Uttar Pradesh Warehousing and Logistic Policy, 2022

1. “Storage facilities” as defined in said Policy as–

• Warehouses including go-downs both open/ closed developed for handling and storage of cargo in bulk/ break bulk form.
• Silos built as vertical storage structures for storing bulk cargo in both solid and liquid form.

2. Subsidy for Silo Project:

Silo Project are covered under the storage facility hence eligible to take incentives as per said policy and there are two types of subsidies i.e Front End Subsidy and Back End Subsidy.

3. Subsidy Pattern:

• Front End Subsidy: The Front-end subsidies include exemptions/ concession which shall be allowed to the eligible projects as defined in this policy before commencement of commercial operations. Projects need to be registered with Nodal Agency and obtained Unique ID.
• Back End Subsidy: Back-end subsidy shall be provided after completion of project and commencement of commercial production. Projects need to be obtained Letter of comfort (LoC) for this.

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4. Eligible Criteria for Capital subsidy:

• Warehouse including go-downs developed over minimum area of 1 lakh Sq. ft and minimum Capital Investment of INR 20 Crores.
• Silo developed over minimum area of 4-acres and minimum Capital Investment of INR 30 Crores.

5. Eligible Capital Investment:

Capital Investment Includes the following cost as:

• Land: The Actual Purchase price as per registered documents excluding stamp duty and registration fee subject to maximum of 40% of Total Capital Investment.
• Building: Only cost of construction of new building shall be taken not acquisition of old building and repair expenditure incurred thereon.
• Other Construction: Such as Compound wall, internal road etc.
• Equipment: Includes cost of Equipment, Inhouse Vehicle, Electrification etc.

Note: Working Capital shall not be part of Capital Investment.

Further Project should be operationalization within 3 Years from the Effective period of policy. In case, Capital Investment has been initiated prior to the Effective Date then at least 80% of Capital Investment should have been made after Effective Date during the eligible investment period and the same Capital Investment will be considered as the Eligible Capital Investment for determining admissible total incentives.

However, in case, investment in land is made prior to the Effective date, such investment in land shall not be eligible for any incentives but valuation of such land on book value shall be considered for determining the eligibility of the projects.

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6. Fiscal Incentives:

(i) Front end subsidies:

Stamp Duty exemption

1. Exemption of Stamp duty on land purchased or taken on lease (for a period of at least 10 years) shall be provided at following rates:
2. 100% in Bundelkhand and Poorvanchal region and region covered under ‘Taj Trapezium Zone’
3. 75% exemption in Madhyanchal and Paschimanchal (except Gautambuddha Nagar & Ghaziabad)
4. 50% exemption in Gautambuddha Nagar & Ghaziabad

Concession on Land use conversion charges

75% of Land Use conversion charges shall be waived off

• Exemption in Development Charges

75% of the development Charges shall be exempted

• Ground Coverage

Such standalone storage facilities will be allowed Ground Coverage up to 60%

(ii) Back-end subsidies:

Capital Subsidy

• Capital Subsidy to Warehouses/ Silos/ Cold Chain Facility shall be provided at the rate of 15% of Eligible Capital Investment subject to:
• maximum INR 5 crores for setting up such facilities anywhere in the State;
• maximum INR 10 Crores for setting up such facilities in the designated Logistics Zones.

Electricity Duty Exemption

• Exemption of Electricity Duty shall be provided at the rate of 100% for a period of 10 years

Quality Certification cost reimbursement

• Quality Certification cost reimbursement shall be provided at the rate of 50% of cost paid upto maximum INR 5 lakh per project

Skill Development Subsidy

• Skill Development subsidy shall be provided as reimbursement of stipend @INR 1000 per trainee per month for 6 months up to maximum 50 trainees per annum for 5 years per project

Note:

1. Sum of all benefits including exemptions provided to any project shall not exceed 100% of eligible capital investment as defined under the policy.
2. Towards this, the reimbursements shall be done to any project post commencement of commercial operations and evaluation of exemptions availed by the applicant against the unique ids issued by the Nodal Agency (if any).
3. Projects benefited under this policy will be eligible to get admissible benefits of Govt. of India’s Plan Agriculture Infrastructure fund.