Uttar Pradesh Overhauls Incentive Policy to Boost Foreign Investment

Uttar Pradesh's government has expanded its incentive policy, now allowing foreign firms to benefit from equity and loans. This change, led by Chief Minister Yogi Adityanath, aims to attract further foreign investment by providing land, capital subsidies, and tax benefits for investments over Rs 100 crore.

Uttar Pradesh has revamped its incentive policy to attract more foreign investment by allowing benefits for investments brought through both equity and loans. This policy shift was decided during a cabinet meeting led by Chief Minister Yogi Adityanath on Monday.

Previously, incentives were exclusive to equity investments, but the newly named 'Foreign Direct Investment, Foreign Capital Investment and Fortune Global 500 and Fortune India 500 Investment Promotion Policy 2023' extends benefits to various forms of investment, including loans. The move is expected to significantly increase foreign investment in the state, as per an official statement.

UP Finance Minister Suresh Khanna clarified that while the policy has been amended, the minimum eligibility investment remains at Rs 100 crore. The policy now allows companies to utilize different funding sources including preference shares, debentures, and debt securities, alongside equity for business expansion, with incentives like land subsidies and tax benefits.

(With inputs from agencies.)