingfromsectorsofstrength11.1 IT/ITeSindustryandITStartUps

11.2 ElectronicsManufacturing

11.3 Agro&FoodProcessing

11.4 Dairy

11.5 New&RenewableEnergy

11.6 Handloom&TextileIndustry

11.7 Exportorientedunits

11.8 Tourism


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11.9 Film

12 Sustainable & Inclusive growth Ensuring clean & balanced distribution of economicgrowth

12.1 Sustainablegrowth

12.2 BalancedRegionalgrowth

12.3 PromotingSC/ST/WomenandDifferentlyAbledentrepreneurs

12.4 PromotingemploymentforSC/ST/Women/DifferentlyAbledandBPLfamilies

13 InvestmentPromotionandmarketingBrandUttarPradesh

14 Domestic&GlobalEnvironment Gaining fromexternal factorsandbeing responsive tothem

14.1 Gainingfromexternalfactors

14.2 Responsivetochangingenvironment


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1. Background

1.1. India:Arisingglobaleconomy

IndiaisoneofthekeyAsianeconomiesdrivingtheglobalgrowth.Ithasbeenoneof

theworlds fastestgrowing large economieson thevergeofhaving its largest and

youngest everworkforce; and, in adecades time, set tobecome theworldsmost

populous country. This presents plethora of new opportunities as well as poses

challengesthatthecountrymustfaceupto.

From an industrialisation point of view, India's huge domesticmarket, increasing

GDP growth and the ability to withstand global recessionary trends make it an

attractive destination for investments from world over. Catalysing them are the

recentinitiativesoftheGovernmentofIndiatowardscreatinganationwidethrustto

domesticmanufacturingthroughMakeinIndia,fosteringinnovation,enablingapro-

business regulatory environment, developing skills, protecting Intellectual

Property(IP)andbuildingbest-in-classmanufacturinginfrastructure.Torespondto

theseopportunities,countryhastoundertakeconcretestepsintheformofproviding

training to itsworkforce; generating employment opportunities for itsworkforce;

ensuring inclusive economic development and economic upliftment of its citizens;

endingregionaldisparities;protectingenvironmentandensuringitscarbonemission

targets and at the same time ensuring that it continues its growth momentum

sustainably.

1.2. UttarPradesh:Apotentialeconomicgrowthengine

UttarPradesh,oftendescribedastheheartlandof India, isspreadacross2,40,928

squarekilometresandhas18divisions,75districtsand821communitydevelopment

blocks1. It is the fourth largest state in India in terms of land area covering 7.3

percentofthecountrysgeographicalarea.Thestatehasapopulationof19.98crores

(asper2011census)whichisaround16.5%ofIndiaspopulationandisthehighest

amongst all Indianstates.With aGSDPofRs.11,45,234 crores in2015-162,Uttar

Pradesh is the third largest economy of India contributing 8.4% to the countrys

economy.

TheeconomyofUttarPradeshisprimarilydominatedbythetertiarysector,followed

byprimaryandsecondarysector.ThestateisknownasthefoodbasketofIndiaasit

1UPStateAnnualPlan2016-172UPStateAnnualPlan2016-17


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is the leading producer of sugarcane, pointed gourd, peas, potato, muskmelon,

watermelon, pumpkin, milk and milk products in the country. The state has the

highestnumberofMicro,MediumandSmallenterprises(MSMEs)inIndia3.Thestate

hasanumberof locallyspecialisedbusinessclusterssuchassportsitemsinMeerut,

brassware in Moradabad, perfumes in Kannuaj, leather in Kanpur, shoes in Agra,

embroidered sarees in Varanasi, carpet in Bhadohi, chikan work in Lucknow etc.

Uttar Pradesh is also amongst the top manufacturing destinations in India

contributingmorethan8%ofnationalmanufacturingoutput.Thestate isa leading

electronichardwareexporter inthecountryandhasalsoemergedasakeyhub for

IT/ITeSandservicesectorincludingsoftware,captivebusinessprocessoutsourcing

(BPO) andR&D services.The tertiary sectorhasbeendrivenby trade,hotels, real

estate,finance,insurance,transport,communicationsandotherservices.

1.3. IndustrialInvestment&EmploymentPromotionPolicyofUttarPradesh2017:

CoreIntentions

The Industrial Investment &EmploymentPromotionPolicyofUttarPradesh2017

willstrivetoleveragetheinherentstrengthsofthestatewhiledevelopingnewones

andtacklingitsunderlyingweaknessesconsideringtheeconomicdynamicsatplayat

the Indian,Asianand theGlobal level.Thepolicywillaim tocreatea framework to

stabilizeandmakeexistingindustriesmorecompetitiveaswellasattractandrealize

new international and national investments in the industrial sector. The core

intentionsofthepolicyare

1.3.1 Createa framework for industrialgrowth thatempowerspeopleandcreate

jobs,thusleadingtoarippleeffectintheeconomy

1.3.2 Create a roadmap in the State for improving its ability to attract and

facilitatebusiness.

1.3.3 Provide a reference point for intra-governmental and public-private

coordinationofpolicies,lawsandprinciplesofeconomicdevelopment.

1.3.4 Stimulateinstitutionallearningthatcomprisesstate-industryinteractions.

2. Visionofthepolicyandimplementation

ThevisionoftheIndustrialInvestment&EmploymentPromotionPolicyofUttarPradesh2017

is to establish Uttar Pradesh as a nationally and internationally competitive investment

3 Department of MSME, Government of Uttar Pradesh


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destination thereby generating employment and igniting sustainable, inclusive and balanced

economicgrowthofthestate

2.1. Mission

Increasecapitalinvestmentsinthestate

Providequalityinfrastructureforindustriestoflourish

Promoteeaseofdoingbusinesstocreatebusinessfriendlyenvironment

Generate maximum direct and indirect employment and self-employmentopportunitiesforbothskilledandunskilledworkforce

Skilltheworkforceofthestatetoensureemployabilityandempowerment

Providepro-activesupporttomicro,smallandmediumenterprises

Promotethespiritofinnovationandincentivizeentrepreneurshipamongyouth

Ensurebalanced,sustainableandinclusiveeconomicdevelopment

Ensureeffectiveimplementationofthepolicy

2.2. Strategiestoachievethevision

TheGoUPwillstrivetoachievethevisionthroughthefollowingstrategies

EnablinginfrastructureDevelopingnewinfrastructureandupgradingexistingones

EmploymentgenerationCreatingopportunities

FiscalincentivesAttractinginvestments

Easeofdoingbusiness-Creatingaconduciveindustrialenvironment

MakeinUPLeveragingthesuccessofMakeinIndia

SkilledManpowerReapingthebenefitsofdemographicdividend

InnovationPromotingStart-Ups

Micro,Small&MediumEnterprisesEnsuringallroundindustrialgrowth

SectoralapproachBenefittingfromsectorsofstrength

Sustainable & Inclusive growth Ensuring clean & balanced distribution ofeconomicgrowth

InvestmentPromotionandmarketingBrandUttarPradesh.

Domestic & Global Environment Gaining from external factors and beingresponsivetothem


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2.3. Implementationofthepolicy

2.3.1 Thispolicywillcomeintoeffectonthedateofitsnotificationandwillremainin

forcefortheperiodof3years.

2.3.2 If at any stage a situation arises which necessitates any amendment or

supersessionofthepolicy,only thecabinetwillbeauthorised toapprovesuch

amendments/supersession.

2.3.3 Incaseofanyamendment inthispolicy, ifanypackageof incentives isalready

committedbythestategovernmenttoanyunit,willnotbewithdrawnandthe

unitwillcontinuetoremainentitledtothebenefits.

2.3.4 UnitsforwhichanypackageofincentiveshasalreadybeencommittedbyGoUP

underIIIP2012willcontinuetoremainentitledtothebenefits.

3. Enabling infrastructure Developing new infrastructure and

upgradingexistingones

Availability of an enabling and resilient infrastructure is one of the crucial backbones of

industrial growth. It not only reduces operation costs of businesses, but also rebalances the

economyandleadstohighergrowthandlivingstandards.

However,suchresilient infrastructureswhicharealignedtothegrowthobjectivesofthestate

and canprove tobe transformative in the long run,often cannotbeprovidedby theprivate

sector.TheGoUP is committed to create andmake available such facilities.TheGovernment

realises the importance of private investments in achieving this objective.Hence itwill also

strive to create a regulatory environment which can unlock private investment in new &

existinginfrastructureofthestateandsupportlongtermgrowth.TheGovernmentthroughthis

policyalsointendstoaligntheplanningofinfrastructuremoreeffectivelywiththelocalgrowth

requirements.

Asakeypillarofitsindustrialgrowthstrategy,theGoUPwillfocusonthefollowingeconomic

infrastructures

3.1. Land

Availabilityof land is aprimary requisite for sustainable industrialdevelopment.The

State has substantial availability of both government and private land parcels for

industrialdevelopment.

