The state cabinet has cleared a new bioplastic policy to encourage investment in the manufacture of biodegradable and compostable plastics. The companies that are willing to invest Rs 1,000 crores or more in this sector will get a 50% subsidy for seven years and 100% reimbursement of state GST for 10 years. Such companies will not be charged duties on electricity supply. In any case, the aggregates of all the benefits that will be offered are capped at 2% of the investment over the following 10 years. The number of jobs that a unit set up under this policy is expected to create is more than 2,000, reported PTI..
During its meeting on Tuesday, the Uttar Pradesh cabinet noted that no other state has implemented a bioplastic policy, and by becoming the first, UP hopes to encourage bioplastics to play a role in the startup ecosystem.
Another key decision taken by the cabinet was to grant industry status to the information technology (IT) and IT services sectors. The cabinet highlighted the role these sectors will play in helping the state achieve its goal of becoming a one trillion-dollar economy within the next five years.
With the new industry status, IT services will now have access to land at industrial rates. Companies using a minimum of 150 KW of electricity will also benefit from industrial power rates, which will save them around 18% on electricity costs.
The cabinet also approved a “Higher Education Incentive Policy” to encourage private and foreign investment in the state’s higher education sector. The policy aims to promote educational opportunities that align with modern needs, while also reducing the outflow of students to other states for higher education.
