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Uttar Pradesh Global Capability Centres (GCC) Policy
Uttar Pradesh Global Capability Centres (GCC) Policy

May 21, 2025

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The government of UP has issued the GCC policy for the state. The policy states that there are various advantages that the state of UP offers for becoming a preferred destination for GCCs. These include sectoral advantage, enabling infrastructure, access to talent, innovation ecosystem and favourable investment climate.

 

The strategic objectives of the Uttar Pradesh GCC policy are designed to foster an environment conducive to the establishment and growth of GCCs. The strategic initiatives include world class infrastructure, Hub-Spoke operating model, enhancing financial attractiveness, skill alignment with industry needs, improving business environment, risk mitigation and sustainability and maximising economic impact.

 

Some of the incentives offered by the govt are:

 

  1. Front end land subsidy shall be provided to eligible units on allotment of land from any State Industrial Development Authority, Development Authority, Urban Local Bodies or any other Govt agency at following rates:
    1. 30% in Gautambuddha Nagar & Ghaziabad districts
    2. 40% in Paschimanchal (except Gautambuddha Nagar & Ghaziabad) & Madhyanchal region
    3. 50% in Poorvanchal & Bundelkhand region

 

  1. 100% Exemption/ Reimbursement of Stamp Duty on purchase/lease of land/office space/ buildings for the proposed project.

 

  1. Capital Subsidy at the rate of 25% of ECI maximum up to Rs 10 Cr. to the Level-1 GCC unit and upto Rs 25 Cr. to Advanced GCC unit in 7 equal annual instalments post commencement of commercial operations within eligible investment period. The eligible unit shall have option to avail Refund of SGST on Capital Goods.

 

  1. Interest Subsidy at the rate of 5% per annum on the term loan or the actual interest paid, whichever is lower on the loan taken for construction & procurement of plant & machinery and setting up other infrastructure facilities at the project site, obtained from Scheduled Banks/ Financial Institutions subject to a maximum of Rs. 1 crore per annum per unit for a period of 5 years from the commencement of commercial operations.

 

  1. Operational expenses (Opex) Subsidy at the rate of 20% on Operating expenses covering Lease rentals, bandwidth expenses, data center/ cloud service cost and power charges subject to maximum Rs 40 Crores per annum to Level-1 GCC units and upto maximum Rs 80 Crores to Advanced GCC units for a period of 5 years post commencement of commercial operations.

 

  1. Payroll subsidy:

 

    1. The amount of subsidy shall not exceed Rs 1.2 lakh per employee per annum or Rs 1.8 lakh in case of employees having UP domicile and women/ SC/ ST/ Transgender/ Divyangjan employees, subject to maximum Rs 20 Cr. per year for a period of 3 years.
    2. Such subsidy shall also be provided for freshers’ recruitment at the rate of Rs 20,000 per fresher employee having UP-domicile in units located in Uttar Pradesh, subject to continuous employment of minimum 1 year and annual recruitment of at least 30 fresher employees having UP domicile.
    3. Such freshers’ recruitment subsidy is only applicable for employees recruited for their first job having domicile of UP and has graduated/ post graduated from an recognised UP-based educational institutions only. Such incentive can be availed for a duration of 5 years from the commencement of operations.
    4. Average employment maintained by the unit during a financial year shall be considered for the purpose of this subsidy.

 

  1. Refund of Employers’ contribution to Employment Provident Fund (EPF): 100% reimbursement of the total EPF amount paid for Women/ SC/ ST/ Transgender/ Divyangjan employees having UP domicile, at the rate of Rs 2000 per employee per month subject to maximum of Rs 1 Cr. per annum for 3 years, post commencement of commercial operations.

 

  1. Talent development and skilling incentives
    1. Assistance for creating Internship opportunities in form of reimbursement at the rate of 50% of the costs subject to a ceiling of Rs 5,000 per student per month, capped to maximum 50 interns per annum for a period of 3 years post commencement of commercial operations, incurred by eligible unit for payment of stipend to students from educational institutions located within UP and to the students having UP-domicile. The internship should be onsite at the location of the unit and should last for at least 2 months.

 

    1. Skill development subsidy in form of reimbursement at the rate of Rs 50,000 per employee for course fee or 50% of the costs for conducting training programs by the eligible unit, for maximum 500 employees subject to a ceiling of Rs 50 Lakhs per annum for a period of 3 years from the date of commencement of operations.

 

  1. Incentives for promoting R&D and innovation:
    1. Grant-in-aid for setting up Centre of Excellence: Eligible units shall be encouraged to set up Centres of Excellence (CoE) to foster R&D and innovation in the State. The incentives for such COEs shall be provided as per clause 12.6 of UP IIEPP-2022. Such COEs may be set up in collaboration with academic institutions/ industry associations/ any other public entities.
    2. Start-up ideation: To encourage involvement of start-ups/ entrepreneurs in the ecosystem, eligible units shall be reimbursed 50% of the costs incurred in ideating / running Proof-of-concepts or solving problem statements with start-ups, subject to a ceiling of Rs 2 Cr. per annum for 5 years from date of commencement such R&D / Startup activity at the unit within 5 years of date of commencement of commercial operations.
    3. Intellectual Property Right (IPR) Subsidy: The State Government shall reimburse 100% of the statutory fees for patent filings to GCCs, subject to maximum Rs 5 lakh for domestic patents, and upto Rs 10 lakh for international patents. This incentive can be claimed up to two times during the policy period, and once per year by any eligible GCC, only on awarded patents.

 

  1. Case-to-Case incentives: Advanced GCC units as defined in this policy, subject to following qualifying criteria of having Foreign Direct Investment (FDI) of atleast Rs 50 Cr and unit or their Group company is listed in Fortune Global 500 or Fortune India 500 (as on date of application) shall be eligible for availing customised package of incentives on case-to-case basis as deemed necessary by the State Government.

 

  1. Technical Support Group for GCC: The State Government shall set up a dedicated Technical Support Group (TSG) within the Department of IT & Electronics to offer dedicated support for GCCs establishing operations in the State. This will include industry experts and global leaders.

 

  1. 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 eligible GCC units.

 

  1. Exemption from inspections under the various acts and rules framed there urelated to labour, factory, Shops & Establishment, barring inspections arising out of specific complaints to eligible GCC units.

 

Implementation

This policy has come into effect from the date of its notification, i.e., May 7, 2025 and will remain in force for the period of 5 years.


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GCC POlicy_Final_Hindi.pdf

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Vertika Misra
Director - Public Policy

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