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UP government's complete preparation to promote electric vehicles

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UP government's complete preparation to promote electric vehicles
11 May 2023
5 min read


News Synopsis

The Yogi Adityanath government has decided to offer different incentives and subsidies to investors in an effort to promote the Production of Electrical Cars in Uttar Pradesh.

According to officials, the government would support investments, particularly those that help people expand their skills.

In this regard, provisions have been developed in the EV Manufacturing and Mobility Policy. The manual for executing the strategy includes detailed information regarding financial incentives for skill development.

Companies Investing in EV Production in the state are going to get skill development subsidies. A different cash incentive will also be offered to teach the staff members in a specific year.

It is important to note that Chief Minister Yogi Adityanath recently urged businesses investing in the state to support youth skill development in order to develop a skilled workforce. He also committed that the government would provide all assistance possible in this regard.

Notably, Skill Development Subsidies have been noted in the EV Policy, wherein a maximum of 50 workers would get a one-time subsidy in the form of payment of a stipend for All Specified Manufacturing Projects at the rate of Rs. 5000 per employee per year. According to this section, a subsidy would also be given for training up to 10 employees in a given year.

However, only those workers who had been working in the applicant manufacturing unit for a full year previous to joining the training course will be eligible for this incentive.

This training program must be approved by the National Skill Development Corporation, the Uttar Pradesh Skill Development Mission, any Central or State University/College, or an ITI/Polytechnic in order to be eligible for this subsidy.

According to the EV policy's section, all incentive advantages won't start to be given out until commercial production has started. All financial incentives for manufacturing projects together should not be worth more than 100% of the fixed capital investment.

For those projects that are receiving a letter of support from the State Government for promotion under the policy, the concept of "First Come, First Serve" will be used.

It is possible that you know that an MoU has been reached to invest significantly in EV production in the state. Foreign and Indian businesses equally want to Invest in Uttar Pradesh's EV Manufacturing Industry. The largest investment is coming from Tauschen International Ltd., a Hong Kong-based corporation that is a member of the Tauschen Group of Companies.

This one corporation has signed an MoU for an investment of 1.90 lakh crores across multiple other areas in addition to EV Manufacturing. In a similar vein, significant investment agreements in the EV industry have also been inked by RG Strategies Group and Cosis Group. In addition to this, several more businesses are getting ready to establish manufacturing facilities in the region.

TWN In-Focus