The Yamuna Expressway Industrial Development Authority (YEIDA) announced on Wednesday its plans to introduce an industrial plot scheme on November 15. This scheme is exclusively designed for Japanese-based manufacturing units and will be located within the upcoming Japanese City in Sector 10, near the Noida International Greenfield Airport in Jewar.
Yeida also intends to allocate land to Japanese companies in Sector 32, situated adjacent to Sector 10. This move follows the recent approval of the foreign direct investment (FDI) policy by the Uttar Pradesh cabinet, which permits multiple subsidies for foreign companies looking to establish operations in the state.
A notable development is the commitment of at least 15 Japanese companies that have shown interest in investing in the Yamuna authority areas. This presents Yeida with a significant opportunity to provide top-notch services, fostering a favorable business environment for Japanese enterprises.
Arun Vir Singh, Chief Executive Officer of YEIDA, highlighted the attractiveness of the region for Japanese companies. “Japanese companies have shown their interest in purchasing industrial land and establishing manufacturing units in the Yamuna authority region owing to the presence and availability of world-class infrastructure, including expressways, rail and air connectivity. The added advantage for these companies is that the Uttar Pradesh government is offering many incentives for them.“
The Japanese City will be developed on a 500-acre site in Sector 10, exclusively for Japanese investors. These units are primarily engaged in the production of electronics, semiconductors, AI, chips, and various related products.
The Uttar Pradesh government’s FDI policy offers several incentives, such as mixed land use on industrial plots and freedom regarding the floor area ratio. In addition, companies investing a minimum of ₹100 crore will be eligible for FDI benefits, including a 75% subsidy on land costs, which will be reimbursed to the company in installments once the project is established.
To further support the scheme, the state government will allocate waste and barren government land to YEIDA. Companies investing in these projects will also be exempt from paying state GST for ten years. Moreover, companies will receive ₹2 crore for research and development, ₹10 crore for worker accommodations, and 100% exemption from electricity charges for five years, with further electricity bill relief afterward.
Additionally, the government aims to train the youth through these companies by providing ₹5,000 per person per month to train 500 people, thus creating a skilled workforce.
In Gautam Budh Nagar and Ghaziabad, a 25% subsidy will be provided on capital investment. Similar capital subsidies of 30% in Paschimanchal and Madhyanchal, and 35% in Bundelkhand and Purvanchal, will be available for interested companies, according to state officials.