The state government of Uttar Pradesh wishes to promote the manufacturing of electric vehicles in the state by improving the skills of the workers involved in the process. For this, the UP government has announced a new skill development subsidy for private EV manufacturers. Under this, the companies involved in EV production in the state shall be offered a one-time subsidy of Rs 5,000 per employee for a year, when these employees are enrolled in a skill development program for EV production.
An official statement by the state government of UP shares more details on the subsidy program. As per the statement, the EV policy of the UP government shall now offer a skill development subsidy to private companies for honing the skills of their employees involved in EV manufacturing. The program offers private companies a subsidy in the form of reimbursement of stipend. The subsidy shall be worth Rs 5,000 per employee every year, for a maximum of 50 employees. A subsidy will also be paid for the training of up to 10 employees in a particular year.
There are, of course, certain terms and conditions that come with the subsidy program. For instance, the incentive will only be provided to employees who have been in the manufacturing unit of the company for a period of 12 months prior to joining the training program. Another condition applicable to the program states that the subsidy will only be applicable to the training programs which are certified by National Skill Development Corporation or Uttar Pradesh Skill Development Mission or any Central/State University/College or ITI/Polytechnic.
The subsidy under the UP EV policy shall be handed out to the eligible companies on a first come, first serve basis, only after the commencement of commercial production as per the provisions in the UP EV policy. Another guideline clears that the aggregate of all financial incentives for manufacturing projects under the EV policy should not exceed 100 percent of the fixed capital investment of the firm.
In its statement, the government of UP also sheds light on the interest of foreign EV players in establishing a presence in the state. It mentions a large investment coming from a Hong Kong-based firm that goes by the name of ‘Tauschen International Ltd’, a part of the Tauschen Group of Companies. Other companies showing a similar interest include RG Strategies Group and Cosis Group, both of which have signed major investment agreements in the EV sector in Uttar Pradesh. Such interest has also been shown by many other firms for setting up manufacturing units in the state.