Lucknow, 4 November (IANS). Yogi government has taken an important decision to increase foreign investment in Uttar Pradesh. In the cabinet meeting held under the chairmanship of Chief Minister Yogi Adityanath at Lok Bhavan on Monday, amendments in the Incentive Policy-2023 for investment of FDI and Fortune 500 companies were approved.
Through this amendment, Yogi government has given big relief to foreign investors. Through this, now such foreign companies will also be able to invest in the state, which along with equity, arrange money from loan or any other source. With this decision of Yogi government, there is a possibility of increase in foreign investment in the state.
Giving information about the decisions of the Yogi Cabinet, Finance and Parliamentary Affairs Minister Suresh Khanna said that the Foreign Director Investment (FDI) policy was introduced on 1/11/2023, a slight amendment has been made in it. The minimum investment limit for eligibility in the policy has been kept at Rs 100 crore. According to the definition of FDI given by RBI, till now only investments made in equity are included in FDI. In the amendment made in the policy, we have given it the form of Foreign Capital Investment.
He said that till now the company had its own equity under FDI, but most of the companies manage money from outside as well as through other means to expand their business. We have allowed that also. If a company has only 10 percent equity and has arranged 90 percent of the investment amount from other sources, then we will provide benefits to it also.
He told that now this policy will be called ‘Foreign Direct Investment, Foreign Capital Investment and Fortune Global 500 and Fortune India 500 Investment Promotion Policy-2023’. For foreign companies investing in equity as foreign capital investment, preference shares, debentures, external commercial borrowings, stand by letters of credit, letters of guarantee and other debt securities have also been included.
Additionally, other modes which will be applicable for calculation of foreign investment of Rs 100 crore by RBI under the Framework on External Commercial Borrowings, Trade Credit, Structured Obligations. The amount of foreign capital investment made by the foreign investor company (which includes investment of minimum 10 percent in equity and the remaining through debt and other instruments of Rs 100 crore) will be considered eligible under this policy and will be included in the calculation of capital investment. .
Yogi government has also approved the proposal to amend ‘Uttar Pradesh Retirement Benefits Rules-1961’. Under this, if an employee dies while in service or after retirement without receiving the gratuity amount and he has not left behind any family nor has made any nominee, then gratuity can be paid to that person. In whose favor a succession certificate has been granted by a court. Finance Minister Suresh Khanna said that in the earlier system, the gratuity amount of such a person used to go to the government.
–IANS
ABM/AS