In order to further enhance the rate of industrialization, the State Government will

identify vacant land that can be used for the purpose of Land Banks for industry in


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industrialareas/zones.Thispolicy intends tosubsequentlymakeavailable these land

parcelsatcompetitivepricetotheinvestors.

TheGovernmentwillplaninfrastructureinexistingandnewareasinlinewithindustry

requirements. The existing industrial areas will be expanded as needed and new

industrial areas will be developed with necessary industrial infrastructure. Such

industrial infrastructureswill be developed at all regions for balanced and equitable

growth based on the geographical strength and after assessing the demand. Rules

relating to allotment and management of land will also be rationalized and made

investorfriendlyincludinglandusechange.

3.2. PromotingIndustrialParks/Estates

3.2.1. Developingnewindustrialparksandupgradingexistingones

Industrial Parks/ Estates provide integrated facilities to industries and its

robustnesscontributestowardstheincreaseinindustrialefficiency.Thispolicy

seekstodevelopnewindustrialparksandupgradetheexistingoneswithanaim

toattractnewindustriesandprovidequalityfacilitiestotheexistingindustries.

Quality infrastructure facilities will also be planned in industrial lands near

notified industrialestatesandclusters.ThestatewillfocusondevelopingFood

Park, IT Park, Textile Park and Pharma Park. Industrial parks around major

expressways, national highways and state highways will be established. The

GoUPwillalsopromotecountryspecificindustrialparkstoattractFDI.

Establishment of logistics facilities including Truck terminals and

accommodationfacilitiesforemployees inallthemajor industrialparkswillbe

promoted. Provision of assistance for upgrading existing infrastructure in

industrial estates/ parks developed by the state industrial development

authoritiesandcorporationwillalsobemade.

3.2.2. PromotingPrivateIndustrialParks/Estates

Thepolicyintendstoencourageprivatesectorforsettingupofindustrialestates

and specialized Industrial Parks to promote sector-specific economic activity

and generate employment. The policy will emphasise providing financial

assistancetothedevelopersofsuchestates/parkstoaccelerateinvestmentsina

plannedmannerbyprovidingplug&playfacilitiestoindustries.TheDevelopers

will be encouraged to provide adequate logistics facility to the industries

includingTruckParkingBaysandaccommodation facilities for the employees.


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The GoUP will special focus on promoting private industrial parks around

Lucknow-Kanpur,Kanpur-AllahabadandVaranasi-Allahabadzones.

3.2.3. Incentivesforprivatesectorindustrialparks/estates

TheGovernmentwillprovidefollowingincentivestoindustrialparks/estatesof

morethan100acresinBundelkhand&Poorvanchal;150acresinMadhyanchal;

andmorethan50acresincaseofAgroParksinBundelkhand,Poorvanchaland

Madhyanchaldevelopedbyprivatesector

3.2.3.1 Interestsubsidyintheformofreimbursementofinterestofupto50%of

annual interestonthe loantakentobuy land,calculatedonthebasisof

prevalentcirclerate,for7yearssubjecttoamaximumceilingofRs.50

lacsperannumperindustrialestate/agropark.


annual interestfor7yearsonthe loantakenforbuildinginfrastructure

inthe industrialparks/estatessubjecttoRs.10croreperyearwithan

overallceilingofRs.50croreperindustrialestate/agropark.


annual interest for 7 years on the loan taken for building

Hostel/DormitoryHousing forworkers in the industrialparks/estates

subjectRs. 5 croreperyearwithanoverallceilingofRs.30croreper

industrialestate/agropark.

3.2.3.4 100% exemption/ reimbursement on stamp duty on the purchase of

landby thedeveloperand50%exemptiononstampdutyto individual

buyers (first) will be provided on purchase of plot in the industrial

parks/estates.

3.3. NationalInvestment&ManufacturingZones

Inorder tomaximize thecontributionofmanufacturingsector instateseconomy, the

GoUP intends to ensure speedy implementation of two National Investment &

Manufacturing Zones (NIMZ) in Jhansi and Auraiya under the provision of National

ManufacturingPolicy.

ManufacturingindustriessetupintheseNIMZswillbeprovidedthefacilitiesmentioned

inNationalManufacturing Policy ofGovernment of India such as simplified business

regulations;incentivesfortechnologyacquisitionandproduction/adoptionofpollution

controllingequipment/machines/devices;incentivesforskilldevelopmentinitiativesby

theprivatesector;accesstofinanceforsmallandmediumenterprises.


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3.4. SpecialEconomicZones

Special Economic Zones (SEZs) contributes to the states economy by generating

additional economic activity, promoting exports of goods and services, promoting

investmentfromdomesticandforeignsourcesandcreatingemploymentopportunities.

InadditiontoNoidaSpecialEconomicZone(SEZ)setupbytheCentralGovernmentand

MoradabadSEZsetupbytheStateGovernment,atotalof19SEZshavebeennotifiedin

the state. In these SEZs, GoUP aims to provide simplified clearances, world class

infrastructureandastablefiscalregimetoattractinvestments.

3.5. Industrial&InvestmentregionsandIntegratedManufacturingClusters

Industrial&investmentregionswithspeedyaccesstokeymarkets,adequatesupplyof

water and electricity, excellent waste management system and recycling facilities

provideinvestorsandmanufacturerstheperfectbreedingground.TheGoUPintendsto

create such regionswith themost advanced infrastructure and outstanding facilities

tailoredtosuittherequirementsofmodernindustriesalongmajorexpresswayssuchas

Lucknow Agra Expressway and major road networks of the state. GoUP intends to

developLucknow-Kanpur,Kanpur-AllahabadandVaranasi-Allahabadzonesonthelines

of Noida & Greater Noida and promote industrial & investment regions and private

industrialparksinthesezones.

Three IntegratedManufacturing Clusters (IMC) includingAuraiya Etawah -Kanpur

Cluster,Allahabad-VaranasiClusterandAgra-AligarhClusterhavebeenidentifiedalong

EDFC for giving boost to the manufacturing sector in the State. Dadri Noida -

Ghaziabad investmentregion,strategicallypositionedclose toWDFC&EDFC link,will

bedevelopedwithanaimtoprovideseamlessconnectivityandworldclassfacilitytothe

Industrialunits.

3.6. Connectivity

Connectivity is an absolute necessity for ensuring access to markets and achieving

greatereconomiesofscaleleadingtohighergrowthandlivingstandards.Thelongterm

strategyoftheGoUPistocreateaconnectivitywebofair,water,roadandrailnetwork

thatwillhelpthestatesindustriesandmanufacturingunitsswitchseamlesslybetween

differentmodesoftransportastheysendtheirgoodstomarketsinIndiaandabroad.In

additiontothis,theGoUPalsorecognisestheimportanceofcreatingaworldclassdigital

connectivityframeworkinthestate.


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3.6.1. Roadways

The existing Lucknow Agra Expressway connects Agra and Lucknow and the

upcomingPoorvanchalExpresswaywill further connectLucknow toGhazipur.

The GoUP intends to further construct a road corridor connecting Mathura,

Kashi, JhanshiandGorakhpur therebyconnecting theentireUP.Thestatealso

hasadensenetworkof4laneand6lanehighways.TheGoUPwillworktowards

furtherdevelopingquality4-laneand6-lanehighwayscriss-crossingtheentire

state. Thepolicy therebywill enable the industrialproducts including thatof

weaversandothertraditionalartisansofthestatetoeasilyreachthemarket.

3.6.2. Airways

UP has major national and international airports at Lucknow, Varanasi,

AllahabadandGorakhpur.Forfurtherimprovingtheairconnectivityinthestate,

GoUPintendstodevelopnewairportstoconnectalltheregionsofthestatewith

the restof thecountry.Privatesectorparticipationwillbeencouraged for the

same.Alongwith facility of dry cargo, aircraftmaintenance hubswill also be

encouraged.

3.6.3. Railways

Toimproverailconnectivityinthestate,theGoUPwillpursuewithGovernment

ofIndiatoincreasethereach&densityofrailwaynetworkinthestate.GoUPwill

strivetoincreasethefrequencyoftrainsinthestatetomeetthetrafficneedsof

thestate.

3.6.4. Waterways

The GoUP also intends to take all necessary action for developing the Ganga

WaterwaysconnectingAllahabad,VaranasiandHaldiaSeaPortatKolkata.This

willenablethestatetoderivebenefitoutofthereliableandcheapermovement

offreightthroughGangaWaterways.

3.6.5. Digital

DigitalConnectivitywillbeoneoftheprimefocusoftheGoUP.In linewiththe

Digital IndiaProgramofGovernmentof India, thepolicy intends to transform

Indiaintodigitalempoweredsocietyandknowledgeeconomy.Towardsthis,the

GoUPintendstoprovidenecessaryadministrativeassistancetoagenciesrelated

to thedevelopmentofbroadbandhighways andother infrastructure ensuring

universalaccesstomobileconnectivity.


