Samsung to invest Rs 4,825 cr to shift China factory to India
The Uttar Pradesh government on Friday said that it has decided to give special incentives to “Samsung Display Noida Private Limited” which is investing Rs 4,825 crore, for setting up a manufacturing unit of mobile and IT display products in the state.
A decision to this effect was taken at the meeting of the state Cabinet headed by Chief Minister Yogi Adityanath here on Friday.
“The unit intends to invest Rs 4,825 crore. It could be made possible by the sustained efforts of the UP government to create an eco-system in NCR in sync with the intent of the Centre to make an export hub in view of the ever-increasing demand of mobile and other gadgets in the country and abroad,” the government said in a release.
This is the first high-technique project of the South Korean multinational major which is being set up in
India after relocating from China and the country will become third in the world to have such a unit, the Uttar Pradesh government said.
During the last financial year, Samsung, with 2.7 billion dollars of export, is the largest exporter of Uttar Pradesh. It has set an export target of 50 billion dollars during the next five years. As per the “UP Electronics Manufacturing Policy 2017’, Samsung will get exemption of stamp duty in the transfer of land. The state government will have to make a financial provision of Rs 250 crore for this project for five years.
The company will also receive a financial incentive to the tune of Rs 460 crore under the Government of India’s “Scheme for Promotion of Manufacturing Electronic Components and Semiconductors (SPECS)”. It is to be mentioned that more than 70 percent of the total display products used in TVS, mobile phones, tablets, watches, in the world are manufactured by Samsung in South Korea, Vietnam, and China.
The project will provide Uttar Pradesh a global identity of the export hub, and will help the state receive more Foreign Direct Investment. The manufacturing unit of Samsung has been projected to generate direct employment of 510 persons besides giving indirect employment to the hundreds, the government said.
This is the first high-tech project of the South Korean multinational major which is being set up in India after relocating from China and the country will become third in the world to have such a unit, the Uttar Pradesh government said.
The government which has been holding a 87.40% equity stake in IRCTC has decided to reduce its stake in the company to below 75% to meet SEBI’S public holding norms as well as help the government in meeting its disinvestment target.
The company proposes to sell via OFS up to 24 million equity shares representing a 15% stake with an option