Uttar Pradesh Expands Stamp Duty Benefits for Bioplastic Industry
In a significant move to boost industrial growth, the Uttar Pradesh stamp and registration department has approved a major expansion of stamp duty exemptions for the bioplastic sector. Acting on proposals from industry bodies, the department has now granted approval for up to 100% exemption on stamp duty charges for non-anchor bioplastic units across the state.
Policy Evolution and Background
This decision marks a substantial shift from the previous framework where such exemptions were exclusively reserved for anchor units. The original Uttar Pradesh bioplastic industry policy, introduced in October 2024, primarily focused on providing large-scale incentives to anchor units that serve as foundational establishments driving industrial growth in their respective regions.
"As per the original policy document, an anchor unit that comes up with an investment portfolio of Rs 1,000 crore was eligible for the incentives and subsidies," explained a government official. "Anchor units are large foundational establishments that act as the engine for the growth of the industry in the given area."
Expanded Benefits Across Regions
To create broader industrial opportunities in designated locations, the government has decided to extend these benefits to other units as well. The department has issued specific instructions to sub-registrars executing sale deeds for land transactions, outlining a tiered exemption structure:
- 100% exemption for bioplastic manufacturing projects in Purvanchal and Bundelkhand regions
- 75% exemption in western Uttar Pradesh districts (excluding Ghaziabad and Noida)
- 50% exemption specifically for Ghaziabad and Noida
Strategic Implications
This policy expansion represents a strategic effort to decentralize industrial development and encourage bioplastic manufacturing across diverse regions of Uttar Pradesh. By extending stamp duty exemptions beyond anchor units, the government aims to attract a wider range of investments and foster a more inclusive growth environment for the emerging bioplastic sector.
The move is expected to significantly reduce the initial setup costs for bioplastic manufacturers, making Uttar Pradesh a more attractive destination for both domestic and international investors in this sustainable industry segment.
