In a significant move, the Uttar Pradesh Cabinet has approved a key proposal to reopen closed cinema halls across the state.
The Cabinet also endorsed the Integrated Incentive Scheme to promote the construction of multiplexes in districts lacking the facility, as well as to encourage the development of single-screen cinema halls and the modernization of operational ones. This scheme will remain in effect for five years.
Finance and Parliamentary Affairs Minister Suresh Khanna informed here on Tuesday that the Integrated Incentive Scheme is being implemented for the reconstruction/remodeling of closed single-screen cinema halls and operational ones, as well as for the construction of multiplexes and the upgrade of cinema halls in districts without multiplexes.
The proposed grant will be given from the SGST deposited in the treasury by the cinema halls/multiplexes, ensuring no additional financial burden on the state government.
The following seven grants will be provided:
1. 100% of the SGST collected for the first 3 years and 75% of the SGST collected for the next 2 years for building a commercial complex and modern cinema by demolishing a closed or operating cinema within 5 years from the date of issuance of the scheme.
2. 75% of the SGST collected for the first 3 years and 50% of the SGST collected for the next 2 years for re-operating a closed or operational cinema building by making changes in its internal structure within 5 years from the date of issuance of the scheme or for increasing the number of screens.
3. 50% of the SGST collected for the first 3 years for re-opening a closed single-screen cinema hall by obtaining a license from the District Magistrate by 31 March 31, 2025 without making any changes in its internal structure.
4. For constructing a single-screen cinema hall with a minimum seating capacity of 75, with or without commercial activities, 100% of the SGST collected for the first 3 years and 50% of the SGST collected for the next 2 years.
5. In districts where no multiplex is built/operated, 100% of the SGST collected for 5 years for opening a multiplex.
6. In districts where multiplexes are built/operated, 100% of the SGST collected for the first 3 years and 50% of the SGST collected for the next 2 years for construction of a new multiplex.
7. For upgradation of cinema hall/multiplex, an amount equivalent to the SGST collected will be admissible up to the limit of 50 per cent of the actual amount invested.
Meanwhile, the UP government has decided to grant industry status to the Information Technology (IT) and Information Technology-enabled Services (ITeS) sectors. Finance Minister Suresh Khanna emphasized the need for transformational reforms to support the rapid growth of these sectors.
These reforms aim to grant “Industry” status to the IT and ITes sector. Allotment of land at industrial rates to units in the IT/ITeS sector from land classified under the Industrial category in Residential Development Authorities and Industrial Development Authorities will facilitate land availability to IT/ITeS units.
Additionally, providing power at industrial rates to newly operational IT/ITeS units with a minimum load of 150 KW will enhance profitability and attract further investments in Uttar Pradesh’s IT/ITeS sector.
This reclassification is expected to result in approximately 18 per cent savings in power costs for the sector based on current rates in Uttar Pradesh.