Shri Durga Shanker Mishra


Highlighting the significant reforms being undertaken by the state government, Shri Durga Shanker Mishra, IAS, Chief Secretary, Government of Uttar Pradesh shares exclusive insights with Ritika Srivastava of Elets News Network (ENN) about the development & investment opportunities in Uttar Pradesh. Edited excerpts

Kindly shed light on the focal policy interventions and reforms instituted by the State Government to facilitate industrial evolution and attract investments in UP.

The Government of Uttar Pradesh has taken various reformative steps in creating a holistic ecosystem for industrial development, through policy driven governance by formulating 27 policies to attract investments across different sectors including IT/ ITeS, Data Centre, ESDM, Defence & Aerospace, Electric Vehicles, Warehousing & Logistics, Tourism, Textile, MSME etc.

The umbrella Industrial Investments & Employment Promotion Policy, 2022 provides attractive benefits viz Capital Subsidy upto 42% or 100% Net SGST refund or 50% top up on PLI subsidy, Stamp Duty waiver, etc. to manufacturing units setting up businesses in UP. So far, we have received 41 applications worth investments of approx. ₹1.8 Lakh crores of which we have sanctioned (Letter of Comfort) to six applicants investing around `3,500 crores.

In a first-ever initiative of its kind in India, the Government of Uttar Pradesh in its attempt to entice global investments has launched a dedicated policy to incentivise FDI, Fortune Global 500 & Fortune India 500 companies’ investing in UP. Under the New FDI Policy 2023, we have received 6 applications worth `2,700 crores of which we have granted front-end land subsidy to 02 applicants.

How successful have investor outreach programs and inaugural sessions like ‘Ground Breaking Ceremony’ been in promoting UP as an investment destination?

After taking various initiatives, the State Government organised the ‘Uttar Pradesh Investor Summit’ in February 2018 in Lucknow. It garnered investment intents worth `4.28 lakh crores. As a result of active facilitation and handholding support to investors, the first three Ground-Breaking Ceremonies (GBC) ensured the following results:

  • 1st GBC – 81 projects worth around `61,000 crores investment in 2018
  • 2nd GBC – 250+ projects worth `65,000 crores investment in 2019
  • 3rd GBC – 1400+ projects worth `80,000 crores investment in 2022

As per the status of Industrial Entrepreneur Memorandum (IEM) Part2 filed between 2017-22, 227 projects with investments worth ₹43,700 crores have been implemented (DPIIT, March 2023). Further, investments worth approx. `95,500 crores was implemented through other land allotments by Industrial Development Authorities, and 5.20 lakh MSME units have been established in UP between FY17 to FY22, investing around `67,600 crores. These include certain marquee international investors who have expanded their business plans in Uttar Pradesh in this time frame. This includes Samsung (S.Korea), Microsoft (USA), Uber (USA), Pepsico (USA), Fairfox (USA), Hindustan Unilever (UK), AB Mauri (UK), Air Liquide (France), Sify (USA), STT Global (Singapore), NTT (Japan), Lulu Group (UAE) etc.

Thereafter, Uttar Pradesh Global Investor Summit (GIS) was held in February 2023 in Lucknow, which led to the signing of investment intents worth `33.5 lakh crores. As a run-up to the

Thereafter, Uttar Pradesh Global Investor Summit (GIS) was held in February 2023 in Lucknow, which led to the signing of investment intents worth `33.5 lakh crores. As a run-up to the Global Investors Summit, international roadshows were organised in 21 cities in 16 countries as well as domestic roadshows were organised at 8 different locations. Bringing together the global investors fraternity, policymakers, corporate leaders, business delegations, academia, think tanks, and political & government leadership at this 3-day long Uttar Pradesh Global Investors’ Summit, 2023 held between 10-12 February 2023 in Lucknow, reflects the commitment and hard- work of the State Government. With a footfall of 10,000+ delegates at the Summit, the UPGIS-2023 was like an Investor’s Mahakumbh organised by the State Government in Lucknow.

The State Government engaged with 21 countries to partner for this grand event, of which the UAE, Netherlands, The United Kingdom, Denmark, Singapore, Japan, Australia, South Korea, Italy, and Mauritius partnered for the Global Investors Summit. Before UPGIS-2023, the state government conducted international investor meets in 21 cities of 16 countries, including the United Arab Emirates, the United States of America, Canada, the United Kingdom, Germany, Belgium, Sweden, Netherlands, France, Mexico, Brazil, Argentina, Japan, South Korea, Singapore and Australia.

Apart from that, many national & international conclaves/sessions are being organised on a large scale to reach out to the investors. To drive investors’ confidence and showcase the government’s commitment, the State participated in major national and international events such as the Dubai Expo and World Economic Forum (WEF) at Davos, Switzerland.

What are the major achievements in terms of new industrial investments and employment generation in the State over the last few years? Which sectors have witnessed the highest inflows?

