Lucknow: The 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 in Lok Bhavan, the amendment was approved in the Incentive Policy 2023 for investment of FDI and Fortune 500 companies.
Through this amendment, the Yogi government has given great relief to foreign investors. Through this, now such foreign companies will also be able to invest in the state which arrange money from equity as well as loan or any other source. With this decision of the Yogi government, foreign investment is likely to increase in the state.
Foreign capital investment included: Giving information about the decisions of the Yogi Cabinet, Finance and Parliamentary Affairs Minister Suresh Khanna said that the Foreign Direct Investment (FDI) policy came on 1/11/2023, it has been slightly amended.
The minimum limit of investment 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 companies manage money from outside loans as well as other means to grow their business. We have allowed that too. If a company has only 10 percent equity and 90 percent of the investment amount has been arranged from other sources, then we will also provide benefits to it.
Investment of Rs 100 crore will be considered eligible: He said 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. Preference shares, debentures, external commercial borrowing, stand by letter of credit, letters of guarantee and other debt securities have also been included for foreign companies investing in equity as foreign capital investment. Apart from this, other modes which will be eligible for calculation of foreign investment of Rs 100 crore made by RBI under the Framework on External Commercial Borrowing, Trade Credit, Structured Obligations. The amount of foreign capital investment made by the foreign investor company (including minimum 10 percent in equity and the remaining Rs 100 crore invested through debt and other instruments) will be considered eligible under this policy and will be included in the calculation of capital investment.
Gratuity can be paid even without a nominee: The Yogi government has also approved the proposal to amend the 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 any family behind nor has made any nominee, then gratuity can be paid to the person in whose favour a succession certificate has been provided 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.
