200 pc financial aid to new investment of Rs 100 cr

Lucknow, May 23 (UNI) In a bid to prevent industrial houses migrating to Uttaranchal in view of financial sops, Uttar Pradesh government today announced 200 per cent financial aid to new industrial investment of over Rs 100 crore in the state.

The new financial package was approved by the UP cabinet meeting here, chaired by the state Chief Minister Mulayam Singh Yadav.

UP opted the scheme after the Centre did not approve the special financial package, even as the same was granted to Uttaranchal.

On May 11, UP Development Council (UPDC) had also recommended for such financial package to attract new investments.

Under the new proposal, companies investing Rs 100 crore for new units would get 100 per cent interest free loan on trade tax, which will be payable from 7 years of operation and be completed in 14 years. But, the amount would not exceed the total capital investment.

These new units would not pay anything other that land registration, while they would be eligible for transport subsidy for importing raw material except for coal and gas for 15 years.

UP would also provide 10 per cent capital investment to investors for developing infrastructure in the area.

Industrial Development Commissioner (IDC) Atul Gupta said after the new proposal, UP might go ahead with the Rs 33,000 crore investment proposals received by the government during the last two years.

He said the state government had received an investment to the tune of Rs 7,000 crore in the sugar sector, while Rs 2,300 crore had been invested in other sectors.

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