Uttar Pradesh outlines incentives under IT and ITeS policy 2022
The state framework aims to attract technology units and expand infrastructure beyond the National Capital Region.
The Uttar Pradesh Department of IT and Electronics notified the IT and ITeS Policy of Uttar Pradesh, 2022, to attract technology-enabled service operations to the state. According to a report by Business Standard, the policy targets new and expanding units, IT parks, IT cities, and research facilities.
To qualify as a new unit, a company must make a minimum fixed capital investment of Rs 2 crore. However, the main capital subsidy requires a minimum investment of Rs 5 crore. This subsidy is set at 10 per cent of eligible fixed capital investment, with a maximum limit of Rs 50 crore.
The state offers several other financial benefits, including a 25 per cent land cost rebate capped at Rs 50 crore and a 100 per cent stamp-duty exemption on qualifying buildings or office space. Additionally, an interest subsidy of 7 per cent per year is available for five years, up to Rs 1 crore per unit annually.
Operating-expense subsidies are also provided at 10 per cent of eligible costs, such as lease rentals and power charges. The policy seeks to encourage investment in cities like Lucknow, Kanpur, Prayagraj, Agra, Varanasi, Gorakhpur, and Meerut to move activity beyond Noida and Greater Noida.
The Uttar Pradesh Electronics Corporation Limited serves as the nodal agency for the policy. Applications for these incentives are managed through an online system linked to the state's investment-facilitation platform.