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3.7. Transportationandlogistics

Excellenttransport infrastructuredoesnot justreducedelays; itcanraiseproductivity

by enablingvillages and cities to achieve agglomeration effects, and thus support the

rebalancing of the state economy. Equally important is the role of logistical

infrastructurewhich enablesdeliveryofproducts and services as andwhen they are

neededanddesired therebyservingas amajorenablerofgrowthof industrialisation,

tradeandcommerceinaneconomy.

3.7.1. Transportation

GoUPintendstoexpandtheexistingmetroservicesinLucknowandNOIDAand

commence development of new metros at Kanpur, Meerut, Agra, Varanasi,

Allahabad,Gorakhpur,JhansiandGhaziabad.TheGoUPwillalsostrivetowards

reducing traffic by widening and strengthening of core state highways. The

government also intends to introduce advanced traffic management through

latesttechnologies.

3.7.2. Logistics

GoUP intends todevelopmulti-modal logisticshubatstrategic locationsof the

stateandacrossthevicinityofWDFCandEDFC.GoUPwillalsodevelopdryports

topromoteexports.Thepolicyintendstopromoteprivatesectorinvestmentsin

the development of Logistics Park across the state. Establishment of truck

terminals in all themajor existing andupcoming industrialparkswill alsobe

promoted.

3.8. DedicatedFreightCorridors

ConsiderableshareofthefirsttwoofIndiasdedicatedfreightcorridorstheWestern

Corridor running between Delhi & Mumbai and Eastern Corridor running between

LudhianaandKolkataliesinUttarPradesh.Thepolicyintendstoleveragethesefreight

corridorsandtheirinfluenceareasfortheindustrialandeconomicgrowthofthestate.

3.8.1. WesternDedicatedFreightCorridor(WDFC)

The upcomingWDFC stretches fromDadri in Ghaziabad to JawaharlalNehru

PortatMumbaiviaVadodaraAhmedabadPalanpurPhuleraRewariand

coversanoverall lengthof1504Km.The freightcorridorwillbeadouble line

electrictrackwithworldclassandstate-of-the-arttechnology.

TheWDFCisofimmensesignificancetotheeconomyofUttarPradeshasithasa

potentialofreducingthetraveltimeofgoodsfromthestatetoaround14hours.


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GoUPintendstoreapitsbenefitthroughincreasedeconomicactivityandsafe&

quick transportationof thestates industrialgoodsaswellas itsagro-products

benefittingthefarmersofthisagrarianstate.

3.8.2. EasterndedicatedFreightCorridor(EDFC)

TheEasternDedicatedFreightCorridorwitharoutelengthof1856kmconsists

of two distinct segments: an electrified double-track segment of 1409 km

betweenDankuni inWest Bengal & Khurja inUttar Pradesh & an electrified

single-tracksegmentof447kmbetweenLudhiana -KhurjaDadri.Outof the

1856km total lengthof rail track in theEDFCproject,1049km (57percent)

passesthrough18districtsofUttarPradesh.

The government intends to benefit from the existing freight traffic being

diverted to the corridor and thereby enable faster transportation of goods to

nearbyports.GoUPwillalsostriveforachievingintegration,transformationand

inclusion through theprojectby improving transport connectivity andmarket

integrationforfreightconsigningindustriesinthestate.

3.8.3. The Government is committed to extend all necessary support to the

Governmentof India forsuccessfuland timelydevelopmentof thesecorridors.

Thestatewillcreate a framework tocapturevalueout thesededicated freight

corridors and ensure timely completion of projects around these corridors

therebyunleashingfurthereconomicactivitiesandjobgrowth.

3.9. IndustrialCorridors

Withstrategicfocusoninclusivedevelopmenttoprovideanimpetustoindustrialization

andplanned urbanization, fivemajor industrial corridors are beingdeveloped across

India.UttarPradeshhasaconsiderableshareoftwoofthesecorridorsDelhiMumbai

Industrial Corridor (DMIC) and Amritsar Kolkata Industrial Corridor (AKIC). GoUP

intends to capitalise on these corridors for raising the share ofmanufacturing in the

statesGrossDomesticProduct(GDP).

3.9.1. DelhiMumbaiIndustrialCorridor(DMIC)

Leveragingthehighspeed,highcapacityconnectivitybackboneprovidedbythe

WDFC, the Delhi-Mumbai Industrial Corridor (DMIC) is being developed

alongside this freightcorridor.TheDMICproject incorporatesmega Industrial

zones, threeportsandsixairportsand a six-lane intersection-freeexpressway

connectingMumbai&Delhiandpowerplants.


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Uttar Pradesh has a vast area of 36,000 sq. km, extended across 12 districts

alongDelhiMumbaiIndustrialCorridor.GreaterNoidaisthefirstnodeofDMIC

aswell as the Gateway of the project. The GoUP intends to derivemaximum

value out of DMIC towards which implementation of early bird projects like

Integrated IndustrialTownship atGreaterNoida,Multi-ModalLogisticshub at

DadriandMulti-ModalTransportHubatBorakiarealreadyunderway.Meerut

Muzaffarnagar Industrial Area and other new industrial regions will also be

establishedtobenefitfromthecorridor.

3.9.2. AmritsarKolkataIndustrialCorridor(AKIC)

Amritsar Kolkata Industrial Corridor (AKIC) project is structured around the

EasternDedicatedFreightCorridor(EDFC)andthehighwaysystemsthatexist

onthisroute.GoUPintendstomaximizevaluefromthiscorridorbydeveloping

IntegratedIndustrialTownships,IntegratedManufacturingClustersandlogistics

hubs along the corridor. The Government has identified green field railway

stationsalongwhichnewindustrialzoneswillbedeveloped.

3.10. Power

Availabilityofqualityuninterruptedpowerisoneofthecrucialfactorsofproductionfor

industries. The State Government is committed to strengthen the power sector and

eliminate the demand supply deficit. To meet the growing demand in the state,

Governmentwouldencourageprivateparticipation inenergygeneration, transmission

and capacity augmentation. Measures will be taken to reduce AT&C losses by

administrativemeasures, curbing theft &pilferageof electricity and settinguppolice

stations.

The policy also intends to identify and provide industrial clusters having minimum

specified load with independent feeders and exempted them from power cuts. The

procedure forenhancement,reductionandsurrenderofpower loadwillbesimplified.

GoUPwillensurethatdedicatedfeedersconstructedbyindustriesattheirowncostare,

innocase,tappedforotherpurposes.

Thestatewillalsoallowopenaccessforallindustrysectorsinthestateandsinglepoint

openaccesstoprivateindustrialparks.

3.11. Water&Drainage

Waterisanothercriticalinputforindustries.Toensuresupplyofwateraccordingtothe

demandofindustriesandtostrengthenthedrainagesystemforwaterandwaste,efforts


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will bemade to ensure private participation.Waterwould bemade available to the

industriesonprioritybasis.Forthispurpose,recyclingofusedwaterbyindustriesand

layingofseparatepipelinefor industrialwaterusewillbeaccordeddue importanceas

per ground-water policy. The governmentwill encourage rainwater harvesting. The

policyalsointendstoprovidenecessarywaterconnectionanddrainagefacilitiesinthe

industrialareas/estatesofallindustrialdevelopmentauthorities.

3.12. PrivateSectorInfrastructureInvestments

TheGovernmentrecognisestheimmensepotentialofprivatesectorinthedevelopment

ofeconomicinfrastructure.Theincreasedaccessofprivatefund,improvedmanagement

andhigherefficiencyininfrastructureprojectsthroughprivatesectorparticipationcan

usher in the policys vision of creating a resilient infrastructure yielding long term

benefits.

Hence, the Government is committed to support private sector infrastructure

investment, by creating the right business environment through more consistent

policies. The Government will also welcome and itself explore new and innovative

means of collaboration with the private sector including various models of Public

PrivatePartnerships(PPP).

4. EmploymentgenerationCreatingopportunities

Acceleratingemploymentgrowthiscrucialforupliftingthesocio-economicstatusofthecitizens

ofthestateandofferthemhigherstandardsofliving.Giventhestateiswitnessingasignificant

demographic growth with an expanding working age population, the GoUP intends to lay

emphasisoncreationofopportunities thatwoulddirectlyaugmentemployment in theState.

Towards this, the policy intends to offer a right environment ensuring these employment

opportunities are inclusive innature and reaches all sectionsof the society & regionsof the

state.

With special benefits for creating job opportunities in Bundelkhand, Poorvanchal and

Madhyanchal regions of the state, the policy will also incentivise industrial units creating

employmentopportunitiesforbothskilledandunskilledworkersintheseregionsofthestate.


