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1 No.-402/77-6-14-5 (M)/13 From: Jawed Usmani Chief Secretary, Government of Uttar Pradesh. To, All Principal Secretaries/Secret

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1 No.-402/77-6-14-5 (M)/13 From: Jawed Usmani Chief Secretary, Government of Uttar Pradesh. To, All Principal Secretaries/Secret Disclaimer "The government orders have been translated from Original Hindi purely to facilitate non-Hindi users and for wider reach. Although utmost care has been taken to ensure the accuracy of translation, yet in case of any differences in interpretation of provisions provided herein, the 'Original' Hindi version will prevail." No.-402/77-6-14-5 (M)/13 From: Jawed Usmani Chief Secretary, Government of Uttar Pradesh. To, All Principal Secretaries/Secretaries, Government of Uttar Pradesh. All Divisional Commissioners / District Magistrates, Uttar Pradesh. Commissioner and Director, Industries, Uttar Pradesh, Kanpur. Executive Director, Udyog Bandhu, Lucknow. Industrial Development Section-6 Lucknow: 3rd March, 2014 Subject: Encouragement to establishment of Mega Projects in the State. Sir/Madam, In the context of the subject mentioned above, kindly refer to the Infrastructure & Industrial Investment Policy 2012 issued by the State Government, under its Para 5.7, titled ‘Mega Projects’, it has been provisioned to make permissible special facilities and incentives on case-to-case basis to encourage establishment of Mega Projects. 2. In view of the hurdles in establishment of mega projects in the state, after partial amendment in Para 5.7 of the policy and superseding previously issued Government Order No. 1457/77-6-12-08-(M)/12-T.C.-VII, dated 23.01.13 as well as 'U.P. Mega Projects Encouragement Regulations 2012', notified vide Office Order No. 138/77-6-12-T.C.-VII, dated 23.01.13, a comprehensive Government Order is hereby issued as under: 3. This scheme shall be applicable in whole of Uttar Pradesh (U.P.). 4. After partial amendment in Para 5.7 of Infrastructure & Industrial Investment Policy 2012, it has been provisioned that 'Mega Projects' mean all private or joint sector (in which the equity of government or any public sector enterprise is less than or equal to 49%) industrial units with proposed investment of INR 200 Crore or more, including such units also, which are undertaking expansion / diversification. Often urgent state government help is required for setting up of such units, so that time could be saved in their establishment and production could be commenced from them as soon as possible. In order to attract large scale capital investment to the State and to transform Uttar Pradesh into the most competitive investment destination across the globe, it is imperative that more and more mega projects are established in the state. To achieve this objective, the state government shall encourage mega projects in the following manner: (a) Subject to appropriate conditions, all fiscal incentives specified in Infrastructure & Industrial Investment Policy 2012 shall be made permissible to mega projects with capital investment of more than INR 200 Crores but less than INR 500 1 Crores. The maximum financial limit of such incentives could be relaxed on case-to-case basis after due approval by Hon’ble Cabinet of Ministers on the recommendation of Empowered Committee, but with the condition that incentives, which are not covered in the Infrastructure & Industrial Investment Policy 2012, shall not be permissible to this category of Mega Projects. Allotment of land, water, power connection, etc. will be made available to these projects on priority through Fast Track Mode. In case, infrastructure facilities like- roads, power line, sewer line, drainage are required for setting up of such projects, the same shall be considered to be provided at partial or whole government expenditure. (b) Mega Projects with capital investment of INR 500 Crores or more, in addition to abovementioned incentives, might be provided even those facilities, which are not covered under Infrastructure & Industrial Investment Policy-2012. These facilities shall be provided on case-to-case basis after due approval by Hon’ble Cabinet of Ministers on the recommendation of Empowered Committee. (c) All such facilities that are permissible to Industrial Mega Projects with an investment of INR 500 Crore or more, shall also be available to the projects with capital investment of INR 500 Crore or more towards enabling skill development and proficiency enhancement in the State on case-to-case basis after due approval of Hon’ble State Cabinet of Ministers on the recommendation of Empowered Committee. 5. All benefits available to Mega projects could also be provided to brown-field and units undertaking expansion/diversification along with green-field units. 