UTTAR  PRADESH STATE  INDUSTRIAL  DEVELOPMENT CORPORATIONS  (UPSIDC)

Uttar Pradesh State Industrial Development Corporation’ has been endeavouring towards development of laying foundation for technological milestones and making entrepreneurial dreams come true. It’s objective is to put Uttar Pradesh in the driving seat of state level as well as national growth tracks. 

Promotional Activities 

Industrialised skyline, infrastructural self-reliance are two sides of the UPSIDC coin. UPSIDC has earned for itself the reputation of a Growth Catalyst. To realise the untapped potential of the State, the major promotional and developmental activities taken up by UPSIDC are: 

  •  Development of industrial areas equipped with all the necessary industrial environs.
  •  Identification and promotion of infrastructure related projects. 
  •  Execution of civil construction works for public and semi-public organizations. 
  •  Acquisition of land on demand for bigger projects. 
  •  Consultancy services in architecture and town planning works. 
  •  UPSIDC is giving final shape to a host of technology promotion parks, export promotion parks, industrial townships and  innumerable convenient channels of equity participation. 
UPSIDC’s progressive endeavours are focused to develop land into one of the most integrated assets of growth. Be it total industrialisation or infrastructural excellence, UPSIDC is committed to blend them into vehicles of progress. Development of industrial townships and comprehensive infrastructural facilities have been earmarked as priority areas. 

Development of Industrial Areas : 

One of the prime objectives of UPSIDC is to develop industrial areas and provide primary infrastructure. Its industrial areas are equipped with infrastructure facilities like roads, drains, internal power lines, street lights etc. Voluminous efforts have also been made to provide state-of-the-art and need based support facilities like industrial housing, telecom, water supply, common facility centres, banks, post office, dispensary, police outpost, shops, business development centres, modern communication facilities and field hostels etc. UPSIDC has developed 129 Industrial Areas encompassing 37,850 acres of land with a huge range of infrastructure facilities. 9,127 acres of land is still available in various industrial areas for allotment out of which 6,827 acres is available as undeveloped bulk land and 2,300 acres as developed land. UPSIDC has housed more than 6,000 units in various industrial areas which have provided direct employment to about 0.35 million persons. These units involve a capital outlay of over Rs. 150,000 million. 

Promotion of Infrastructure Projects : 

UPSIDC promotes industrial projects under its Assisted Sector Scheme, wherein it provides 10% to 15% of equity. 

Project Counselling : 

UPSIDC offers a complete range of project counselling services to prospective entrepreneurs desirous of setting up units in its industrial areas, including : 

  •  Assistance in identification of suitable projects. 
  •  Services of data banks and business information requirements. 
  •  Escort Services to offer suitable land in various Industrial Areas. 
Land as Equity : 

The objective is to provide land in the form of equity to the promoters setting-up their units in UPSIDC’s Industrial Areas situated in NIDs / Growth Centres / Slow Moving Areas for balanced industrial growth of the State. The quantum of assistance shall be limited to the maximum extent of the cost of the land acquired by the Company. The equity assistance shall be provided subject to overall restrictions that total equity of the Corporation in lieu of the cost of land in particular project shall not exceed 11% of the equity of the Company or Rs. 2.5 million, whichever is less. 

In addition to making available developed plots for industrial purposes, UPSIDC has a substantial land bank which is available in bulk for industrial/ commercial plantation, housing, tourism projects and other institutional uses at selected sites in the State. For large projects (with investment of more than Rs. 50 crore) in certain areas, equity participation by way of land contribution (upto 11 % of equity) would also be considered. The Corporation has so far developed 129 industrial areas in 56 districts. More than 5000 industrial units in the large, medium and small scale have been set up in these industrial areas, with an estimated investment of over Rs. 17,500 crores. 

Major Projects Undertaken by UPSIDC : 

Export Promotion Industrial Park :  One of the premier projects of UPSIDC,  at EPIP with excellent infrastructure has been developed as a complex of flatted factories and independent industrial plots, EPIP is about 35 Kms. from Delhi and spread over 200 acres of land. This will be a culmination of 450 units with a capital outlay of Rs. 600 crores. 

Software Technology Park (STP) : Realized in association with IIT, Kanpur, this software technology park will act as 100% export oriented resource centre for the member computer software exporting units, by offering general infrastructural facilities and high speed data communication facilities. It spans 25,000 sq. ft.

Leather Technology Park : As part of the State’s export policy, this project is being executed by UPSIDC. This park is being developed near the leather city of Kanpur on 300 acres at the cost of Rs. 24 crores for which land has already been acquired.

New Integrated Kanpur Industrial  Development Authority (NIKIDA) :  The most ambitious project of UPSIDC - NIKIDA is going to be a most modern integrated township adorned with industrial, business and residential sectors along with an international airport, resorts, express highways, golf courses, etc. In totality, NIKIDA will be established on an area of 1,50,000 acres of land. In the first phase an area of 60,000 acres is proposed to be acquired. 

