Uttar Pradesh IT and ITeS Policy 2022: Comprehensive Guide to Incentives and Benefits

Introduction

The Uttar Pradesh IT and ITeS Policy 2022 aims to transform the state into a global IT hub by enhancing infrastructure, fostering innovation, and providing a range of incentives to investors and stakeholders in the IT and ITeS sector.

Objectives

• Develop world-class IT infrastructure, including IT Parks and IT Cities.
• Promote innovation through Centers of Excellence (CoEs) in emerging technologies like AI, Blockchain, Big Data, Cloud Computing, and IoT.
• Enhance skill development and capacity building in the IT sector.
• Attract domestic and foreign investments in the IT and ITeS sector.
• Boost exports and generate employment opportunities across the state.

Financial Incentives

1. Capital Investment Subsidy

• 10% subsidy on Fixed Capital Investment (FCI), up to Rs50 crore.
• Applicable to new and expansion IT/ITeS units with a minimum FCI of Rs5 crore.
• Disbursed in annual installments over five years, with each installment not exceeding Rs10 crore.

2. Operating Expense Subsidy

• 10% reimbursement on operating expenses, including:
• Lease rentals (up to Rs50 per sq. ft. per month).
• Bandwidth expenses.
• Data center/cloud service costs (from UP-based service providers).
• Power charges.
• Available for a period of 5 years, capped at Rs20 crore per annum.

3. Land Cost Reimbursement

• 25% reimbursement on the cost of land, up to Rs50 crore.
• Subject to region-wise minimum employment criteria and continuous employment for one year.

4. Interest Subsidy

• % interest subsidy on term loans from scheduled banks/financial institutions, up to Rs1 crore per annum.
• vailable for 5 years from the commencement of commercial operations.

Stamp Duty Exemption

• 100% exemption on stamp duty for purchase/lease of land/office space/buildings for IT/ITeS use.
• Applicable to units commencing operations within stipulated time limit.

EPF Reimbursement

• 100% reimbursement of the total EPF amount paid for IT/ITeS professionals of Uttar Pradesh domicile.
• Applicable for Women/SC/ST/Transgender/Divyangjan employees.
• Up to Rs2,000 per employee per month, capped at Rs1 crore per annum for 5 years.

Recruitment Assistance

• Rs20,000 per employee for recruitment assistance.
• Applicable to new employees from Uttar Pradesh domicile, employed for a continuous period of one year

Incentives for Certifications

• Reimbursement of costs incurred on obtaining quality and IT-related certifications like CMM Level 2 and above, ISO 27001, ISO 20000, COPC, eSCM, etc.
• Maximum reimbursement of Rs25 lakh per unit for up to three certifications.

Patent Filing Cost Reimbursement

• 100% reimbursement of actual filing costs on awarded patents, up to Rs5 lakh.
• Applicable to units located within Uttar Pradesh.

Skill Development Support

• 50% reimbursement of course fees, up to Rs50,000 per candidate.
• Applicable to employees undergoing training in emerging technologies.

Policy Duration

The Uttar Pradesh IT and ITeS Policy 2022 is effective from November 19, 2022, and will remain in force for a period of 5 years or until a new policy is introduced.