UP Policy Overview

1. Industrial Policy
2. Solar Policy
3. Data Center Policy
4. Green hydrogen Policy
5. EV Policy

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UP Industrial Policy

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 UP Industrial Investment and Employment
Promotion Policy 2022

Setting up Private Industrial Park

Infrastructure Assistance

• Land Bank: Government land on lease at 1% of circle rate for long term up to 50 years.
• Nivesh Mitra: Provision for land allotment application through single window portal of the state.

Fiscal Assistance

Promoting Private Industrial Park

Bundelkhand & Purvanchal (20 acres) | Madhyanchal & 100+ acres in UP
Paschimachal (30 acres)
Capital Subsidy 25% (except land). 25% (except land)
40 Crs in Madhyachal or Purvanchal
Limit 80 Crs
45 Crs in Bundelkhand or Purvanchal
Stamp Duty exemptions Yes Yes
External Infrastructure
No Yes (by state govt.)
support

Project completion specifications

• Park should be completed in 5 years

• Consortium of developers allowed

*Capital subsidy will be given in six (6) installments

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 UP Industrial Investment and Employment
Promotion Policy 2022

Fiscal Incentives (1/2)

Investment categorization

Eligible Investment Period

Category Investment Period Capital Investment
Large 4 years Above 50 Cr but below 200 Cr
Mega 5 years Above 200 Cr but below 500 Cr
Super Mega 7 years Above 500 Cr but below 5000 Cr
Ultra Mega 9 years Above 5000 Cr

Eligible Capital Investment (ECI)

• Land: Max. of 25% of total capital investment will be taken into account
• Building: Max. of 10% of total capital investment will be taken into account
• Plant and Machinery: 40% of cost of old plant and machinery will be eligible
• Intangible Assets: Max. of 5% of total capital investment

75% of captive power generation within the premises of the Industrial Undertaking must be self-use.

Stamp Duty Exemption

• 100% stamp duty exemption in Bundelkhand & Purvanchal.

• 75% stamp duty exemption in Madhyanchal & Paschimachal
• 50% stamp duty exemption in **GB Nagar & Ghaziabad districts

** GB Nagar include NOIDA and Greater NOIDA

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 UP Industrial Investment and Employment
Promotion Policy 2022

Fiscal Incentives (2/2)

Investment Promotion Subsidy

Investment Promotion Subsidy Option

100% Net SGST
Options Capital Subsidy
Reimbursement
Madhyanchal Subsidy Annual
GB Nagar & Bundelkhand Annual Reimbursement
+ Installment Ceiling with
Ghaziabad + Purvanchal Ceiling Period
Paschimachal (annually) boosters
Large 10% of ECI 12% of ECI 15% of ECI 10 years 5 Cr NA 5 years
Mega 18% of ECI 20% of ECI 22% of ECI 12 years 10 Cr 15 Cr 10 years
Super
20% of ECI 22% of ECI 25% of ECI 15 years 85 Cr 125 Cr 12 years
Mega
Ultra
22% of ECI 25% of ECI 30% of ECI 20 years 150 Cr 210 Cr 15 years
Mega

Capital Subsidy Boosters

• Employment Booster: Max. of 4% of ECI

• Export Booster: Max of 4% of ECI
• Ecosystem Booster: Max. of 4% of ECI

** GB Nagar include NOIDA and Greater NOIDA

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 UP Industrial Investment and Employment
Promotion Policy 2022

Ease of doing Business

Simplification of Process

• Auto renewal has been introduced for more than 17 renewals. In addition, 7 more license renewals have
been abolished as part of Ease of Doing Business programme.

Industrial Security

• Dedicated police station will be developed at industrial clusters/areas in regions like Noida, Kanpur,
Gorakhpur, Bundelkhand and Purvanchal.

• Integrated police cum fire station will also be established in major industrial clusters.

Other Enablers

• 13 commercial courts in major districts to address commercial cases

*Capital subsidy will be given in six (6) installments

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UP Solar Policy 2022

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 UP Solar Policy 2022 Overview

Draft Actual
Target upto 16,000 MW Solar Power Projects 22,000 MW Solar Power Projects
2026-27 • Utility/Grid scale/Parks – 10,000 MW • Utility/Grid scale/Parks – 14,000 MW
• Solar Rooftop – 4,000 MW • Solar Rooftop – 6,000 MW
• Distributed solar generation – 2,000 MW • Distributed solar generation – 2,000 MW

Promotions Rooftop, off grid, Utility scale, solar park, solar with storage Rooftop, off grid, Utility scale, solar park, solar with
storage
Incentives
Utility Grid • Cost for construction of maximum transmission line • Cost for construction of maximum transmission
length line length
Power 5 MW to 10 MW – 10 km, >10 MW to 50 MW – 15 km, 5 MW to 10 MW – 10 km, >10 MW to 50 MW – 15
Projects of >50 MW – 20 km km, >50 MW – 20 km
capacity 5 (Set up in Bundelkhand and Purvanchal region) (Set up in Bundelkhand and Purvanchal region
MW and • > 5 MW - capital Interest subsidy to the extent 5% p.a. for • Solar parks set up with storage systems of 5
above 5 years subject to annual ceiling of 50 Lakhs MW or more capacity will be provided subsidy
at the rate of Rs 2.5 crore per MW.

