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UP Pharmaceutical & Medical Device Industry Policy 2023

Incentives to Pharma units :-
Eligible units-
MSME Units As defined by Govt. of India
Large Units Capital investment more than MSME and less than INR 100 Crores
Mega Units Capital investment more than INR 100 Crores

Capital Subsidy @15% of investment upto Rs 200 Cr to be provided in 5 annual instalments
Interest Subsidies –
o @5% p.a. for 5yrs on loan taken for procurement of P&M, upto max Rs 1 Cr p.a. per unit; Addtl subsidy @2% p.a for 7yrs for units in Bundelkhand and Purvanchal Districts
o @5% p.a. for 5yrs on loan taken for building infra self-use, upto max Rs 1 Cr p.a. per unit;
o @50% p.a. for 5yrs on loan taken for Research quality improvement, upto max Rs 2 Cr. per unit;

Electricity Duty Exemption: 100% exemption for 10yrs
Stamp Duty exemption @100%
Waste Management incentives –
o Interest subsidy for loan taken to set up waste management setup @50% annual for 5 yrs upto max Rs 10 lakh;
o For setting up common boiler project: @35% (in case of solid fuel) and @50% (in case of clean fuel) of the fixed installation cost, upto Rs 2 Cr

Patent Filing – Reimbursement of 100% of actual filing costs on domestic patents and 50% of actual filing costs on international patents
Quality Certification – Reimbursement of 75% of cost incurred for ISO certification and 50% of cost incurred for BIS certification
Skill Development incentive as refund of stipend for training under NAPS & CMAPS for 6 months for a maximum of 10 trainees
Incentives for R&D and Innovations
For setting up R&D institutes – Reimbursement of 60% of annual interest on loan
For Clinical Trials – Reimbursement of 75% of total expenditure
For Contract / sponsored research – 50% subsidy on eligible project cost to institutes situated within UP
Special Package for units setting up at Bulk Drug Parks & Medical Device Parks
Interest subsidy: For 10 years to units established in Bulk Drug Parks/Medical Device Parks
Air Cargo handling and freight charges incentive: at rate decided by State Govt from time to time to transport raw material and finished goods in and out of the country
Incentives to Pharma Park –
Horizontal Pharma Park developed over min 10acres of land and Vertical Pharma Park developed over min 3 acres of land will be provided following –

• Interest Subsidies–
o @50% annual on loan taken to buy land for 7 years upto max. Rs 1 Cr per annum per park;
o @60% annual on loan taken to build infra for 7 years upto max. Rs 50 Cr per park;
o @60% annual on loan taken to build common facilities for 7 years upto max. Rs 30 crore per park
• Capital Subsidy: @25% of FCI (common infra & utilities) upto max Rs 25 Cr in 5years
Stamp duty exemptionat the rate of 100% to developers and 50% to units (1st)
• Grant for setting up CETP: @40% of project cost to set up CETP/ Waste Management System up Rs 10 Cr. Total support by GoI and GoUP shall not exceed 75% of the total FCI incurred in this purpose.

Other incentives

R&D incentivesincluding those for setting up R&D centres, clinical trials & executing research contract are at par to what other States are providing (Mostly, Guj. is adopted)
Start-up incentivesas per New Start-up Policy 2022, or may be omitted in the policy, as they will be covered under State Startup Policy 2022.