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5. FiscalincentivesAttractinginvestments

ToattractmaximuminvestmentandmaintaincompetitivenessoftheindustriesintheState,the

policywillprovide following fiscal incentives,subsidiesandconcessionsoncertaintermsand

conditions-

5.1 Stampdutyexemptionof100% inBundelkhand&Poorvanchal,60% inMadhyanchal

and50%inPaschimanchalregionsofthestate.

5.2 EPF reimbursement facility to the extent of 50% to all such new Industrial units

providingdirectemploymentto100ormoreunskilledworkers.

5.3 ReimbursementofnetVATandCSTorthenetamountdepositedinStatesaccountvis-

a-visshareofthestateunderGST-

a. 90%forSmallIndustriesfor5years.Thiswouldbesubjecttoannualceilingof

20%ofcapital investmentoractual taxdeposited,whichever is lower,withan

overall ceiling of 100% of fixed capital investment in Bundelkhand &

Poorvanchal,90%offixedcapitalinvestmentinMadhyanchaland80%offixed

capitalinvestmentinPaschimanchal.

b. 60%forMediumIndustriesfor5years.Thiswouldbesubjecttoannualceiling

of20%ofcapitalinvestmentoractualtaxdeposited,whicheverislower,withan

overall ceiling of 100% of fixed capital investment in Bundelkhand &

Poorvanchal,90%offixedcapitalinvestmentinMadhyanchaland80%offixed

capitalinvestmentinPaschimanchal.

c. 60%for largeIndustriesaboveRs.10crandbelowRs.200crfor5years.This

wouldbe subject to annual ceilingof20%of capital investmentor actual tax

deposited,whichever is lower,withanoverallceilingof100%of fixedcapital

investment inBundelkhand&Poorvanchal,90%of fixedcapital investment in

Madhyanchaland80%offixedcapitalinvestmentinPaschimanchal.

d. 70% for Mega/ Mega Plus/ Super Mega category Industries for 10 years in

Paschimanchal, 12 Years in Madhyanchal and 15 years in Poorvanchal &

BundelKhand. This would be subject to annual ceiling of 20% of capital

investmentoractualtaxdeposited,whicheverislower,withanoverallceilingof

150%offixedcapitalinvestmentinBundelkhand&Poorvanchal,100%offixed

capital investment in Madhyanchal and 80% of fixed capital investment in

PaschimanchalU.P.

5.4 Capital Interest Subsidy to the extent of 5% per annum for 5 years in the form of

reimbursement on loan taken for procurement of plant &machinery, subject annual

ceilingofRs.50lacs.


Page18of36

5.5 InfrastructureInterestSubsidytotheextentof5%perannumfor5yearsintheformof

reimbursementon loantakenfordevelopmentof infrastructuralamenitiesforself-use

likeroads,sewer,waterdrainage,erectionofpowerline,transformerandpowerfeeder,

subjecttoanoverallceilingofRs.1Crore.

5.6 Interestsubsidytotheextentof5%perannumfor5yearsintheformofreimbursement

onloantakenforindustrialresearch,qualityimprovementanddevelopmentofproducts

by incurringexpenditureonprocurementofplant,machinery&equipment forsetting

uptesting labs,qualitycertification labsandtoolrooms,subjecttoanoverallceilingof

Rs.1Crore.

5.7 Exemption from electricity duty to all new industrial units set up in the state for 10

years.

5.8 Exemption from electricity duty for 10 years to all new industrial units producing

electricityfromcaptivepowerplantsforself-use.

5.9 ExemptionfromMandifeeforallnewfoodprocessingunitsonpurchaseofrawmaterial

for5years.

5.10 Needbasedassistancetoindustrieswhicharedisallowedforinputtaxcreditunderthe

GSTregimewillbeprovidedintheformofreimbursementofVAT/CST/stateshareof

GSTdepositedbytheunit.

Inadditiontotheabove,thefacilityofinterestfreeloanequivalenttothesumofVATandCST/

stateshareofGSTdepositedbyindustrialunitsadmissibletoeligibleindustrialunitsunderthe

previouspolicywillbecontinued.

5.11 Incentivisingemploymentgeneration

Units generating minimum employment of 200 direct workers including skilled and

unskilledwillbeprovided10%additionalEPFreimbursementfacility.

5.12 Allincentivesintheformofreimbursement,subsidies,exemptionsetc.,willbesubjectto

amaximumof100%offixedcapitalinvestmentmadeinPoorvanchalandBundelkhand

areaofUP,90%offixedcapitalinvestmentmadeinMadhyanchalareaofU.Pand80%of

fixedcapitalinvestmentmadeinPaschimanchal.

5.13 PromotingMegaInvestments

Megaprojectshavemultipliereffectandareessentialforcreationof jobsandinclusive

growth.DevelopmentoflargeindustriesinthestatealsoattractsancillariesintheSME

sectorleadingtoapositivedominoeffect.


Page19of36

Recognisingthemultiplebenefitsthatmegaprojectsprovide,thepolicyintendstooffer

customisedpackageofincentivestoattractsuchinvestments.TheGoUPwillalsomakea

concertedefforttoensurethatthereisbalancedregionaldispersalofsuchinvestments

acrosstheState.

5.13.1 The facilitation ofmega,mega plus & supermega investments in the state

wouldbeapplicableunderthefollowingframework:

CategoryMinimumeligibilityrequirements

Paschimanchal Madhyanchal Bundelkhand,&Poorvanchal

Mega

CapitalinvestmentofmorethanRs.200crore

butlessthanRs.500croreor

Providingemploymenttomorethan1000workers




CapitalinvestmentofmorethanRs.100crores

butlessthanRs.250crores

orProvidingemploymenttomorethan500workers

Mega

Plus

CapitalinvestmentofmorethanRs.500Crores

butlessthanRs.1,000crore


CapitalinvestmentofmorethanRs.300Crores






Super

Mega

CapitalinvestmentofmorethanRs.1,000Crore


CapitalinvestmentofmorethanRs.750Crore




5.13.2 The incentives will be applicable for new units as well as projects under

expansion/diversification.

5.13.3 Projects in themega categories (mega,megaplus and supermega)willbe

processedonacasetocasebasisforfinalisingtheincentivestructure.

5.13.4 Allincentivesformegainvestmentsintheformofreimbursement,subsidies,

exemptions etc., will be subject to a maximum of 150% of fixed capital

investmentmadeinPoorvanchalandBundelkhandareaofUP,100%offixed

capitalinvestmentmadeinMadhyanchalareaofU.Pand80%offixedcapital

investmentmadeinPaschimanchalareaofUP.

Note:Unitsavailingincentivesfromanyotherpolicyorthosesanctionedbythedepartmentsof

theStategovernment,willalsobeentitledtoavailincentives/benefitsmentionedinthispolicy


Page20of36

providedthesamekindofbenefits/incentivesarenotbeingavailedfromanyotherpolicy.Ifa

unitavailsanyincentiveunderindustryspecificpolicieslikeAgro&FoodProcessingPolicy,IT

Policyetc.,itwillnotbeprovidedincentiveofsimilarnatureunderthispolicy.

6. Easeofdoingbusiness-Creatingaconduciveindustrialenvironment

This policy is aimed at creating conducive business friendly environment in the State by

ensuring simplification of procedures, timely clearances benchmarked with the best and

responsivefacilitationservices.

6.1 Simplificationofprocedures

TheGoUP intendstoregularlyreview itsacts,rules,applicationformsandprocedures

related to industrial services/ clearances/ approvals/ permissions/ licenses and

whereverpossible-

6.1.1 Rationaliseorabolishoramendasperexistingregulatoryregime.

6.1.2 Introduceprovisionsrelatedtoself-certification,deemedapprovalandthirdparty

certification.

6.2 Timeboundclearances

Providingspeedyandtimeboundclearancesisoneoftheprimeintentionofthispolicy.

Towards this goal, the GoUP will regularly review all its existing acts, rules and

proceduresrelatedtoindustrialservices/clearances/approvals/permissions/licenses

andwhereverpossible-

6.2.1 Benchmarktheexistingtimelinesagainstthebest

6.2.2 Delegatenecessarypowerstodistrictlevelofficerstoensuretimelydisposal.

6.2.3 TimelydeliveryofeachservicewillbeensuredthroughanAct.

6.3 SingleWindowClearance

TheGoUPrealisestheneedforaneffective implementationofamechanismtoprovide

all industrialservices/clearances/approvals/permissions/ licensesonlineandunder

oneroof.Hencethepolicyintendstoachievethefollowing

6.3.1 A dedicated Single Window Clearance Department directly under the Chief

MinistersOfficewillbecreatedwhichwillbethesoleinterfaceoftheGovernment

for providing all industrial services/ clearances/ approvals/ permissions/

licenses.


Page21of36

6.3.2 ASingleWindowTechnologyPortalof internationalstandardswillbedeveloped

through which applications will be received and all industrial services/

clearances/approvals/permissions/licenseswillbedeliveredonline.

