UP targets semiconductor investment with incentives for Rs 3,000-crore projects

Aiming to attract large investments under the Semiconductor Policy introduced by the UP government in January 2024, the UP cabinet decided to give special incentives on investments of ₹3,000 crore or more.

The decision was taken at the meeting of the state cabinet which chief minister Yogi Adityanath chaired in Lucknow on Tuesday.

Giving information about the cabinet decisions, the state’s finance and parliamentary Suresh Khanna said that a total of 14 proposals were placed in the cabinet, out of which 13 were approved.


The minister Khanna said that semiconductor manufacturing is taking place on a large scale in countries like the US, Europe, Japan, and Taiwan. To further promote India, and Uttar Pradesh in particular, as a major hub for this emerging industry, the state government has approved incentives on a case-by-case basis.

These include interest subsidies, employee cost reimbursement, a 10-year net SGST exemption for semiconductor units, 100% EPF reimbursement (up to a maximum of ₹2,000 per month) for Uttar Pradesh residents, water tariff waivers, and a ₹2 per unit electricity bill discount for 10 years. He further added that the primary objective of this policy is to generate large-scale investment and employment opportunities in the state.

The cabinet also cleared a proposal for the establishment of a new bus station near the headquarters on Tanakpur Road in Pilibhit district. The bus station will be built on 1.317 hectares (approximately 7,000 square meters) of Revenue Department land. The State Government has decided to lease to the Uttar Pradesh Transport Corporation for 30 years, extendable to 90 years. The construction of the new bus station will provide great convenience to passengers travelling to Uttarakhand and Nepal. The minister said that the construction work of the bus station is expected to be completed within two years.

The state cabinet also approved the demolition of 11 dilapidated and unused buildings on the Shiv Prasad Gupta SSPG Divisional District Hospital, Varanasi campus to replace them with a 500-bed multi-super-specialty hospital. The hospital will be built at a cost of Rs 315.48 crores and will be completed in four years. Sixty percent of the project's funding will be borne by the central government (approximately ₹189 crore) and the state government (approximately ₹126 crore). This decision will provide state-of-the-art, high-quality medical facilities to patients in the Purvanchal region.