In a bid to promote manufacturing of electrical vehicles in Uttar Pradesh, the Yogi Adityanath government has decided to provide various incentives and subsidy to the investors. The government will encourage especially those investors that carry out skill development of the employees, officials here said.
Provisions have been made in the EV Manufacturing and Mobility Policy in this regard. Clear information about financial incentives for skill development has been provided in the manual related to the implementation of the policy.
Accordingly, skill development subsidy will be provided to companies investing in EV manufacturing in the state. Additionally, a separate financial incentive will also be provided to train the employees in a particular year.
It is worth mentioning here that Chief Minister Yogi Adityanath, in a recent program, had appealed to the companies investing in the state to also make efforts for skill development of the youth in order to create a skilled workforce, and had also assured of all possible help from the government in this regard.
Notably, skill development subsidy has been mentioned in the EV policy wherein a one-time subsidy at the rate of Rs.5000 per employee per year will be provided to a maximum of 50 employees in the form of reimbursement of stipend for all defined manufacturing projects. Under this provision, a subsidy will also be paid for training a maximum of 10 employees in a particular year.
However, this incentive will be applicable only to those employees who are employed in the applicant manufacturing unit for a period of 12 months prior to joining the training programme.
To be eligible for this subsidy, this training program should be certified by National Skill Development Corporation or Uttar Pradesh Skill Development Mission or any Central/State University/College or ITI/Polytechnic.
All incentive benefits will be provided only after the commencement of commercial production as per the provision made in the EV policy. The aggregate of all financial incentives for manufacturing projects should not exceed 100 per cent of the fixed capital investment.
Under the policy, the basis of ‘First Come, First Serve’ will be set for those projects, which are being provided a letter of comfort by the State Government for promotion under the policy.
It may be known that an MoU has been signed for investing in EV manufacturing on a large scale in the state. Not only Indian companies, but also foreign companies wish to invest in EV manufacturing sector in UP. The biggest investment is coming from a Hong Kong based company named ‘Tauschen International Ltd.’ which is a part of the Tauschen Group of Companies.
Apart from EV manufacturing, this one company has signed an MoU for an investment of 1.90 lakh crores in many other sectors. Similarly, RG Strategies Group and Cosis Group have also signed major investment agreements in the EV sector. Apart from these, many other companies are preparing to set up manufacturing units in the state.