Starting with the IT and ITeS Policy of UP 2022, The Volt Post in this series of policy-driven articles will strive to unearth state-wise the policies and amendments of the IT and ITeS sector. Several states have published their IT and ITeS Policy across the country and so has the UP Govt. State government aimes to promote vigorously the IT and ITeS sector by publishing an IT and ITeS Policy of UP 2022.
The IT and ITeS sector in UP has been momentous. Consisting of over 16.5 per cent of the total population of India, the dynamic demographic and lucrative positioning of UP make the state a potential pinnacle technology hub. Lately, the UP Government has well understood the growing nature of the IT and ITeS sector, therefore it has been amending lucrative policies favouring the IT and ITeS sector and more lately the semiconductor manufacturing industry.
Uttar Pradesh has been providing a best-in-class infrastructure and education opportunities, including IIT Kanpur, IIT(BHU) Varanasi, MNNIT Allahabad and IIIT Allahabad.
Here we bring a complete overview of the IT and ITeS sector in UP and the benefits and leverages the UP Govt. is giving under the IT and ITeS Policy of Uttar Pradesh 2022.
The Volt Post strives to apprehend the policy discourse and also concoct the UP Govt robust ecosystem enabling a sustainable IT and ITeS and semiconductor industry in UP.
IT and ITeS Policy of Uttar Pradesh 2022 affirms to encourage collaboration towards creating a technological shift in the state through the establishment of IT Cities, IT Parks and Centers of Excellence in emerging technologies such as AI, Blockchain, Big data, Cloud computing and IoT. It proposes to enable a conducive regulatory landscape to accelerate innovation and drive innovation-specific funding, build strong industry-academia collaboration in line with global best practices and dedicated innovation hubs with best-in-class infrastructure. In congruence with the Hon’ble Prime Minister’s vision of ‘Digital India’ and ‘Reform, Perform and Transform’, the UP Govt is transforming itself into a digitally empowered society and knowledge economy, thereby paving its way to become a dream destination for investments in line with its goal to become a $1 trillion economy by 2027.
In terms of ‘ease of doing business’ rankings UP has made a significant position. The state has been bringing the implementation of several reforms spanning labour regulation, land administration, access to information and transparency, online single window and construction permits.
Udyog Bandhu – An Investor Guidance To Establish Business
Udyog Bandhu, a dedicated state government body, provides necessary assistance for investors planning to establish their business in the state.
Nivesh Mitra – A Dedicated Single Window Clearance Portal
Also, Nivesh Mitra – a dedicated single window clearance portal offering 353 services from 29 departments, has been instituted to facilitate faster and time bound issuance of various approvals. The portal has successfully cleared about 7.7 Lakh applications within the stipulated time.
IT and ITeS Policy of UP 2022 Aims To Achieve The Following Objectives:
- Infrastructure: Facilitate the development of best-in-class infrastructure for IT/ITeS sector to meet the growing demand for innovative and advanced technologies by developing IT Parks, IT Cities in the state
- Innovation: Encourage innovation ecosystem by providing an enabling mechanism in the form of access to mentors, establishing CoEs and promoting R&D with a focus on emerging technologies
- Capacity Building: Enhance the skill levels of existing and young workforce on next generation technologies (such as Data Analytics, Internet of Things, Virtual Reality, Artificial Intelligence, Machine Learning etc.) and develop an industry-ready talent pool
- Investments: Promote investor facilitation and make UP a preferred investment destination for technology companies and attract domestic as well as foreign investments during the policy period
- Exports: Boost export potential of the state’s IT/ITeS sector to contribute substantially more to India’s exports in this sector including providing single window clearance for the units setting up in STPIs within Uttar Pradesh
- Employment: Generate state-wide direct and indirect employment opportunities by offering special incentives to boost local employment
- Regional Development: Drive IT penetration and balanced regional development through additional incentives for setting up IT/ITeS units across the state
The State Government shall provide impetus to the IT ecosystem by supporting the development of ready to occupy workspaces at an easy-to-commute location, that will allow IT/ITeS units to immediately commence their operations within the state.
IT and ITeS Policy of UP 2022 Proposes to Undertake the Following Initiatives to Develop Infrastructure in the IT Sector:
IT Park under The New IT and ITeS Policy of UP 2022
The UP Govt will extend financial assistance towards the development of one greenfield IT Park in every revenue division of the state asserted in the IT and ITeS Policy of UP 2022. The financial assistance will not given in the districts of Gautam Buddh Nagar and Ghaziabad. IT parks proposed in an administrative division under the Taj Trapezium Zone (TTZ) will be developed in districts coming under Taj Trapezium Zone (TTZ). Capital expenditure support will be provided for the creation of IT Park within each revenue division on a first-come-first-serve basis. Incentives for any additional IT parks shall be reviewed by the empowered committee and dealt with on a case-to-case basis.
Key Support by the UP Govt to Develop IT Parks
A one-time support of 25% of the eligible capital expenditure incurred for the development of the IT Park shall be provided subject to a maximum support of Rs.20 Crores says the New IT and ITeS Policy of UP 2022.
Capital expenditure shall comprise expenditure incurred on building construction and infrastructural facilities, excluding the cost of land.
80% of the above incentives will be provided in four instalments based on expenditure incurred at 25%, 50%, 75% and 100% of total project cost.
The final 20% will be released after 50% of built-up floor area has been allotted/leased out to the units for their commercial operations.
100% exemption on stamp duty will be granted on the purchase/lease of land by the developer.
The UP Govt will provide support for development of external infrastructure facility
i.e. Roads (by Public Works Department), Electrical Infrastructure (Energy Department). Support shall also be extended in obtaining building clearances.
Floor Area Ratio (FAR): FAR 3 and 1 (Purchasable, as per building by-laws prevalent at that time) applicable to IT parks.
An Empowered committee will take a final decision on the IT parks that qualify for the applicability of these incentives.
A consortium of developers will also be allowed.
Preferential land allotment on a fast-track basis will be done as per the policy provisions, terms & conditions of UP Industrial Investment and Employment Promotion Policy 2022.
IT Parks which host co-working spaces will also be eligible for the above incentives.Semiconductor Mfg and IT and ITeS Policy of UP 2022
Further Details: https://invest.up.gov.in/it-and-ites-policy-of-uttar-pradesh-2022/
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