The Yogi Adityanath-led government has made a strategic move to attract foreign investment in Uttar Pradesh by amending the Foreign Direct Investment (FDI) policy. During a cabinet meeting on Monday at Lok Bhavan, the state approved changes to the Incentive Policy 2023, aiming to facilitate investment from FDI sources and Fortune 500 companies. This policy update provides significant flexibility for foreign investors by allowing investments through various funding channels beyond equity.
Expanding Investment Options Through FDI Policy
Finance and Parliamentary Affairs Minister Suresh Khanna explained the amendment. Now, companies can qualify under the policy with a minimum investment of Rs 100 crore, even if only 10 percent of the capital is from equity. The remaining investment can come from other funding options, including loans or structured financial instruments.
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New Pathways for Foreign Capital
The updated policy includes foreign capital investments via preference shares, debentures, external commercial borrowings, and other debt securities. Under the new guidelines, foreign investors can access benefits for investments meeting the Rs 100 crore requirement, regardless of the funding structure.
This move aligns with the Yogi government’s goal to increase foreign investment in UP, aiming to make the state a more attractive destination for international capital and business growth.
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