Uttar Pradesh Pioneers FDI-Led Manufacturing Growth with Land Subsidy Approval
In a groundbreaking move under the newly implemented Foreign Direct Investment Policy 2023 (FDI 2023) in Uttar Pradesh, the Yogi Adityanath-led UP government has announced its decision to grant a front-end land subsidy to the first company.
In an official communique, the state government shared that Infrastructure and Industrial Development Commissioner, Manoj Kumar Singh, issued a letter of approval and eligibility certificate for the front-end land subsidy to Fuji Silvertech Concrete (FSCPL). This development marks the inaugural case of land subsidy approval following the recent endorsement of the Uttar Pradesh Foreign Development Policy by the Yogi Cabinet.
According to the letter of approval sent to the Managing Director of FSCPL, the evaluation committee of Invest UP evaluated the proposal in its meeting on 22 November 2023.
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 to grant 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 project, set to be established in Yamuna Expressway Industrial Development Authority (YIDA), focuses on manufacturing precast concrete products using Wet Cast Technology and Sulphur Concrete Technology. Phase-1 of the project will boast an installed capacity of 650 TPD, with Phase-2 adding an additional capacity of 350 TPD. The combined project cost for Phase-1 and Phase-2 stands at Rs 300 crore. Phase-1 is expected to generate direct and indirect employment for around 700 people.
In terms of financial structure, the foreign capital for Phase-1 is Rs 100 crore (Rs 85 crore through Standby Letter of Credit and Rs 15 crore through equity), while the Indian promoter will contribute Rs 50 crore (including Rs 10 crore as equity and a loan of Rs 40 crore).
Fuji Silvertec Concrete (FSCPL) is a Special Purpose Vehicle (SPV) formed to establish and operate manufacturing facilities for precast concrete products in India. The company's facilities will be based on wet cast technology and sulphur concrete technology, leveraging the expertise of joint venture partners Fuji Concrete Industry (FCICL) and Toyota Kokhi (TKCL), both with a legacy of more than 50 years in Japan.
Fuji Japan, with cutting-edge technology and a century of collective experience, already operates two plants in India—one in Bagodra, Gujarat, and the other in Aurangabad, Maharashtra. The proposed manufacturing plant at YEIDA will mark FSCPL's first manufacturing unit in North India.