During and post UPGIS-2023, to date over 33,000 MoUs have been signed with Investment Intents worth around `37 lakh crores. Around 1.1 crore Jobs are to be created through these investments. Renewable Energy, Electronic Manufacturing, Industrial Parks, and Higher Education Sectors collectively claim nearly 50% of the total investments proposed.

Western Uttar Pradesh has got the maximum intents with nearly 45% while Eastern Uttar Pradesh has got nearly 30% of the total investment intents. Notably, Gautam Buddha Nagar is the leading district for investments with 27% of the total intents and Agra is the runner-up with nearly 8% of it.

What initiatives have been taken to enhance the Ease of Doing Business and improve infrastructure availability across the State?

Over the past few years, Uttar Pradesh’s industrial landscape has transformed significantly. The state has aggressively overcome the problems of law and order, power supply, and red-tapism that plagued the State before the current government took over. It is noteworthy that the state government has ensured an equitable flow of investment into various districts to bring about holistic growth and development for all citizens of the state. It is worth mentioning that in the LEADS 2022 Survey, six states earned the prestigious ‘Achievers’ category and in the 2023 LEADS 2023 Survey, four States within the landlocked group successfully secured this recognition. Notably, Uttar Pradesh joined the ranks of Achievers this year.

Uttar Pradesh has consistently secured ‘Top Achiever’ status on the ‘Ease of Doing Business’ ranking in India. One of the major reforms done by the State Government was the implementation of the country’s largest digital single window portal – ‘Nivesh Mitra’, providing around 450+ online services to entrepreneurs. It is one of the first Portals that has been integrated into the National Single Window platform.

The State Government has built a comprehensive framework for investor facilitation. To ease out the process of MoU Signing and further give proper handholding support to the investors, an online Investor Relationship Management Portal is developed known as ‘Nivesh Sarathi’, which is a one-stop solution for investors to have a seamless response to their queries, redressing grievances, filling investment intents, seeking facilitation and monitoring of their investment projects.

This includes hiring 100 Udyami Mitras as dedicated Relationship Managers for hand-holding investors. Mukhya Mantri Udyami Mitra Scheme is a flagship scheme of the government to reinforce the investment attractiveness of Uttar Pradesh amongst the investor community and create employment opportunities for an inclusive development of the State. “Nivesh Sarathi” has changed the entire way of investor engagement in the State.

How is the State Government working to develop sector-specific industrial corridors and land banks in potential growth centres across UP?
Several industrial projects are being planned in the state & the Uttar Pradesh Government is rapidly developing specikc industrial corridors. Out of the two Defence Industrial Corridors announced in the country, one is coming up in Uttar Pradesh. In these years, out of the 6- nodes within UP, viz. Agra, Aligarh, Kanpur, Lucknow, Jhansi & Chitrakoot, the Aligarh node has been inaugurated, while land allotment is in progress in other nodes. Key allotments include Brahmos in Lucknow, Bharat Dynamics in Jhansi, etc.

UP has set up sector-specific parks; for instance, the state’s first Medical Device Park has been launched along the Yamuna Expressway. Similarly, Film City, Toy Park, Apparel Park, Handicraft Park, and Logistic Hub have also come up alongside the Yamuna Expressway. Other projects include IIT GNL in Greater Noida, Mega Food Park in Bareilly, Trans-Ganga City in Unnao, Plastic Park, and Garment Park in Gorakhpur. Further Several Flatted Factory Complexes have been planned.

UP hosts India’s largest railway network (more than 16,000 Km) and is home to a considerable catchment area of the Western Dedicated Freight Corridor (WDFC) – 8.5% and Eastern Dedicated Freight Corridor (EDFC) – 57%. Both the corridors intersect in UP at Dadri (G.Noida). Further, the country’s first inland waterway, connecting major eastern exporting hubs viz, Prayagraj and Varanasi to Haldia Port has come up. Of this, the tract between Varanasi to Haldia (1,100 Km) is already operational.

A Multi-Modal Terminal at Varanasi and various floating terminals are operational along the NW-1 at Ghazipur / Rajghat, Ramnagar (Varanasi), and Prayagraj. Multi-Modal Logistics Hub (MMLH) at Dadri and Multi-Modal Transport Hub (MMTH) at Boraki are being developed. In a bid to accelerate infrastructure and industrial development in the State, the Government has formed the Bundelkhand Industrial Development Authority (BIDA), under which there is a plan to develop industrial, commercial, and residential townships in the Bundelkhand region on the lines of Noida and Greater Noida.

What support mechanisms like incentives, specialised clusters, and PPP projects have been rolled out to boost MSMEs in the State?

Uttar Pradesh has launched a scheme to facilitate the development of private industrial parks. Known as ‘Providing Leadership and Enterprise for Development of Growth Engines (PLEDGE), the scheme provides private entrepreneurs an incentive to develop Industrial Parks of size 10-50 Acres for the MSME Sector in the State. So far 10 such parks have been started. The state has also launched the Accident Insurance Scheme for Micro Entrepreneurs, under which `5 lakhs of financial support is given to the entrepreneur on accident or death.