6.3.3 ForeffectivefunctioningoftheSingleWindowClearancemechanismaStateLevel

CommitteechairedbytheChiefSecretary,GoUPwillbeconstituted.

6.4 EaseforCommercialactivitiesinthestate

6.4.1 ATradeWelfareBoardwillbeestablishedtoprotecttheinterestoftraders.

6.4.2 Aspecialarbitrationauthoritywillbeestablishedineachdistricttoresolveissuesoftraders.

6.4.3 The administrative structure for commercial activities in the state will besimplifiedtoprovideconduciveenvironmenttothetraders.

6.5 IndustrialSecurity

The GoUP intends to provide a safe and secure industrial environment in the state.

Towards this dedicated police force headed by specialised officerwill be deputed at

industrial clusters/ areas in regions like Noida, Kanpur, Gorakhpur, Bundelkhand,

Poorvanchal. Integrated police cum fire station will also be established in major

industrialclusters/areas.

6.6 Otherregulatorysimplificationenablers

The policy also intends to implement the following measures to enable business

regulatorysimplificationsinthestate-

6.6.1 Theexistingindustrialhelplineservicewillbestrengthened

6.6.2 Dedicatednodalofficerswillbeprovidedforfacilitationtomegaprojects.

6.6.3 Specialised soft skill trainingswillbe introduced topromote customeroriented

mindsetinalldepartmentsprovidingservicetoindustries.

6.7 StateInvestmentPromotionBoard(SIPB)

6.7.1 For creating an enabling structure to expedite decision making pertaining to

industrial projects, SIPB will be constituted under the Chairmanship of Chief

MinisterandtheChiefSecretarytotheGovernmentasMemberConvener.

6.7.2 The board will carry out investment promotion activities such as conducting

national and international roadshows, sign MoUs with industries & provide

implementationsupport.


Page22of36

6.7.3 Theboardwillrecommendonpolicyissuesrelatingtoinvestmentfacilitation.

6.7.4 Theboardwillrecommendincentivesandfacilitiesformegaprojects.

6.7.5 Theboardwillalsotakeupissuesgoverningindustrialenvironmentinthestate.

7 MakeinUPLeveragingthesuccessofMakeinIndia

The Make in India program of the Government of India has been able to draw the global

attentionbydrivinginvestments,fosteringinnovation,developingskills,protectingIntellectual

Property(IP) and building best-in-classmanufacturing infrastructure.As a strategy to usher

industrialgrowthinUttarPradeshandcapitaliseonthepositiveglobalsentimentsgeneratedby

the progressofMake in Indiacampaign, theGoUPwillembrace this landmark initiativeand

strive to implement it in letterandspiritby launching acomprehensiveprogramof Make in

UP.

In lineswiththe Make in Indiaprogram, the Make inUPprogramwilladoptastrategy that

inspires,empowersandenables inequalmeasure inmakingUPamanufacturinghubofIndia.

Towardsachievingthisgoal,GoUPwillimplementthefollowing

7.1 CreationofadedicatedMakeinUttarPradeshDepartment

7.2 TheMake inUPDepartmentwill identifyandcreate industryandsectorspecificState

Investment and Manufacturing Zones (SIMZ) with an aim to spur manufacturing,

generateemployment,raiselivingstandardsandmeetnational&internationaltrendsof

sustainedgrowth.

7.3 Toboosttheentiremanufacturingvaluechain inthe identifiedzones,theGovernment

will ensure necessary timely interventions in consultation with all stakeholders in

additiontothefiscalandnon-fiscalmeasuresmentionedinthispolicy.

8 SkilledManpowerReapingthebenefitsofdemographicdividend

Accelerated economic growth requires skilled and trained manpower. Around one-fifth of

Indiaspopulation resides inUttarPradeshofwhich60% are in theworking age group.The

Government intends to reap thebenefitof thishugedemographicdividend for the industrial

growthof thestatebyaligning theskillsof thisagegroupaspercurrentand future industry

needs.

Thispolicyaimstocreateprovisionsforensuringsector-specifichigh-qualitymanpowerbased

on the principle of 5Es Education,Employability,Employment,Economy andEnvironment

towardswhich


Page23of36

8.1. GoUPwillperiodicallymap Industryspecificskill gaps& requirementsand introduce

industry-responsive short term, long term & modular courses in existing ITIs,

Polytechnic and Engineering colleges with active user-industry participation and

involvementinformulatingthecoursematerialandtraining.

8.2. Thepolicywillpromote existing &new investments enhancing sector-specific skilled

manpower base and employers willing to recruit manpower from Uttar Pradesh. A

strategywillbe formulated toattractsuch industriesand industrialestablishments to

joinhandswithskilldevelopmenttrainingprogrammesofthestate.

8.3. SkillDevelopmentCentreswillbeestablishedinmajorindustrialareas/clusters/parks

withspecialfocusonharnessingthesocialcapitalinruralareas.

8.4. SpecialattentionwillalsobegiventoskilldevelopmentofSC/ST/Backwardclassand

Womenentrepreneursonhandicraftsandhouseholdbusiness

8.5. Special effortswill be put by SkillDevelopmentDepartment to train youth enabling

employmentinindustrialunitsasapprentice.

9 InnovationPromotingStart-Ups

ReiteratingGovernmentof Indiascommitment tomaking India thehubof innovation,design

andStart-ups,GoUPwillaimatacceleratingStart-upmovementintheState.Statewillfocuson

buildingastrongeco-systemfornurturinginnovationandStart-upsthatwilldrivesustainable

economic growth and generate large scale employment opportunities. In order tomeet the

objectiveoftheinitiative,statewillemphasiseonthefollowing-

9.1 RegulatorySimplificationandHandholding

Thepolicy intendstoreducetheregulatoryburdenonStartUpsandallowthemtodo

whattheyarebest in innovate.Towardsthis,thepolicywillmakecomplianceunder

varioustaxation,labourandenvironmentallawsfriendly,flexibleandlowcostforstart-

ups.

9.2 FundingSupportandIncentives

The policy intends to incentivise development and growth of innovation driven

enterprisesforwhichthestatewillcreateaventurecapitalfund

9.3 IncubationSupport

Tocatalysethecultivationofsuccessfulstart-upenterprisesinthestate,GoUP intends

toestablishabestinclassincubationcentre.Itwillprovidestart-upswithresourcesfor

runningtheirbusinessesandconnectthemtonetworkofexperts.Incubationcentresin

Government and Private engineering colleges, management institutes and other

technicalorganisationsofthestatewillalsobepromoted.


Page24of36

10 Micro, Small & Medium Enterprises (MSMEs) Ensuring all round

industrialgrowth

MSMEs constitute an important segment of the economy of Uttar Pradesh in terms of

employment generation and as a source of foreign exchange earnings through exports. The

sector is also strategically important for attracting capital investment, increasing industrial

output and enhancing the GDP of the state.With the highest number ofMSME units in the

country, Uttar Pradesh today is a leading exporter of MSME products in categories like

handicrafts,engineeringgoods,carpets,readymadegarments,leatherproductsetc.

Thepolicyintendstoprovidethefollowingfacilitiesandincentivesfortheholisticdevelopment

ofMSMEsinthestate

10.1. ImprovingflowofcapitalandcreditforMSMEs

GiventhecapacitychallengesfacedbyMSMEsandthevolatilemarket,smoothflowof

capital and credit is a sine-qua-non for successful establishment of such units

supplemented by government assistance for risk mitigation of the enterprises.

TowardsthisthepolicyintendtoprovidethefollowingfiscalincentivestoMSMEs

10.1.1. A corpus fundwill be created to implement Vishwakarma Shram Samman

Yojanatoprovideassistanceintermsofmarginmoneysubsidyandinterest

subsidy to artisans and entrepreneurs of local traditional industries of the

state through bankable projects. The scheme will comprise of two

components. In the first component, traditional artisan such as carpenters,

cobblers, tailors, basket weavers, barbers, goldsmiths, ironsmiths, potters,

sweetmakersetc.willbeprovidedmarginmoneysubsidyandtheprojectwill

bedovetailedwithPradhanMantriMudraYojna. In thesecondcomponent,

entrepreneursof traditional industrieswillbeassistedbyprovidingmargin

money subsidy on a lower scale together with interest subsidy and the

beneficiaries who belong to SC, ST and women categories will have their

projectsdovetailedwithStand-upIndiaYojna.

10.1.2. Mukhya Mantri Yuva Swarojgar Yojana will be launched to encourage the

educatedunemployedyouthof thestate tosetupenterprises includingboth

industries and service enterprises.Under the schemeMarginmoney subsidy

and interestsubsidywillbeprovided tobeneficiariesand theprojectwillbe

dovetailedwithPradhanMantriMudraYojanaorStand-upYojnadependingon

thescaleoftheprojectandthecategoriesofthebeneficiary.


