Inspired by the Chinese model, the policy got approval of the state cabinet after Chief Minister Akhilesh Yadav pushed for it.

In the initial phase, the government plans to establish and promote small electronic manufacturing clusters. One of these would be set up in Greater Noida, while the process of identifying other two cities is underway, the official said here.

The clusters would be set up in 100 acres of land and ideally be close to markets for better sale.

The state government has also announced concessions for the companies that are interested in opening up bases in these clusters, said the official.

The state cabinet has approved 15 percent capital subsidy for those investing up to Rs five crore.

A five percent rebate on interest up to seven years of the loan amount, and concessions in stamp duty will also be given to such entrepreneur, the official said.

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