Even as markets worldwide are reeling from the effects of the Wuhan Coronavirus pandemic, over twenty foreign companies are eyeing to invest over Rs 9000 crores in Uttar Pradesh. It was also reported that industrialists and electronic makers from Korea were seeking to move investments out of China and invest in Uttar Pradesh.
Smartphone major Samsung is all set to relocate its mobile and IT display production unit from China to Uttar Pradesh and invest Rs 4,825 crore in the state.
According to the reports, the new production plant by Samsung will be the first high-technique project, which is being set up in India after relocating from China. The new project is likely to generate 1,500 direct employment and thousands of indirect jobs.
On Friday, the UP government’s cabinet chaired by Chief Minister Yogi Adityanath approved special incentives to Samsung Display Noida Private Limited for setting up a manufacturing unit of mobile and IT display products in Noida.
“The unit intends to invest Rs 4,825 crore. It could be made possible by the sustained efforts of the UP government to create an eco-system in NCR in sync with the intent of the Centre to make an export hub in view of the ever-increasing demand of mobile and other gadgets in the country and abroad,” the Uttar Pradesh spokesperson said.
Samsung will get exemptions, central govt incentives
Under the state government’s “Electronics Manufacturing Policy 2017”, the South Korean telecommunication giant will get an exemption from stamp duty on the transfer of land. The state government will also make financial provision of Rs 250 crore for this project for the next five years, the official said.
Samsung will also receive a financial incentive to the tune of Rs 460 crore under the Centre’s Scheme for Promotion of Manufacturing Electronic Components and Semiconductors (SPECS).
The project will provide Uttar Pradesh with a global identity of an export hub and will help the state receiving more foreign direct investment (FDI).
In 2018, Samsung had built the world’s largest mobile phone manufacturing facility in Noida, Uttar Pradesh. The new facility had the capacity of shelling out 120 million mobile phones a year.
Uttar Pradesh turning out India’s manufacturing hub
Even as markets worldwide are reeling from the effects of the Wuhan Coronavirus pandemic, over twenty foreign companies are eyeing to invest over Rs 9000 crores in Uttar Pradesh.
According to a government spokesperson, 57 domestic and foreign companies have signed agreements for investments worth Rs 46,501 crores with the state government.
Out of these companies, 28 foreign companies have signed contracts worth Rs 9357 crores with the Yogi government. 29 domestic companies have made agreements worth Rs 37,441 crore.
It was also reported that industrialists and electronic makers from Korea were seeking to move investments out of China and invest in Uttar Pradesh.
The Uttar Pradesh government led by Chief Minister Yogi Adityanath has been putting in all efforts to attract these investors to the state, which would help in reviving the pandemic-hit economy. UP Chief Minister Yogi Adityanath has held video-conferencing with over 100 American companies recently in a webinar after these companies expressed their interest in India.
UP government has also started reformulating its various policies to suit these investors who are contemplating opting out of China in the wake of the coronavirus outbreak. Ever since Yogi Adityanath took the reigns of the state, the government has been pitching itself as an attractive investment destination in the country.