States & UTs

    Yogi Govt Approves First Land Subsidy Under FDI Policy 2023

    Inam Ansari
    November29/ 2023
    Last Updated:

    CM Yogi

    Lucknow: In a first step following the recently enacted Foreign Direct Investment Policy 2023 (FDI 2023) in Uttar Pradesh, the state government, led by Chief Minister Yogi Adityanath, has decided to provide a 'front-end land subsidy' to the first company.
    Infrastructure and Industrial Development Commissioner Manoj Kumar Singh has issued the approval letter and eligible certificate for providing front-end land subsidy for the proposed project of Fuji Silvertech Concrete Private Limited (FSCPL), as requested by the company, the Uttar Pradesh said in a media release on Wednesday.
    Significantly, the Yogi-led cabinet recently approved the Uttar Pradesh Foreign Development Policy. This is the first case of approval for land subsidy for any company after the policy was formulated.
    The letter of approval sent to the Managing Director (MD) of Fuji Silvertech Concrete Private Limited (FSCPL) stated that the evaluation committee of Invest UP evaluated the proposal in its meeting held on November 22, 2023, and approved the FDI for the grant of front-end land subsidy.
    The committee recommended the grant of front-end land subsidy and referred the matter to the Empowered Committee established under Clause 31 of the Investment Promotion Policy 2023 for Fortune Global 500 and Fortune India 500 Companies.
    The Empowered Committee has given its approval for granting 75 per cent of front-end land subsidy for the proposed project, covering 10 hectares (approximately 25 acres) of land in Yamuna Expressway Industrial Development Authority, Gautam Buddha Nagar district, the release added.
    This project is proposed by the Yamuna Expressway Industrial Development Authority (YEIDA). The project is related to the construction of precast concrete products using Wet Cast Technology and Sulfur Concrete Technology.
    In Phase 1, there will be an installed capacity of 650 TPD, and in Phase 2, there will be an additional capacity of 350 TPD. The estimated cost of Phase 1 is Rs 150 crores while Phase 2 will also cost Rs 150 crores. Approximately 700 people will directly and indirectly gain employment from Phase 1 of the project, the release added.
    As per the proposed structure of Phase 1's finances, there will be a foreign investment of Rs 100 crore (85 crores through a Standby Letter of Credit and 15 crores through equity), while the Indian promoter will invest Rs 50 crore (including 10 crores of equity and 40 crores as a loan).
    Fuji Silvertech Concrete Private Limited (FSCPL) is a Special Purpose Vehicle (SPV) formed to set up and operate manufacturing facilities of pre-cast concrete products in India. The manufacturing facilities will be based on wet cast technology and sulfur concrete technology owned by Fuji Concrete Industry Co., Ltd. (FCICL) and Toyota Kokhi Co., Ltd. (TKCL), which are joint venture partners in FSCPL.
    Notably, FCICL has been operating since 1970, and TKCL has been operational since 1966. Both the firms are based in Japan. Fuji brings cutting-edge technology and collective experience of 100 years. The company has two plants in India, one in Bagodara, Gujarat, and the other in Aurangabad, Maharashtra. The proposed manufacturing plant in YEIDA will be the company's first production unit in North India. —ANI