Samsung to pump 4,825 crore to relocate production unit to India

Samsung has decided to invest Rs 4,825 crore to relocate its mobile and IT display production unit to NCR in Uttar Pradesh from China, the state government said.

The UP government’s cabinet has approved special incentives to Samsung Display Noida Private Limited on Friday.

"This is the first high-technique project of South Korea's multi-national 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 UP government’s spokesperson said in a statement.

Samsung currently makes more than 70 percent of the total display products used in TVs, mobile phones, tablets, watches, etc., in the world in South Korea, Vietnam and China.

Samsung along with Apple partners Foxconn, Wistron and Pegatron recently received approval from the Indian government under the production-linked incentives scheme. All these multinational companies were approved to avail incentive for producing mobile phones with invoice value Rs 15,000.

Samsung was the largest exporter of Uttar Pradesh with $2.7 billion dollar of export in the last fiscal. 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 transfer of land. The state government will have to make financial provision of Rs 250 crore for this project during five years.

Samsung will also receive financial incentive to the tune of Rs 460 crore under Government of India's Scheme for Promotion of Manufacturing Electronic Components and Semiconductors (SPECS), the state government said