Mega incentives approved to boost semiconductor investment in Uttar Pradesh

Interest subsidy, employee cost reimbursement and net SGST exemption for 10 years for semiconductor units

100% EPF reimbursement for UP domiciles and ₹2 per unit power tariff relief for 10 years

14 proposals placed before the cabinet, 13 approved

Lucknow, January 2026 : In a meeting of the Council of Ministers chaired by Chief Minister Yogi Adityanath, the Uttar Pradesh government approved another major proposal aimed at accelerating industrial development in the state. To attract large-scale investments under the Semiconductor Policy 2024, introduced in January 2024, special incentives will now be offered on a case-to-case basis for investments of ₹3,000 crore or more.
Finance and Parliamentary Affairs Minister Suresh Khanna informed that a total of 14 proposals were placed before the cabinet, out of which 13 received approval.

Briefing the media after the meeting, Suresh Khanna said that semiconductor manufacturing is rapidly expanding in countries such as the United States, Europe, Japan and Taiwan. In line with this global trend, the Yogi government has decided to position Uttar Pradesh as a major hub for the emerging semiconductor industry.

Under the approved decision, semiconductor units will be eligible for interest subsidy, employee cost reimbursement, exemption in net SGST for a period of 10 years, 100% EPF reimbursement for UP domiciles (up to ₹2,000 per month), concessions in water charges, and electricity tariff relief of ₹2 per unit for 10 years. The objective of the policy is to attract large investments and generate substantial employment opportunities in the state.

The cabinet approved the construction of a modern bus station near the district headquarters on Tanakpur Road, Pilibhit. The facility will be developed on 1.317 hectares of Revenue Department land, to be leased to the Uttar Pradesh State Road Transport Corporation for 30 years, extendable up to 90 years. The new bus station will improve connectivity for passengers traveling to Uttarakhand and Nepal and is targeted to be completed within two years.

Approval was granted for the construction of a 500-bed multi super speciality hospital at the Shiv Prasad Gupta SSPG Divisional District Hospital campus in Varanasi. The project involves demolition of 11 dilapidated buildings and will be completed at a cost of ₹315.48 crore within four years. Sixty percent of the funding will be provided by the Central Government and forty percent by the State Government. The project will significantly enhance advanced healthcare facilities in eastern Uttar Pradesh.

The cabinet approved amendments to the recruitment process for regional sports officers in the Sports Department. Out of 18 sanctioned posts, two-thirds (12 posts) will now be filled through promotion and one-third (6 posts) through international medal-winning athletes from the Olympics, Asian Games and Commonwealth Games. The decision aims to balance administrative experience with sporting excellence.
The cabinet approved the demolition of old and dilapidated residential buildings of the 37th PAC Battalion in Kanpur. Following demolition, 108 new Type-One Special residential units will be constructed to provide improved housing facilities for PAC personnel.

The cabinet approved the allotment of 50 acres of land free of cost for the establishment of an off-campus of the National Forensic Sciences University, Gandhinagar, in Varanasi. The land, located in Tehsil Raja Talab, will be allotted on a 99-year lease after transfer from the Animal Husbandry Department. The new campus will strengthen education and technical capacity in forensic science, cybercrime and criminal investigation in Uttar Pradesh.