Lucknow: In an effort to bolster the manufacturing of electric vehicles (EVs) in the state, the Yogi government has unveiled a comprehensive plan that includes various incentives and subsidies for investors. “Notably, the government will prioritise companies that engage in skill development programs for their employees, as outlined in the EV Manufacturing and Mobility Policy,” a Government spokesman said on Friday.
According to the policy implementation manual, financial incentives will be provided to companies investing in EV manufacturing in Uttar Pradesh to support skill development initiatives. Additionally, a separate financial incentive will be granted for employee training on an annual basis. The government spokesman said: “Companies investing in EV manufacturing in the state will be eligible for skill development subsidies. Furthermore, a dedicated financial incentive will be provided to train employees each year.”
During a recent programme, Yogi had urged companies investing in the state to contribute to the skill development of the local youth, emphasising the need to build a skilled workforce. The EV policy specifically mentions skill development subsidies, which will offer a one-time subsidy of Rs 5,000 per employee per year for a maximum of 50 employees involved in defined manufacturing projects. Additionally, subsidies will be granted for training a maximum of 10 employees per year. To be eligible for the subsidy, employees must have been employed in the manufacturing unit for a minimum of 12 months before joining the training programme. The training programme itself must be certified by the National Skill Development Corporation, Uttar Pradesh Skill Development Mission, or any recognized Central/State University/College, ITI, or Polytechnic institution. All incentive benefits will be granted only after the commencement of commercial production, as specified in the EV policy. The total amount of financial incentives for manufacturing projects should not exceed 100 per cent of the fixed capital investment. Projects that have received a letter of comfort from the state government will be prioritized based on a ‘first come, first serve’ basis.
Several major investments have already been secured in the EV manufacturing sector in Uttar Pradesh. Notably, a Hong Kong-based company called ‘Tauschen International Ltd.’ from the Tauschen Group of Companies has made a significant investment. Furthermore, RG Strategies Group and Cosis Group have also signed substantial investment agreements in the EV sector.