Page25of36

10.1.3. GoUPwith assistance from financial institutionswill create an SMEVenture

Capital Fund for promoting Start-ups and emerging Small & Medium

Enterprises(SMEs).

10.1.4. The existing interest subsisdy scheme for Small & Medium industries in

Poorvanchal, Madhyanchal and Bundelkhand areas of the State will be

rationalised tomake the interstsubsidyavailable tobeneficiariesatparwith

similarschemesinotherdepartmentsoftheStategovernment

10.1.5. Existing micro & small industries carrying out expansion or diversification

subjecttocriterialaiddownbyGoUPwillbeprovidedinterestsubsisy

10.1.6. TheannualservicefeespayabletoBanksandfinancialinstitutionsforavailing

collateral free loan up to Rs.2 crore under Credit Guarantee Fund Trust for

Micro&SmallEnterprises(CGTMSE)willbereimbursedbyGoUP.

10.2. Capacitybuilding

Inordertocapitaliseonthelimitedwindowofdemographicdividendofthestate,itis

imperativethatyouthshouldbeskilledandtrainedinentrepreneurshipandbusiness.

Variousskilldevelopmentinitiativeswillbeundertakenwhichwillincludeinteralia-

10.2.1. Entrepreneurshipdevelopmentprogramswillbeorganisedacrossalldistricts

ofthestate.InstituteofEntrepreneurshipDevelopment,Lucknowwillactasa

nodalagencyforthepurpose

10.2.2. Six handicrafts Centrewill be established to impart training to artisans and

youngentrepreneursonmodern techniques indesigning,manufacturingand

marketing.UP InstituteofDesign,Lucknowwillactasanodalagency for the

purpose

10.2.3. Departmental Training Centreswill be reviewed and operationalised as per

fieldrequirement.

10.2.4. Focuswillalsobe laidonskilldevelopmentofentrepreneursbelongingtoSC,

STandOBCthroughspeciallydesignedtrainingprograms.

10.3. QualityandStandards

Withrapidadvancement intechnologyand increasinglystringentenvironmentaland

technical standards across the globe, investment in technology up gradation and

testinginfrastructureisvitalforensuringthecompetivenessofMSMEs.Industrieswill

be encouraged to invest in waste disposal system, pollution control facilities and

certifications.


Page26of36

10.4. IndustrialInfrastructureandCommonFacilityCentres

Availability of adequate developed industrial infrastructure is fundamental to

buoyancy of the industries. Towards this the Government will take the following

measures-

10.4.1. Privatesector investment inGreenfieldmini industrialparksof20-100acres

forMSMEswillbeencouraged.Thegovernmentwillprovidefiscalincentivesto

the developer in the form of interest subsidy alongwith reimbursement of

stamp duty towards purchase of land. The State will also share the cost of

construction of electrical sub-stations in the park for which land will be

provided free of cost by the developer. Uttar Pradesh Small Industries

Corporation(UPSIC)willbe thenodalagency for thepurpose to facilitate for

thesettingupofsuchparks.

10.4.2. The policy intends to promote cluster based development in the state by

encouraging formation of Special Purpose Vehicles (SPVs) and dedicated

agencies like societiesof entrepreneursor artisans andproviding themwith

common infrastructure facilities includingCommonFacilityCentresandRaw

MaterialDepots,etc.

10.5. Marketing

Market access and market development of products manufactured in UP will be

ensured inbothdomesticand internationalmarkets.TheStategovernmentwill take

appropriatemeasurestoaddressthegapsinthissphere.

10.5.1. Development of an e-commerce portalwith government supported logistics

providingnationaland internationalmarketaccess to the traditionalartisans

ofthestate.

10.5.2. TheexistingUPBusinessMartPortalwillbestrengthened&publicised.

10.5.3. Apermanentexhibitionandexpositioncentrewillbedeveloped inLucknow

andexpo-martswillbeestablishedinselectcitiesofthestate

10.5.4. TheUPExportPromotionCouncilwillbestrengthenedandwillplayakeyrole

inparticipationat internationaltradefairsaswellasorganising international

Buyer-SellerMeets(BSMs).

10.5.5. MarketingassistancewillbeprovidedtohandicraftandMSMEunits.UPTrade

PromotionAuthoritywillbestrengthenedtopromoteparticipationofartisans

and entrepreneurs, primarily in national and regional level exhibitions and

buyersellermeets.


Page27of36

10.6. GoodGovernance

Robust administrative machineries and institutions play an important role in the

successfulimplementationofgovernmentpolicies,schemes&programsandtowardsthis

end, theorganisational structureof thedepartmentwillbe strengthened and technical

capabilityoftheemployeeswillbeaugmented.

10.6.1. Self-certificationfacilitywillbeextendedtothenewmicroandsmallindustries

establishedintheStateonthepatternofthatprovidedintheStart-upscheme

ofGoI so as to eliminate anyhassle from inspections in thenascentstageof

industries.

10.6.2. GoUPwillmodernise25DistrictIndustriesandEnterprisePromotioncentres

over thenext 5 years through settingupofhelp desk for consultancy along

with development of Project Formulation Cell and Online Single Window

ClearanceCell.

10.7. Miscellaneous

10.7.1. Specialpromotionalprovisionsforweakersectionandwoman

10.7.1.1. UndertheMukhyaMantriYuvaSwarojgarYojna,certainproportion

ofbeneficiarieswillbeearmarkedforpersonsbelongingtoSC&ST

categoriesandwomen.

10.7.1.2. UndertheInterestSubsidyschemeforSmall&Mediumindustriesin

Poorvanchal, Bundelkhand and Madhyanchal areas of the State,

certainproportionofthebeneficiarieswillbeearmarkedforwomen.

10.7.2. SickIndustries

Owingtocompetitivenessissuesaswellasmanagementandtechnicalfactors,

MSMEsoftensufferfromsickness.Towardsthis,theschemeofDepartmentof

MSME, GoI relating to rehabilitation of sick units will be effectively

implemented in the State in coordination with private and public sector

banks.

11 SectoralapproachBenefittingfromsectorsofstrength

11.1 IT/ITeSindustryandITStartUps

Consideringthechangingbusinessscenario,GoUPaimstoreinforcethepositionofUttar

PradeshasanattractivedestinationfortheIT/ITeSindustryandgiveaspecialfocuson


Page28of36

flourishing start-ups & budding entrepreneurs in IT/ITeS sector. The strategy of the

GoUP intheIT/ITESsector istofacilitateallstagesofIT/ITeS industryencompassing

Start-ups /entrepreneurs, MSMEs (Micro, Small, and Medium Enterprises) and large

IT/ITeSindustrybyprovidingbestoftheincentiveswithconducivepolicyframework.

Towards this, the policy intends to provide various fiscal and non-fiscal benefits to

IT/ITeSunits.Fiscal incentives including interestsubsidyon loan,exemptionofstamp

duty onpurchase/lease of land, exemption onElectricityduty, reimbursement of the

cost incurred on quality certification, and reimbursement ofEPFwill be provided to

IT/ITeS units. Additional incentives in the form of reimbursement of lease /rental

charges and subsidy on power bills will be available to MSME IT/ITeS units and

incubators.

Special incentives will be provided to IT/ITeS mega units on case to case basis.

Incentives on case to case basis will also be provided to private infrastructure

developersestablishingITParkinTier-II&Tier-IIIcitiesinthestate.

IT/ITeSindustrywillbeexemptedfromthepurviewoftheUPPollutionControlActand

willalsobeexemptedfrominspectionsundervariouslabourrelatedacts.Permissionfor

24x7 operations and employment of women in all three shifts will be allowed and

IndustrialPowertariffwillbeapplicabletoallIT/ITeSunits.

ThestateGovernmentwillalsopromotestart-upcultureinIT/ITeSsector.Towardsthis,

GoUPwillprovidevariousincentivestoincubatorsandStart-upsaswellascreateaseed

fundfortheirpromotion.

11.2 ElectronicsManufacturing

Withrapidgrowthinmobileandtelecomindustry,ITandsoftwareindustry,Healthcare

industry,automobile industryetc.combinedwiththegrowthofmiddleclasspopulation,

risingdisposable incomesand increase inadoptionofadvancedtechnology,thedemand

of electronicsdevices is expected to create an electronicsmarketofUS$400billionby

2020inIndia.Thepolicyintendstoreflectthedeterminationofthestategovernmentto

cater to this huge domestic demand while aiming to become a global electronics

manufacturinghubbyencouragingelectronicsmanufacturing.

The Policy intends to incentivize the establishment of ESDM units in Electronic

manufacturingClusters(EMCs)/ESDMparks.Fiscal incentives includingCapitalSubsidy,

interestsubsidy,exemptionofstampduty,partialreimbursementofpatentfilingcostand

reimbursementofVAT/CSTwillbeprovidedtoentireareaofGreaterNoidaandYamuna


Page29of36

Expressway region by declaring this region as Electronics Manufacturing Zone in

additiontotheGreenfieldEMCs.