Open • Exemption on wheeling /transmission charges on

Intrastate Sale of Power (50% in case of third party or in
Access case of Captive use and 100% for sale to UPPCL).
above 1 MW
• Cross subsidy surcharge and wheeling /Transmission
Same
charges will be exempted 100 % for Intrastate
Transmission system on Interstate sale of solar power.
• Metering for sale of solar power shall be done at
STU/Distribution licensee substation end

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 UP Solar Policy 2022 Overview

Development of • Government land will be available for 5 acres per MW

solar parks • Connectivity to the nearest grid substation subject to
technical feasibility.
• 100% Third party sale of power under open access Same
above 1 MW.
• Govt land on lease at Rs 15000 per acre per year on
non-transferable basis

Other incentives • 100% exemption on Stamp duty on the land

and facilities • Land banks
• Facilitation of private land (including non-agricultural and
exemption from ceiling)
• Energy banking (for maximum of 25 yrs)
• Electricity duty exempted for 10 yrs for sale to Distribution Same
licensee, captive/Group captive consumption and third-
party sale in respect of all solar projects
• Incentives from Government of India are valid
• Exemption from obtaining Environmental clearance
• Deemed consent for grid connected solar PV projects

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UP Data Center Policy

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 Key highlights

Target in 5 years 20,000 crores; 250 MW, 3 private data centre parks

Promotions Green Data Centre Parks, cloud services for e-governance

Extra financial incentives Purvanchal and Bundelkhand

Nodal Agency Department of IT and Electronics

Definitions Data center park: >40 MW

Data centre unit: space within a building (<40 MW)
Interest: 60% of annual interest for 7 years
Limits per park: 10 crores/years and 50 crores total
Land: Madhyanchal and Paschimanchal: 25% subsidy on purchase/lease
Bundelkhand and Puvanchal: 50% subsidy on purchase/lease
Limits: 7.5% of total project costs or 75 crores, whichever is less
Disbursed post commercialisation
Financial incentives for Only 1st 3 DC parks
data centre parks Stamp duty: 100% of stamp duty exemption on 1st transaction, 50% on 2nd
Against Bank Guarantee – released upon start of operations
Electricity: Dual line: One by developer, one by Energy department
50% of on intrastate wheeling/transmission chargers for intrastate power sale
for 25 years
100% of on intrastate wheeling/transmission chargers for interstate power sale
for 25 years

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 Key highlights

Capital subsidy: 7% up to 20 crores on fixed capital investment excluding land a building;

disbursed within 10 years with annual ceiling of 2 crores

Financial incentives for Land - Same as park

data centre units
Stamp duty - Same as park

Electricity – 100% duty exemption for 10 years post start of operations

Wheeling/Transmission charges – Same as park

Mission critical infra

Water supply
No sub-leasing transfer charges
Single clearance window
Parking only 5% of area
Chillers allowed on roof subject to AAI clearance
Other incentives
Reduced restrictions on boundary wall
No restriction of height of the floor
Open access allowed
Gradual reduction in cross subsidy charge
Deemed distribution licensee / franchisee status
Banking allowed as per regulations – fixed for 25 years

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UP Green Hydrogen Policy Draft 2022

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 UP Green Hydrogen Policy Draft

Objectives and Targets

• Two major hydrogen demand centers in the state of UP – Nitrogenous (N-) Fertilizers and Refinery
• 100 percent green hydrogen/ammonia consuming state by 2035.
• Reduce green hydrogen cost to 2.0 USD/Kg and make efforts to decline it further to 1 USD/Kg.
• Achieve 20 percent green hydrogen blending in total hydrogen consumption of the state by 2028

Policy Pillars

Emerging
Manufacturing Hub

R&D Innovation

Providing Fiscal
Incentives

State level Committee

Validity of policy: 5 years 14

 Fiscal Incentives (1/2)

Land and Water Resources Incentives

Exemptions
Land Tax 100%
Land use conversion charges 100%
Stamp Duty 100%
Water consumption charges 50%

Infrastructure Incentives

• 30% one-time grant support for technology acquisition subject to a maximum of 5 crores for R&D centers
and industries.
• Capital Expenditure (CAPEX) subsidy shall apply for electrolyzer deployment in the state.
• The subsidy shall only apply for electrolyzers not the whole system and the minimum capacity to avail it
shall be higher than 50 MW
~50% of the
total capex

Year 2023 2024 2025 2026 2027 2028

Subsidy 60% 55% 45% 35% 20% 0%

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 Fiscal Incentives (2/2)

Operational Incentives

Central government incentives for green hydrogen/ammonia production shall apply to the state. The policy shall
provide the following incentives to reduce the operating cost further and make green hydrogen/ammonia more
competitive:

• 100 percent reimbursement of SGST for green hydrogen/ammonia production

• The exemptions provided under UP’s Solar Policy 2022 shall apply to green hydrogen projects. The initiatives
mentioned below shall apply in addition to the ones provided in the solar policy.

