Uttar Pradesh is emerging as the top investment destination, the manufacturing sector is booming in the state


New Delhi: Uttar Pradesh, a state whose name was enough to scare off industrialists just four years ago, has changed rapidly under the leadership of Chief Minister Yogi Adityanath. Today, even these industrialists, who were previously reluctant to invest in the state due to rampant crime and bureaucracy under previous regimes, feel so secure that they are setting up factories worth billions of rupees in the PU.

In fact, tycoons based both in India and abroad have started considering UP as one of the safest places to invest, thanks to CM Yogi’s initiatives to create an investor-friendly environment in the State.

Today, major industrialists at home and abroad are investing heavily in infrastructure, food processing, textiles, electronics manufacturing, real estate, energy and manufacturing in UP. However, out of all these sectors, manufacturing is the most preferred among them and is booming. The receipt of 98 investment proposals worth Rs 13,408.19 crores (over Rs 134 billion) in the manufacturing sector over the past three and a half years bears witness to this.

It should be noted that manufacturing is a sector in which manufacturers are the most cautious about investing. They prefer to invest in this sector only in states, which have a more conducive environment for investment compared to other states.

The manufacturing sector got the much needed boost in UP after CM Yogi made some policy changes to create a conducive environment for investment in the state.

Projects worth Rs 13,408.19 crore in manufacturing in 3.6 years

According to statistics released by the Department of Industrial Development, the 98 investment proposals worth Rs 13,408.19 crore in the manufacturing sector include ten proposals worth Rs 4,250 crore (Rs 402 billion) d foreign investors as well as 88 proposals from domestic companies for the creation of large state manufacturing units that will provide jobs for more than 22,028 people.

The Yogi government has provided land to 66 industrialists out of 88 for the establishment of their manufacturing units. Most of these manufacturers have completed the construction of their units and also started production. In addition, 26 major manufacturers are pursuing their set-up project.

According to officials, Covestro IP is setting up a plastic manufacturing unit in Gautam Budh Nagar (Noida) at a cost of Rs 800 crore. Similarly, UltraTech Company is setting up a cement factory in Prayagraj at a cost of Rs 600 crore. Sparsh Industries Private Limited and Rimjhim Ispat have respectively invested Rs 600 crore and Rs 550 crore in Kanpur Dehat. Additionally, DCM Shriram is setting up a sugar factory in Hardoi at a cost of Rs 361 crore. Kent RO Systems Ltd invested Rs 300 crore in Gautam Budh Nagar while PTC Industries Ltd invested Rs 205 crore in Lucknow.

Yogi

Similarly, MM Forgings Pvt Ltd invested Rs 150 crore in Barabanki and Password Papers invested Rs 351 crore in Meerut. Silverstone is setting up a stationery in Muzaffarnagar at a cost of Rs 180 crore. All of these companies have also started production. Additionally, Kanodia Group is investing Rs 1200 crore in Amethi and JK Cement Limited Rs 650 crore in Aligarh to set up a cement factory.

UP Government’s industry-friendly policies bring industries to the state

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All these investments are taking place in UP due to the Yogi government’s industry-friendly policies and the reciprocity of industrialists through investments to accelerate the development of the state.

According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the transparency of the policies of the Yogi government is the main reason for the increase in investment in the state. The launch of a one-stop-shop system to facilitate various authorizations and certifications by the Yogi government to speed up the establishment of factories has made the task of industrialists hassle-free and much easier. From now on, the industrialist no longer has to run from a pillar in office to set up a business as in the past under previous governments where he had to go to several departments to obtain a single authorization. Also, the introduction of an online system has brought transparency in relationships and transactions.

The No Objection Certificate (NOC) issued to 3,52,098 industries in three and a quarter years through the Nivesh Mitra portal bears witness to this. On the changing environment regarding investments in the state, FICCI Head of State Amit Gupta said that previous UP governments had never addressed the issue seriously and therefore , entrepreneurs had lost confidence in themselves. On the contrary, industrialists have full confidence in the leadership of CM Yogi because he only delivers on the promises he keeps, Gupta pointed out. It should be noted that industrialists are investing in UP despite the coronavirus (Covid-19) pandemic.

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