Considering the cluster/Park based approach of ESDM sector especially by foreign

investors, establishment of ESDM parks in Electronic Manufacturing Zone will be

promoted.Mega investments inESDMsectorwillbeprovided incentivesoncasetocase

basisbasedon their investmentsize.Fabunitswillbeprovidedcustomisedpackageon

case-to-case basis. The package will include various fiscal and non-fiscal incentives

includingrebateonlandrates,electricity,water,infrastructure,equitysharingetc.

11.3 Agro&FoodProcessing

TheHorticulture&FoodProcessingsectorinthestatehasimmensepotentialforcapital

investments,employmentgenerationandincreaseinruralincomeofthestate.UPholdsa

prominentposition intheagriculturalsector intermsoftotalproductionoffoodgrains,

horticulturalproduce,milkandmeat in India.Thisampleavailabilityofrawproduce in

addition to the huge market, low cost of production and human resource poses

tremendousscopeforestablishinghorticultureandfoodprocessingindustryinthestate.

Therefore,developingthestateintoafoodparkstateisaresolveoftheGoUP.

TheGoUPintendstoprovidevariousfacilitiesandincentivestopromotethissectorunder

MukhyaMantriKhadya PrasansakaranMission Yojana.TheGoUP intends to provide

interestfreeloantosmallscalefoodprocessingunitsfortheirestablishment/expansion/

modernization;developmentofcoldchain,valueadditionandprocessinginfrastructure;

establishmentofprimaryprocessingsectorandcollectioncentres in ruralareas; reefer

vehicles/mobile pre-cooling vans; uninterrupted power supply and reimbursement of

VAT/CST/GST to foodprocessingunits,creationof infrastructure facilities fordegree/

diploma/certificatescourses,foodprocessingskilldevelopmentprograms,etc.

GoUPalsointendstoprovideassistanceinpreparationofbankableprojects;researchand

quality development; market development and brand promotion; and promotion of

standardization.GoUP intends topromoteestablishmentofmega foodparks instateas

well as establish Food processing park in all the regions of the statewith packaging,

exportsandresearchfacilities.

11.4 Dairy

UttarPradeshisamongstthehighestmilkproducingstatesinthecountry.Thisinherent

advantage of the state offers immense potential to achieve sectoral depth in the dairy

sectorandthuspromotecapital investmentsandemploymentgeneration.Towardsthis,


Page30of36

theGoUP intends to create awareness of qualitymilk and dairy products in the state;

reduceperishabilityofmilkanddairyproducts;promotemarketcentricactivitiesindairy

sectorandspreadawarenessonmodernfunctionalitiesinthissector.

Thepolicyaimstopromoteexportofprocessedmilkanddairyproducts;promotevalue

addition inthestate;protectseasonalityofthedairysectorunits;exemptmandifeeson

dairy processors not utilising mandi facilities; and promote private investment in

infrastructure & industrialparkdevelopment.GoUP also intends tobring about amilk

revolutioninthestatetowardswhichaDairydevelopmentfundwillbecreated.Withthe

help ofNationalDairyDevelopmentBoard (NDDB), integratedmilk processing dairies

willbeestablishedineachgroupsoffourdistricts.

TheGoUPalsointendstosimplifyvariousprocessesresolvingissuesrelatedtoqualityof

dairyproductsandcreateanITenableddatabasewithanaimtoproviderelevantmarket

informationtotheindustriesinthestate.

11.5 New&RenewableEnergy

In view of the increasing energy demand in the state and the detrimental effect of

generating power from conventional energy sources on the environment, the GoUP

intends to layspecialemphasisonpowergeneration fromnew& renewablesourcesof

energy;andachievingpowerefficiency&savings.

Towards this,microhydro-electricpower generation throughnon-conventional energy

otherpowergenerationsectorslikebiogas,biomassandgarbagewillbepromoted.

The state has immense potential in the solar power sector. The GoUP will adopt a

communityandbeneficiarycentricapproachtopromotesolarenergy inthestate.GoUP

willpromoteGridBasedPowerProjectsinthestate.

11.6 Handloom&TextileIndustry

11.6.1 HandloomIndustry

TheHandloomindustryisoneofthetopemploymentgeneratingsectorsinthestate.To

promote the states traditional handloom and handicraft industry and lead it to its next phase

of growth, theGoUP intends tooperatevarious scholarship/ incentive schemes for the

marginalweaverstoenhance and sustaintheirartinhandloomandpowerloomweaving.

Thestategovernmentwillassistindevelopinginfrastructuralfacilitiesinthetextileparks

proposed under Scheme of Integrated Textile Parks (SITP) of Ministry of Textiles,

GovernmentofIndia.ForincreasingtheproductionofsilkintheState,GoUPwilldevelop


Page31of36

clusters for farming of sahtoot. Establishment of cocoon threading units will also be

supportedinthestate.

11.6.2 TextileIndustry

Textile industryplaysasignificantrole intheeconomyofUttarPradesh.Generatingthe

secondhighestemployment in thestate,afteragriculture, thesector is labour intensive

andoffersunlimitedpotentialtowardsdevelopmentofthestate.Currently,approximately

twothirdoftherawmaterialsrelatedtotextileindustryandtextileproduceconsumedin

Uttar Pradesh are procured from other states.TheGoUP is committed to promote the

traditional handloom & textile industry of the state and continuously strive towards

revivingthem.

Handloom, textileandsilk relatedunits involved in reeling,spinning,weaving,knitting,

dyeing, processing, garment production & packaging and other activities related to

technical textiles like industrial textile, furniture lining, firefighting equipment, bullet

proof jackets, parachutes, etc. will be provided incentives like stamp duty exemption,

rebateoncommercialtaxes,etc.Developmentofclustersand industrialestateswillalso

bepromoted inthissector.Textileunits inBundelkhand,PoorvanchalandMadhyanchal

willbeprovidedspecialincentives.Megaunitsintextilesectorwillbeprovidedincentives

oncasetocasebasis.

Toenhance theproductivityandemployabilityof theworkforce in the textile industry,

new technical & entrepreneurship training centres will be established and training

capabilitiesofexistingITIs,polytechnicanddegreecollegeswillbeaugmented.Towards

this,practicalandindustryrelevantcourseswillbeformulatedinconsultationwithlocal

industries and intellectuals. GoUP will organise as well assist handloom weavers for

participatinginfairsatvariousmetrocitiesoutsidethestateandthecountry,topromote

their produce, nationally and internationally, through a marketing promotion scheme.

PradhanMantriMudraYojanawillbeoptimallyutilised to fulfil the capital investment

requiredformarketingoftextileproduce.GoUPwillalsoworktowards linkingPradhan

MantriMudraYojanaforassistingfarmersproducingsilkcocoonwithworkingcapital.

11.7 Exportorientedunits

Exportsplayan importantrole in thestateseconomy influencing the levelofeconomic

growth,employmentand thebalanceofpayments.Thispolicyaims topromoteexports

from the state in linewith thevisionof Make in Indiaprogramof theGovernmentof

India.


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Towards making Uttar Pradesh an export hub, GoUP intends to create facilitating

infrastructuresacrossthestatelikemulti-modallogistichubs,specialisedindustrialzones

like SEZs and SIMZs. The GoUP will incentivise export oriented units by providing

marketingassistances,subsidyonexportcargosentbyairandsubsidyonfreightcharges

ongatewayport.GoUPwillensureoptimalutilisationofGovernmentofIndiaschemesto

encourageexportandrelatedactivitiesinthestate.

Thepolicy also intends to facilitate exporterswithmarket and regulatory requirement

information.

11.8 Tourism

Generatingemploymentfordiverserangeofcitizensinthestate,tourisminUttarPradesh

isamajorsourceofforeignexchangeearningsandenablerofinfrastructuredevelopment

and cultural exchange. With a mission to be the apex tourism state in the country,

inculcateentrepreneurshipatthegrassrootsandbetheleaderinpromotingsustainable&

inclusivedevelopmentthroughtourism,theGoUPintendstolayacomprehensivetourism

developmentframeworkofthestateforthelongterm.Throughtheframework,GoUPwill

identify, develop and market new and niche tourism products; upscale and expand

existing tourism and civic infrastructure;preserve and enhance the States artistic and

culturalheritage;andpromoteprivatesectorparticipationintourismsector.

Towardsdevelopmentoftourismsectorinthestate,GoUPintendstostrengthentourism

transport systems and address hotel room shortage at tourist destinations. The

governmentwillpromotereligious tourismandconserve theheritagesites in thestate.