6. Calculation of fixed capital investment shall include investment made in land, building, plant and machinery and other capital assets. ‘Plant & Machinery’ refers to new plant and machinery, which includes instruments, humidifier, generating sets, boilers, captive power plant, apparatus, components, jigs, fixtures, dyes and moulds; and other such new plant-machinery which may be used for production according to the nature of unit. 7. The fiscal benefits provided under the permissible special facilities to mega projects shall be made admissible on the capital investment made after the cut-off date. ‘Cut-off Date’ means date of issue of original Government Order for encouragement to mega projects, i.e. 23.01.2013. 8. His Excellency Governor of Uttar Pradesh has the pleasure to allow constitution of following Empowered Committee for promotion of Mega projects and projects towards skill development and proficiency enhancement under the Infrastructure & Industrial Investment Policy 2012, as defined in the Para 4(c) above. 8.1 Empowered Committee: 1. Chief Secretary, Government of Uttar Pradesh CHAIRMAN 2. Infrastructure & Industrial Development Commissioner, Government of U.P. MEMBER 3. Principal Secretary, Infrastructure & Industrial Development 2 Department, Government of U.P. MEMBER 4. Principal Secretary, Finance Department, Government of U.P.MEMBER 5. Principal Secretary, Planning Department, Government of U.P.MEMBER 6. Principal Secretary, Law Department, Government of U.P. MEMBER 7. Principal Secretary, Micro, Small & Medium Enterprises Department, Government of U.P. MEMBER 8. Executive Director, Udyog Bandhu MEMBER SECRETARY 8.2 As and when required, Divisional Commissioners/ Principal Secretaries /Secretaries of the concerned departments will be invited to meetings of the Empowered Committee. 8.3 Udyog Bandhu will function as the Secretariat of the Empowered Committee. Representations/ applications received from industrial units will be forwarded to departments concerned for their report within three working days as much as possible. The departments concerned will compulsorily submit the report to Udyog Bandhu within one week. Udyog Bandhu shall place the related case for consideration of the Empowered Committee in its forthcoming meeting. Entrepreneur as well as department concerned will also be invited to attend this meeting. 9. Scope of the Empowered Committee: 9.1 To consider on case-to-case basis the merits and demerits of special concessions/incentives sought by Mega projects with capital investment of more than INR 200 Crore in Uttar Pradesh. 9.2 To consider the merits and demerits of special incentives sought by all Mega projects from the State government, including also those units undertaking expansion/diversification, on case-to-case basis according to the government orders and, if there is consensus, to present the case through Industrial Development Department to Hon’ble Cabinet of Ministers for decision. 9.3 To consider on case-to-case basis the merits and demerits of special incentives sought by all Mega projects with capital investment of INR 500 Crore or more towards enabling skill development, proficiency enhancement or capacity building in the State and, if there is consensus, to present the case through Industrial Development Department to Hon’ble Cabinet of Ministers for decision. 9.4 To take a final view on providing infrastructure facilities to Mega Projects by establishing inter-departmental coordination. In case, infrastructure facilities like- roads, power line, sewer line, drainage are sought for setting up of such projects, the same to be considered for providing at partial or whole government expenditure. 9.5 To resolve issues of entrepreneurs relating to setting up of Mega Projects and to facilitate issuance of approvals/clearances by departments concerned on fast track mode. 3 9.6 To consider allotment of land, allocation of water from rivers and canals, power connection on fast track mode. 9.7 To review Policies, Rules and Acts related to setting up of Mega Projects and to recommend for their simplification and improvement. 9.8 To review the progress of providing special incentives by different departments/ Authorities/ Corporations, etc. to Mega Projects after approval by Hon’ble Cabinet of Ministers. 9.9 To address the problems being faced by Nodal Officer, nominated for inter- departmental coordination for setting up of Mega Projects. 10. The meeting of the Committee could be convened once in every two months and even earlier if required. 11. Udyog Bandhu is being nominated as Authorized Agency for implementation of this scheme. Udyog Bandhu means State level Udyog Bandhu, which has been registered under Firm & Societies Act, 1860 and an agency under the control of Government of U.P. 12. Mega project shall have to fulfill following conditions to get the incentives under the policy: 12.1 Industrial Entrepreneur Memorandum/ Letter of Intent (IEM/LoI) should have been filed in the Department of Industrial Policy and Promotion of Government of India. 12.2 Maximum 15 per
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