Uttar Pradesh Cabinet Clears Incentives Over ₹3,000 Crore for Semiconductor Projects

The Uttar Pradesh Cabinet has approved a set of incentives for semiconductor projects involving investments of ₹3,000 crore or more.  

The decision was taken at a meeting chaired by CM Yogi Adityanath. The incentives form part of the Semiconductor Policy 2024, which was notified by the state government in January last year. 

Nature of Incentives Offered 

According to the news reports, incentives will be extended on a case-by-case basis. These include interest subsidies and reimbursement of select employee-related costs. Companies will also receive a full exemption from net state goods and services tax for a period of 10 years.  

The policy allows reimbursement of employee provident fund contributions for Uttar Pradesh residents, capped at ₹2,000 per month per employee. 

Utility and Operational Cost  

The approved package also provides concessions on water tariffs for eligible units. In addition, companies will receive relief on electricity charges, amounting to ₹2 per unit, for a period of 10 years.  

The incentives are designed to reduce operating costs during the initial years of large manufacturing projects. 

Cabinet Meeting Outcomes 

Finance and Parliamentary Affairs Minister Suresh Kumar Khanna said that 13 of the 14 proposals placed before the cabinet were approved.  

He noted that semiconductor manufacturing is currently dominated by regions such as the US, Europe, Japan and Taiwan, and that the state policy aims to attract investments into Uttar Pradesh. 

Semiconductor Investments in the State 

Uttar Pradesh has been seeking to expand its electronics and semiconductor manufacturing base. Several electronics manufacturers already operate in the state. Earlier, a joint venture semiconductor unit with an investment of ₹3,700 crore was approved in Noida under the India Semiconductor Mission.  

The Centre has also cleared a ₹417 crore electronics manufacturing cluster in Gautam Buddha Nagar, expected to attract ₹2,500 crore in private investment and generate employment. 

Other Cabinet Approvals 

Apart from industrial policy decisions, the cabinet approved the construction of a new bus station in Pilibhit, a 500-bed multi-super specialty hospital in Varanasi at a cost of ₹315.48 crore, new housing units for PAC personnel in Kanpur, and land allocation for an off-campus centre of the National Forensic Science University in Varanasi. 

Read More: Best Semiconductor Stocks for January 2026: BEL, CG Power and More – Based on 5-Yr CAGR! 

Conclusion 

The cabinet approvals cover a mix of industrial, infrastructure and institutional projects, with semiconductors identified as one of the sectors for targeted investment support. 

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