Promote manufacturing
1) Capital subsidy shall be provided on Base Capital Subsidy multipied by Gross Capacity
Utilisation Multiple (GCM).
1.1 The Base Capital Subsidy shall be provided on following rates -
- 1st two Integrated EV Project and 1
st two Ultra Mega Battery Project each as
defined in the policy shall be provided capital subsidy at the rate of 30% of eligible
fixed capital investment subject to max INR 1000 Cr per project to be provided
over a period of 20years in equal annual instalments
- 1st five Mega EV Project and 1
st five Mega Battery Project each as defined in the
policy shall be provided capital subsidy at the rate of 20% of eligible fixed capital
investment subject to max INR 500 Cr per project to be provided over a period of
10years in equal annual instalments
- Large EV Project and Large Battery Project as defined in the policy shall be
provided capital subsidy at the rate of 18% of eligible fixed capital investment
subject to max INR 90 Cr per project to be provided over a period of 10years in
equal annual instalments
- MSME Projects as defined in the policy shall be provided capital subsidy at the
rate of 10% of eligible fixed capital investment subject to max INR 5 Cr per project
to be provided over a period of 2years in equal annual instalments
1.2 The Gross Capacity Utilisation Multiple (GCM) has been introduced in the policy
to ensure that optimal utilisation of the installed capacity is done by the
beneficiaries of this Policy. The GCM shall be considered as 1 for first year
provided the capacity utilization for the unit is 40% of the installed capacity. For
the subsequent years GCM shall be considered as 1, provided the peak capacity
utilisation of that year is 75% or more of the installed capacity.
- Accordingly, the maximum GCM value shall be '1'
- In case the peak capacity utilisation is less than 75%, the GCM shall be
proportionately reduced as per the given formula -
GCM = Minimum of (75%, Peak Capacity Utilisation of the considered year)/75%
- If the Peak Capacity Utilisation is less than or equal to 10% of installed
capacity, the GCM will be 0
- In case of Phased Investment, the GCM for the first year after each phase will
be considered 1 for the additional investment done, if the capacity utilisation
is at least 40% of the additional capacity installed in that phase.
- In the subsequent years, the GCM will be 1 if the total capacity utilisation of
the unit is 75% of total installed capacity and if below, the GCM will be
proportionately reduced
- The Capital Subsidy that is reduced due to a GCM of below 1 in a particular
year will not be carried forward to subsequent years
Other calculation details shall be clarified in a separate Government order
notified for implementation of the manufacturing incentives defined under this
policy.
2) Stamp Duty reimbursement on purchase/ lease of land shall be provided post
commencement of commercial production at following rates
- 100% to Integrated EV Project & Ultra Mega Battery project anywhere in UP
- 100% in Poorvanchal & Bundelkhand region, 75% in Madhyanchal &
Paschimanchal (except GHZ & GBN district) and 50% in GBN & GHZ district to
Mega/ Large/ MSME projects as defined in the policy
3) Other incentives on purchase/ lease of land shall be provided post
commencement of commercial production at following rates
- Quality certification charges reimbursement shall be provided one time at the
rate of 50% of fees paid for obtaining certification upto max INR 10 lakhs per unit
to Large and MSME EV/ Battery projects
- Patent registration fees reimbursement shall be provided one time at the rate
of 75% of cost/expenditure incurred upto maximum INR 50000 for acquiring
domestic patent and upto INR 2 lakh for acquiring international patent to Large
and MSME EV/ Battery projects
- Skill development incentive as reimbursement of stipend shall be provided one
time at the rate of INR 5,000 per employee per year to a maximum of first 50
employees to all defined manufacturing projects