Variousfiscalandnon-fiscal incentiveswillbeprovidedto investments inthetourism&

hotelsector.Specialemphasiswillalsobe laidondevelopmentof ProPoorTourism in

thestate leading to livelihood transformationof itscitizensandonskillupgradationof

women,youth,underprivileged,disadvantagedsectionsof thesociety& theworkforce

engaged in the sector.To ensure effective implementation of the strategies,GoUPwill

strengthen its institutions; adopt optimal usage of technology; and take initiatives for

establishingBrandUttarPradeshasatouristdestinationwhilereinforcingitsimageasa

safetouristfriendlydestination.

11.9 Film

TodevelopUttarPradesh as an important centre for filmproduction,GoUP intends to

createanamicableatmospheretofacilitatefilmshootingintheStateandensureallround

developmentofactivitiesrelatedtofilmproduction.


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Infrastructure forshootingand filmproduction likestudiosandprocessing labswillbe

developedintheState.TheStategovernmentwillhelpinsettingupofthefilmcitiesand

contribute in creation of ancillary infrastructure. The government intends to promote

ultra-moderntechnologiesincinemahallsofthestate.GoUPwillpromotemultiplexesby

providingvarious fiscal incentives.Closedor loss incurringcinemahallswillberevived

onpriority.Thegovernmentwillpromoteinstallationofcaptivepowerplantgeneratorby

thecinemahallowners.Theelectricitygeneratedbytheseplantswillbeexemptedfrom

electricityduty.

Fordevelopmentof film industry, it ispertinent to impartsuitable training to talented

artists and trained technicians. For this purpose, the State governmentwill coordinate

withGoIforestablishingaFilmandTelevisionInstitute inUttarPradesh.Privatesector

willalsobeencouragedtoopentraininginstitutesinthestate.

Thegovernment intendstocreateaFilmFundwhichwillbeutilizedondevelopmentof

infrastructure facilities for production of films/video films/documentary films and

regional films. Other Financial incentives for Film industry including exemption from

tradetax,concessiononentertainmenttaxandsubsidyonamountpaidaswagestothe

artists will be provided. Various other administrative support like single window

clearance, security arrangements for production units etc. will also be provided. Film

Bandhuwillensureavailabilityofallthefilmproductionrelatedfacilitiesunderasingle

roof.

12 Sustainable & Inclusive growth Ensuring clean & balanced

distributionofeconomicgrowth

TheGoUPrealisesthatexpandingthestateeconomycannotbeitssoleaim.Ithastoensurea

responsible & sustainable growth reaches the most vulnerable people of the society and

occursintheareaswheretheylive.Toachievethisobjectiveofparticipationingrowthbyall,

thepolicyintendstoadoptthefollowingstrategies-

12.1 Sustainablegrowth

GoUP is in full agreementwith the principle of sustainable growth and is conscious

aboutitsresponsibilityofensuringacleanandgreenenvironment.TheGovernmentwill

ensure to bothminimize thedetrimental impactof industrialisation and enhance the

positivecontributiontotheenvironment.Inlightofthis,thepolicyintendstoincentivise

installation of Effluent Treatment Plants and Rain Water Harvesting. The industrial

developmentauthoritieswillstrive to installCommonEffluentTreatmentplants in its


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industrial estates/ parks/ areas. The Government will also encourage greater

complianceof the industrieswith the environmental standards and facilitate them in

adoptionoftechnologiesreducingairandwaterpollution.

Towardsthis,thepolicyintendstoprovidethefollowingincentives-

12.1.1 EffluentTreatmentPlant(ETP)andRainwaterharvestingwillbeencouraged

12.1.2 Need based financial assistance to be provided for development of Green

IndustrialEstate

12.1.3 Needbased financialassistance tobeprovided forshiftingchemicalbasedunits

fromresidentialzonetoindustrialzone

12.2 BalancedRegionalgrowth

Various factors including lackof enabling infrastructure, growth centres and regional

factorswhichcannotbealteredhasledtoanimbalancedgrowthinthestateespecially

inBundelkhand,MadhyanchalandPoorvanchalregions.Thepolicyemphasizesaneed

to ensure balanced regional development in Uttar Pradesh by means of facilitating

linkages, fiscal incentives and leveraging regional advantages in Bundelkhand,

Madhyanchal and Poorvanchal. The Government will strive to improve quality and

access to education and skill development programs in these areas, develop road

infrastructure & power connectivity and leverage information technology at different

levelsintheseareas.Newindustrialparksandareaswillalsobecreatedintheseareas.

TheGovernmentalsorealisesthatthereareareasinthestateatthedistrictlevelwhich

lacks anymajor industrial activity. Topromote and initiate industrialisation in these

areas,thepolicyintendstoincentiviseinvestmentsindistrictswithnomajorindustries.

12.3 PromotingSC/ST/WomenandDifferentlyAbledentrepreneurs

GoUP intends to promote industrial unitswithminimum 75% ownership of SC/ ST/

Women/ Differently abled entrepreneurs by providing additional benefits on the

followingincentivesprovidedunderthepolicy

12.3.1 20%exemptionfromstampdutywiththemaximumlimitof100%

12.3.2 2.5%reimbursementinCapitalinterestwiththemaximumlimitof7.5%

12.3.3 2.5%reimbursementon Infrastructure interestsubsidywiththemaximum limit

of7.5%

12.3.4 10%EPFreimbursementwiththemaximumlimitof70%

12.4 PromotingemploymentforSC/ST/Women/DifferentlyAbledandBPLfamilies

12.4.1 Units with more than 200 workers in Paschimanchal UP or more than 100

workers in Bundelkhand, Poorvanchal and Madhyanchal will be provided


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additional incentives in the form of [10%] reimbursement of net VAT/CST/

amountdepositedinStatesaccountvis-a-visshareofthestateunderGSTineach

ofthefollowingcases-

a. Industrialunitsemployingminimum25%workersfromBPLfamilies

b. Industrialunitsemployingminimum40%femaleworkers

c. Industrial units employing minimum 25% workers belonging to SC/ST

category

12.4.2 Industrial units providing employment to differently abled workers will be

providedpayrollassistanceofRs.500permonthforeachsuchworker.

13 InvestmentPromotionandmarketingBrandUttarPradesh

For the Industrial Investment & Employment Promotion Policy ofUttar Pradesh 2017 to be

successful,theGoUPbelievesacomplementaryframeworkofinvestmentpromotionisessential

withanoverarchingstrategyofbuildingasafe,secure,corruptionfree,industryfriendlymost

preferredinvestmentdestinationimageofUttarPradesh.

Towards this, the State Investment Promotion Board (SIPB)will institutionalise investment

promotion activities in the state. A targeted approach to reach prospective investors and

communicate investment opportunities in the state through various channels will be

undertaken.GoUPwill participate in and host various national and international trade fairs,

eventsandconferenceswhichwillactasanidealplatformforB2Ginteractionsandshowcasing

sectoral strengths & conducive policy framework ofUttar Pradesh.Global Investors Summit

(GIS)willbeorganisedwithanobjectivetoprojectUttarPradeshasaGlobalInvestmenthub.

GoUPwillalsolayadequateemphasisonpromotionoflocallyspecializedbusinessesatthelevel

ofeachdistrictofthestatelikechinaclayutensilsofBulandsahar,sportsitemsofMeerut,glass

work of Firozabad, locks of Aligarh, knives of Rampur, brass work of Moradabad, mint of

Sambhal, furnitureofBareilly,perfumeofKannauj, shoes andpethaofAgra, leatherworkof

Kanpur,carpetofBhadohi,sareesofVaranasi,sugarofBalrampur,jaggeryofMuzaffarnagarand

chikanworkofLucknowetc.

14 Domestic&GlobalEnvironment Gainingfromexternalfactorsand

beingresponsivetothem

Theworldtoday ishighlyunpredictableanddynamic.Variousdisruptions,competitionsand

changingpreferencesposesbothpositiveandnegativeimpactonthestate.Thepolicyintends

toplaceaframeworktobothgainfromthesecrosswindsaswellberesponsivetowardsthem.


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14.1 Gainingfromexternalfactors

The Government will align its priorities and focus areas with the national and

internationaltrends.TheGovernmentwillstrivetowardsmaximisingbenefitsfromthe

variousbilateralandmulti-lateraltradeagreementsmadebytheGovernmentofIndia.It

will also ensure maximum utilisation of Government of India funds to develop and

upgradetheindustrialandeconomicinfrastructureofthestate.

14.2 Responsivetochangingenvironment

TheStateGovernmentwillensurethattheimplementationoftheindustrialpolicymeet

its stipulated objectives. Recognizing the increasingly dynamic nature of the world

economywithconstantneedforfrequentandappropriateresponse,acoursecorrection

mechanism would be put in place. The policy envisages building a response system

whereincontinuousfeedbackfromindustries,industrialbodies&otherstakeholderare

consideredforaquickresponsetotherequiredpolicychanges.

Note: The MSME and the sectoral policies mentioned in this policy are summary of the

intentions of the government.The detailed policieswill bemade available separately by the

concerneddepartment.

industrial policy uttar pradesh - udyog...

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