IT/ITeS Companies

FISCAL INCENTIVES

This incentive is admissible to new IT/ITeS units in Tier II and Tier III cities of Uttar Pradesh for period ending on 31st March 2017.

Government of Uttar Pradesh promotes the startup culture using INFUSE model. An initial INR100 Crore Startup Corpus Fund has been established to provide financial and non-financial incentives to startups working towards innovations in the field of IT/ITeS and related sectors.

Interest Subsidy

An interest subsidy of 5% per annum for a period of 7years on the rate of interest paid on the loans obtained from Scheduled Banks/ Financial Institutions shall be reimbursed subject to a maximum of Rs. 1 crore per annum per unit

Stamp Duty

100% exemption of stamp duty on purchase/lease of land/office space/ buildings for IT/ITeS use with condition of commencing operations within 3 years

Exemption of Electricity Duty

100% exemption on Electricity duty for new IT/ITeS units for a period of 5 years post commencement of commercial operations

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Incentives for Certifications

Reimbursement of the cost incurred by an IT/ITeS Company operating in the State on successfully securing quality & IT related certifications such as Capability Maturity Model (CMM) level 2 upwards, ISO 27001 for security, ISO 20000 for service management terminology, COPC, eSCM certification with maximum reimbursement of 3 certifications with total limit of 25 lakhs per unit. The similar certifications related to this sector shall be included from time to time.

Grant on EPF for Employment generation

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, subject to the Maximum of INR 20 Lakhs per annum for 5 years for a unit.

Industrial promotion Subsidy

Industrial Promotion Subsidy equivalent to 50% of the incentives admissible for new units (except rebate on land purchased from State Agencies) would be admissible to the existing units, if additional capital investment for capacity enhancement to the extent of 25% or more made in period of 2 years by the IT units with turnover of more than or equal to INR 100 crores.

NON-FISCAL INCENTIVES

Exemption from the purview of the UP Pollution Control Act, except in case of power generation sets of capacity of more than 25 KVA for IT/ITeS Industry.

Exemption for IT/ITeS Industry from inspections under the following acts and rules framed there under, barring inspections arising out of specific complaints.

The IT/ITeS industry are permitted to file self certifications, in the prescribed formats for

  • The Factories Act
  • The Maternity Benefit Act
  • The Shops & Establishments Act
  • The Contract Labour (Regulations & Abolition) Act
  • The Payment of Wages Act
  • The Minimum Wages Act
  • The Employment Exchanges (Compulsory Notification of Vacancies) Act
Uninterrupted Power Supply

IT units setup in IT Cities / IT Parks on Independent Feeder shall be provided uninterrupted power supply from State Utility. The cost of provision of separate Feeder and separate Transmission Line will be borne by the developer.

24×7 Operations

Permission to IT and ITES companies to have 24×7 operations (to run in three shifts) and employment of women in all three shifts

Applicability of Industrial Tariff

Industrial Power tariff will be applicable to all IT/ITeS units from the effective date of this policy.

fiscal

OTHER INCENTIVES

Provision for Land

Rebate of 25% on the prevailing sector rates shall be provided to IT/ITeS units on purchase of land from state Agencies.

Floor Area Ratio(FAR): FAR 3 and 1 (Purchasable, as per building by-laws prevalent at that time) applicable to IT/ITeS units including IT City and IT Park

IT/BPO units which employ a minimum of 20 people and a maximum of 50 people shall be allowed to establish anywhere irrespective of the master plan or Land use classification, barring public places, semi-public facilities, traffic and transport, parks and open spaces, green belt and agricultural land usage.

Incentives on Case to Case Basis

IT/ITeS Mega Unit investments projects with the proposed investment of more than INR 200 Crores shall be considered for special incentives.
In order to promote ‘Ready to Move In’ facility for IT/ITeS companies in the state, IT Infrastructure Private developers with IT Infrastructure development experience of more than 10 acres or investment of more than INR 200 Cr. in last 5 years may be considered for incentives on case to case basis for establishing more than 5acresIT Park in Tier-II & Tier-III Cities in the state. The incentives shall be made available to the developer on the condition of 75% utilization of FAR for IT facility for 10 years from the date of commercial operation.