The Uttar Pradesh government has recently rolled out a strategic move to attract Fortune 500 companies to invest in Noida and Ghaziabad. The government has issued a notification, effective immediately, granting a substantial 50 % exemption on stamp duty and a full 100 % waiver on registration fees for these prominent multinational corporations, a TOI report stated.
Typically, stamp duty accounts for 5 % of the property cost, while the registration fee is fixed at 1 %. These exemptions align with the state’s 2023 policy aimed at fostering foreign direct investment (FDI) and enticing Fortune 500 companies to contribute to the economic development of the two National Capital Region (NCR) cities.
In the broader perspective, the state views Fortune 500 companies not only as major job providers but also as essential components in the value and supply chains crucial for building a robust industrial ecosystem.
Anil Kumar, Deputy Commissioner (Industries), told TOI, “We are yet to receive applications under the new policy of a 50 % rebate in stamp duty, but Microsoft, a Fortune 500 company, is already in the process of developing its office in Noida.”
Vipin Malhan, President of the Noida Entrepreneurs Association, echoed the sentiment, highlighting Noida’s strategic advantages such as proximity to the national capital, availability of skilled employees, and effective law enforcement. He affirmed that the stamp duty and registration fee exemptions would further enhance investment and stimulate industrial growth in the region.
The notification, issued by Leena Johri, Principal Secretary (Stamp and Registration), on December 22, 2023, also extends a significant 75 % reduction in stamp duty for Fortune 500 companies in Madhyanchal and Paschimanchal (excluding Gautam Budh Nagar and Ghaziabad) and a complete 100 % exemption in Purvanchal and Bundelkhand areas.
This move follows the state cabinet’s approval on October 31 of the new foreign direct investment policy, designed to provide incentives in critical areas like land acquisition, stamp duty, and capital investment, aimed at attracting international investors. In November, the government granted the first letter of approval for land subsidy under the new FDI policy to Fuji Silvertech Concrete, a special purpose vehicle dedicated to manufacturing precast concrete products utilizing wet cast technology and sulfur concrete technology. The proposed project, covering an area of 25 acres under the Yamuna Expressway Industrial Development Authority, anticipates offering direct and indirect employment to 700 individuals, marking a significant stride in the state’s economic landscape.