Tronica City :  Part of the 3 industrial townships to be developed by UPSIDC, Tronica is a fast developing township on the outskirts of Delhi. This project will sprawl over 1300 acres of land at the cost of Rs. 230 crores. The city has been designed to present cool and serene environment friendly accommodation to 50,000 people. 

Apart from the above, a clutch of projects are in the planning/ development stages in various sectors with due emphasis on thrust areas. 

Integrated Infrastructure Development Centre (IIDC) :  UPSIDC is promoting IIDCs at Mathura, Unnao, Etah & Khurja on 50 acres of land with a project cost of Rs. 5 crores each. IIDCs are being developed under central government scheme for the development of small scale industries. These IIDCs will be in-built with warehouses, telecom networks, independent power feeders and the works. 

The Corporation continues to pay attention to balanced regional development of the State. In this connection it is implementing schemes announced by Central Government to facilitate establishment of industrial projects in industrially backward areas by providing the required facilities, both comprehensive and high quality. 

Development of Growth Centres : The Corporation is implementing 4 Growth Centres at Moradabad, Jhansi, Khurja and Shahjahanpur. Total investment in development of necessary infrastructure is expected to be Rs. 70 crores. 

UPSIDC to set up Industrial township near Loni :  UPSIDC is developing an integrated industrial township, “The Tronica City”, near Loni, an existing town in the North-Eastern periphery of Delhi. It is located on the Delhi-Saharanpur highway, on the bank of river Yamuna barely 2 Kms. from the Delhi border. It has accessibility from Delhi through Alipur bandh road and from Ghaziabad through Loni-Baghpat road. The project sprawls over approximately 1,600 acres of land. Its total cost is estimated at Rs. 320 crore. 

Infrastructure Policies : 

  •  Development of Infrastructure with private sector participation through Infrastructure Initiative Fund. 
  •  Comprehensive and rapid development of selected economic corridors with high quality infrastructural cilities. 
  •  Upgradation of existing Infrastructural facilities.
U. P. Infrastructure Initiative Fund (UPIIF) 

The cardinal purpose of the fund is to act as a vehicle for removing funding related bottle-necks primarily at the project definition and configuration stage in infrastructure privatisation. In addition to the cardinal purpose, the larger objective of UPIIF is to : 

  •  Identify, prioritize and define select infrastructure projects for private participation. 
  •  Channelise international expertise into preliminary project definition and configuration. 
  •  Analyse best practices and models followed, both on the domestic plane as well as in relevant foreign  countries. 
  •  Advise government and actively co-ordinate with concerned departments in formulating suitable policies and regulations. 
  •  Aid in pre qualification and selection of Project Developers, who would, in turn, carry the project development and implementation process forward to its logical conclusion; in this context, the fund would strive to build an active ‘Project Developers’ market in the context of the state. 
  •  Visualize possible impediments to private participation and suggest procedures for transparent and expeditious start-up of projects. 
  •  Provide a platform to communities/ local bodies/ governments to translate their vision into reality through taking up schemes for promoting economic growth and create/sustain jobs. 
The fund will be a State sponsored, “Revolving Fund” with seed capital contribution from the Government of Uttar Pradesh (GoUP). 

FUND DYNAMICS 

The size of the fund would be driven fundamentally by its role objectives in the pre privatisation cycle. 

The first tranche envisaged for the fund is of Rs. 10 crores as the seed contribution from the GoUP and its organisations. Further contributions, would be sought from infrastructure oriented financial institutions and multi-lateral agencies, which would also bring to bear their experiences in privatisation at national and international levels. 

FUND STRUCTURE 

The UPIIF would manage the corpus with support/ advice of a Project Development Company (“PDC”). It would recommend projects to be taken up including any concessions required for privatisation of these projects. 

The UPIIF would be driven by senior officials of the industries department/ infrastructure development departments/ agencies of the GoUP. The UPIIF would be the key interface between the government and the private sector developers. The PDC would be a private sector organisation with an understanding of infrastructure development and expertise in definition/configuration and “market making” for infrastructure projects. 

FUND HIGHLIGHTS 

  •  Fund to associate Multilateral Agencies and International Financial Institutions 
  •  Privatisation of infrastructure has been a major hurdle because of the long gestation period and huge investments. Incorrect exploitation and assessment of the projects has for a very long time kept the private bodies away from infrastructural projects. To encourage private sector groups’ participation, in major, infrastructure projects the State has set up an Infrastructure Initiative Fund. 
The Fund will 
  • Engage the services of expert agencies for examination of feasibility, formulation of major projects such as Express Highways, Bridges, Airports and Power Stations. Determine concessions required (if any) and selection of promoters. 
  • Special Purpose Vehicles (SPVs) will be established for implementation of selected projects. 

  • Multilateral Agencies and International Financial Institutions will be associated with infrastructure development through participation in this fund which will also use international expertise and know-how for the development of the state.