Mukhya Mantri Yuva Rojgar Vikas Abhiyan (CM- YUVA) under which `5 lakh interest-free loan will be given to trained youth to start a new enterprise has also been launched. The scale of finance goes up to `7.5 lakh and `10 lakh on the return of the loan successfully. Under this new Scheme, 10 lakh youth will be covered in the next 10 years with
1 lakh every year.

Also, the One District One Product Scheme of the state government has given a boost to MSME. Further, Vishwakarma Shram Samman Yojna has helped in training and providing toolkits and working capital to traditional trade workers. This has now been given impetus through the PM Vishwakarma Scheme initiated in September 2023. Specialised Clusters of ODOP Scheme and Common Facility Centres (CFC) have been provided to take ODOP to a higher business level. So far, 10 CFCs have been made operational and work is under progress on the other 18. Further, the MSME Policy- 2021 offers various incentives to the industry for capacity building, innovation, product development, etc. It also offers Capital Subsidy, Infrastructure Interest Subsidy, Electricity Duty exemption, etc. to the new MSME units.

What are the key priorities and missions under the new industrial development policy to accelerate industrialisation and job creation over the next 5 years?

In a bid to accelerate infrastructure and industrial development in the state, the government has focused on various sectors and all regions. It is taking a cluster approach for quick development. Apart from developing different sector- specific parks, the state has formed the Bundelkhand Industrial Development Authority (BIDA), under which there is a plan to develop industrial, commercial, and residential townships in the Bundelkhand region over 35,000 Acres on the lines of Noida and Greater Noida. Also, the government is promoting investments in new areas like Semi- Conductor, Electronics, IT Data Centre, etc. to create employment in upcoming areas. The focus is to achieve the target of becoming a USD 1 trillion economy in a time-bound manner.

How is the government leveraging the Centre’s schemes like the Production Linked Incentive to promote the manufacturing of specific goods within the State?

Uttar Pradesh Industrial Investment & Employment Promotion Policy, 2022 provides the following top-up on incentives received under the Production Linked Incentives (PLI) Scheme of the Government of India:
i) Top up by an additional 30% of the PLI incentives sanctioned under any PLI Scheme of the Government of India Scheme to be disbursed as and when that gets disbursed by the Central Government.
ii) An overall ceiling of the incentives to be provided by GoUP to be capped at 100% of Eligible Capital Investment (ECI).
iii) ESDM Policy offers a top-up of up to 50% on the PLI granted by the central government.

What are the proposed strategies to bolster the State’s multi-modal connectivity infrastructure?

Uttar Pradesh has made considerable progress in developing a robust infrastructure and multi-modal connectivity for logistics efficiency in the state. The formidable connectivity web of air, water, road, and rail network that is being created in the State will help the industries and manufacturing units switch seamlessly between different modes of transport as they send their goods to markets in India and abroad.

The state has the largest network of road (around >400,000 Kms) connectivity in India. Now, it has established itself as the State of Expressways with thirteen existing & upcoming Expressways; of these six expressways have been completed (1,225 kms) while seven are under various stages of development. These Expressways provide seamless connectivity to the manufacturing hubs across the length and breadth of the State.

With existing international airports at Lucknow, Varanasi, Ayodhya, and Kushinagar and a new airport coming up at Jewar, Uttar Pradesh is set to become the only State in the country with 5 international airports. The Jewar International Airport is set to be India’s largest international airport spread over 5,000 hectares. Also, UP hosts India’s largest railway network (more than 16,000 Km) and is home to a considerable catchment area of Western Dedicated Freight Corridor (WDFC) – 8.5% and Eastern Dedicated Freight Corridor (EDFC) – 57%. Both the corridors intersect in UP at Dadri (G.Noida).

Here, the country’s first inland waterway, connecting Prayagraj and Varanasi to Haldia Port is coming up. Of this, the track between Varanasi to Haldia (~1,100 Km) has been made operational. A Multi-Modal Terminal at Varanasi and various floating terminals are operational along the NW-1 at Ghazipur / Rajghat, Ramnagar (Varanasi), and Prayagraj. Multi-Modal Logistics Hub (MMLH) at Dadri and Multi-Modal Transport Hub (MMTH) at Boraki in Greater Noida are being developed.

Would you like to share anything else about opportunities in Uttar Pradesh?

Our State is poised to become the growth engine of the country to achieve the target of Developed India. With robust infrastructure (road, expressways, rail, freight, metro, RRTS, airports, waterways), ideal law and order situation with zero tolerance to crime and corruption, high- quality working environment with top performances in various GoI Indices including Ease of Doing Business, etc, rich natural endowment with land and water making it first in the production of food grains, vegetables, fruits, and milk, increasing set up for capacity building through skilling, technical and higher education etc.

All such developments in the last 7 years have made UP a haven for industrial and business investments. This has attracted the signing of Investment Interests of nearly `37 lakh crores so far since February 2023. Ground Breaking Ceremony on 19 February 2024 will witness the grounding of Projects worth over `10 lakh crores. These steps are laying the foundation of the Developed New Uttar Pradesh.

 

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