Information Technology Policy Overview
Sector Overview :
The UP Information Technology Policy 2022 is not just a policy document; it is a testament to Uttar Pradesh’s commitment to becoming a leader in the IT and ITeS industry. By providing a wide range of fiscal incentives and highlighting the Bundelkhand region for targeted development, the policy creates an attractive ecosystem for IT ventures. Investors and companies are encouraged to leverage this unparalleled opportunity to be at the forefront of technological innovation and economic growth in Uttar Pradesh.
Sector Overview
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- More than 40 IT/ITES Parks and 25 SEZ IT/ITES.
- 167 million Subscribers of Wireless and Wireline constituting 14% India’s total subscribers.
- 13 proposed Smart cities and 9 incubators supported by Govt.
- Develop a smart IT city in Bundelkhand region.
Objectives
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- Develop and promote attractive business ecosystem in the State.
- Promote human development and infrastructure development by means of IT Cities, IT Parks, IT-BPM units.
- Instil and nourish entrepreneurship and innovation by providing impetus to Start-ups, Incubators, Centers of Excellence.
- Lead digital empowerment through creation of citizen centric services, whereby welfare is generated across all sections of the society.
Enablers
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Abundance : of skilled labour available at competitive cost.
E-Governance reforms : swiftly implemented by the state, more than 62 citizen centric services made online to ensure effective delivery of public services.
Govt Schemes Viz. : National Rural Internet, SEZ Policy, Digital India Mission.
Liberal FDI Regimes : 100% FDI allowed through automatic route (data processing, software development, market research services etc).
Investment and Fiscal Incentives
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The IT/ITeS Policy is designed to transform the region into a global tech hub through the establishment of Centers of Excellence (CoE). These centers will bolster research, innovation, and entrepreneurship within the IT and ITeS sectors by offering substantial incentives. Here's a breakdown of these key benefits:
- Interest subsidy @5% per annum for a period of 7 years.
- Stamp Duty@100% exemption on purchase/lease of land/office space/ buildings for IT/ITeS use with condition of commencing operations within 3 years.
- Electricity Duty@100% reimbursement for new IT/ITeS units for a period of 10 years post commencement of commercial operations.
- Incentive for Certification : Maximum reimbursement of 3 certifications with total limit of INR 25 lakhs per unit.
- Grant on EPF@100% reimbursement of the total EPF amount paid for IT/ITeS Professionals of Uttar Pradesh domicile with employment for continuous 1 year, after start of commercial operation.
- Recruitment Assistance of INR 20,000 per employee located in Tier-II and Tier-III cities subject to continuous employment of minimum 6 months and annual recruitment of at least 50 students in the field of IT-BPM, recruited from UP based colleges.
- Patent Filing Cost to be reimbursed on awarded patents.
- Recruitment Assistance of INR 20,000 per employee located in Tier-II and Tier-III cities subject to continuous employment of minimum 6 months and annual recruitment of at least 50 students in the field of IT-BPM, recruited from UP based colleges.
- Provision for land : Reimbursement up to 25% of the cost of purchase of land from State Agencies subjected to certain conditions.
- For promoting ‘Ready to Move In’ facility: Incentives on case to case basis shall be given to developers for establishing more than 5 acres IT Park in Tier-II & Tier-III cities.
Special Incentives for Bundelkhand :
In addition to the incentives mentioned above, IT/ITeS units in Bundelkhand region shall also be eligible for additional incentives
- Rebate on Lease/Rental Space up to 50% of lease /rental charges on the space for IT/ITeS units with maximum limit of INR 20 lakhs per year, for a period of 3 years from the date of commencement of commercial operations.
- Power subsidy of 50% on power bills for a period of 3 years from the date of commencement of commercial operations, subject to a maximum limit of INR 50 lakhs.
- Capital Subsidy amounting to 50% of one time capital expenditure incurred on every seat under India BPO Promotion Scheme.
- Additional 50% shall also be given to startups having registered offices/operations in Purvanchal/ Bundelkhand regions or cofounders hailing from Economically Weaker Sections (EWS).
- Incubators are supported with Capital grant on setting up/scaling up technology infrastructure up to maximum INR 1Cr or INR 1.25cr if they are established in Purvanchal/Bundelkhand regions.
