The Yogi Adityanath government in Uttar Pradesh has signed an MoU with IKEA, the largest furniture and home applications company of the world, which will invest Rs 5500 crore in Uttar Pradesh during the next five years.
The state government has provided 50,000 square metres of land in Noida for an IKEA outlet which will be one of the biggest ones.
The MoU with IKEA was signed virtually in the presence of Chief Minister Yogi Adityanath on Friday.
The company has already made payment of Rs 850 crore for land in Noida while the state government earned revenue of Rs 60 crore through stamp duty .
IKEA, which has opened more than 433 centres in 52 countries of the world, is preparing to invest big in UP.
Starting with Noida, IKEA plans to open at least three major outlets in Purvanchal and central UP. The plans for other outlets will be finalised with the opening of Noida centre.
The company will start all its outlets by 2025 according to the state government spokesman.
According to experts, the company will sell its products online as well as open franchises and showrooms in different cities, through which a large number of people will get the opportunity of trade and employment.
In December 2018, the company had signed an agreement with the Uttar Pradesh government to invest Rs 5,000 crore in Noida and other cities of the state.
IKEA started its first centre in Hyderabad at a cost of Rs 700 crore in 2016. IKEA plans to open a total of 25 centres in India by 2025 by investing Rs 10500 crore. About half of the investment will be made in UP alone.
Apart from the investment, this venture will generate direct and indirect employment of about 50,000 in the next five years. The company will take services of local artisans and workers in its venture which will create another ecosystem of jobs at the local level also.
(This story has been published in an arrangement with IANS)
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)