Charges Exemptions
Wheeling 50%
Intra-state transmission 50%
Cross Subsidy 100%
Distribution 100%

Other Incentives
Provide 50 percent reimbursement of employer’s contribution to Employees’ Provident Fund and Employees’ State
Insurance in the form of employment generation subsidy

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UP EV Policy 2022 Highlights

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 Battery Manufacturing: Fiscal Incentives Overview

Integrated / Ultra
Description Mega Project Large Project MSME Project
Mega Project
Investment are eligible if
60 months post announcement of policy
incurred before
as per classification
Minimum Investment ₹1,500 cr. and above ₹300 cr. and above Below ₹300 cr.
in MSMED Act ’20
Max land or building cost
10%
as % of fixed capacity inv.
Gross Capacity Utilisation • GCM = Minimum of (75%, Peak capacity utilisation of the year) / 75%
Multiple (GCM) • If peak capacity utilization <= 10% of installed capacity, GCM = 0
Capital Subsidy (%)
30% 20% 18% 10%
multiplied by GCM
Upper limit on capital
₹ 1,000 cr. ₹ 500 cr. ₹ 90 cr. ₹ 5 cr.
subsidy per location
Capital subsidy
Annually for 20 yrs Annually for 10 yrs Annually for 2 yrs
disbursement
• Total capital subsidy disbursement is limited to ₹ 50 cr. annually.
Limit on capital subsidy
• If the total subsidy could not be disbursed within the maximum period, the subsidy period
disbursement
will be extended further maximum up to 10 years additionally
Stamp Duty
100% Depends on region
Reimbursement
Max Subsidy as % of fixed
100%
capital investment

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 Illustration of Fiscal Incentives

Description Values
Will be classified as
Ultra Mega Project
Fixed Capital Investment, FCI (₹, cr) 2,000

Peak capacity utilisation of plant 60%

Calculation based
on formula of GCM
Gross Capacity Utilisation Multiple 0.8

Capital Subsidy (%) 24% (30%*0.8) Assumptions

• land cost is 10% of FCI
Total capital subsidy disbursement (₹, cr) 480 in 20 years • stamp duty is 7% of land cost

Capital subsidy disbursement in year 1 (₹, cr) 24

Stamp Duty Reimbursement (₹, cr) 14

Disbursed post commencement
of commercial production

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 Battery Manufacturing – Non-Fiscal Incentives

Description Incentives
• Common facilities for design, prototyping, and testing
Promote EV Clusters • State govt. shall ensure external infrastructure such as
roads, railways, water etc.
• Higher subsidies shall be provided to premium investments in
Impetus on battery manufacturing battery manufacturing
• State govt. shall encourage the OEMs to develop R&D and
Tech Assistance testing facilities for EV/EV battery.
• State govt. shall prepare a shelf of land bank including red
Land Bank category land in consultation with development authorities.
• Time bound single window online clearances / NOCs /
Single Window Clearance Approvals through Nivesh Mitra

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 Charging Infrastructure – Fiscal Incentives
Overview

Description Charging Stations Swapping Stations

Capex investment are eligible for
60 months post announcement of policy
subsidy if incurred before

Minimum Investment (excl. land cost) ₹25 lakhs ₹ 15 lakhs

Capital Subsidy (%) 20% of fixed capital investment*

Upper limit on capital subsidy ₹ 10 lakhs per location ₹ 5 lakhs per location

Eligible locations for subsidy First 2,000 locations in UP First 1,000 locations in UP

Incentive Disbursement Lumpsum amount post commencing of commercial operations

Max. locations eligible for subsidy for

100
any individual organization

*Definition of Fixed Capital Investment

“Fixed Capital Investment for service unit” means investment made in building, civil works, charger,
battery equipment, utilities, tools and other such assets (excluding land cost) as are required to
provide battery charging/ swapping service, within eligible investment period. The cost of building
and civil works shall not exceed more than 10% of fixed capital investment.

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 Illustration of Fiscal Incentives

Description Values

Fixed Capital Investment in one location, FCI (₹, lakhs) 60

20% of FCI
Capital Subsidy submitted (₹, lakhs) 12

Maximum capital subsidy that can be availed (₹, lakhs) 10

Total Capital Subsidy reimbursed (₹, lakhs) 10

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 Charging Infrastructure – Non-Fiscal Incentives
Description
Tariff for EV Charging
Land for charging stations
Parking/EV Charging Space
Electricity Connections
Open Access
Facilitation & Communication
Incentives
• Public Charging Station (LT) - ₹ 7.7 /unit
• Public Charging Station (HT) - ₹ 7.3 / unit
• Lease for 10 years
• Revenue share model: ₹1 / kwh
• Short term – Local authorities identify public parking spaces
and reserve for EV charging
• Long term - Urban Local Bodies to take up parking policy
reforms
Discoms shall ensure fast-track electricity connections to EV
charging/swapping service providers
Allowed for contract cumulative demand of 1 MW and above
Single platform for incentives and necessary approvals /
NOCs / clearances
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Thank you