Uttar Pradesh Information
Technology & Start-Up Policy
2017-2022
This Policy is valid for a period of 5 years
from the date of its notification. It supersedes
the UP IT Policy 2012 and UP IT & Start-up
Policy 2016
----------------------------------------------
https://www.iiaonline.in/Uploads/ImportantUpdates/uttar-pradesh-it-and-startup-2017-22-11-04-2018.pdf
------------------------------------------------
Incentives for IT/ITeS Sector The following incentives are
offered to IT/ITeS units across the state of Uttar Pradesh
1: Fiscal Incentives
1.1: Interest Subsidy • An interest subsidy of 5% per annum on the rate of
interest paid on the loans obtained from Scheduled Banks/ Financial
Institutions for a period of 7 years shall be reimbursed subject to a maximum
of INR 1 crore per annum per unit 1.2: 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 1.3: Exemption of Electricity
Duty • 100% exemption on Electricity duty for new IT/ITeS units for a period of
10 years post commencement of commercial operations 1.4: 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 INR 25 lakhs per unit. The similar certifications related to this sector
shall be included from time to time 1.5: 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. 1.6 Recruitment Assistance • Recruitment Assistance to
IT/ITeS units in Tier-II and Tier-III locations at the rate of INR 20,000 per
employee (continuous employment of minimum 6 months) for annual recruitment of
at least 50 new ITBPM professionals from colleges located in Uttar Pradesh. 1.7
Patent Filing Cost • The cost of filing patents will be reimbursed to the
companies having their headquarters in Uttar Pradesh, subject to a limit of INR
5 Lakhs per domestic patent awarded and INR 10 Lakhs per International patent
awarded 2: Other Incentives 2.1: Provision for Land • Reimbursement upto 25% of
the cost of land @INR 15,000 per employee, providing employment to minimum 200
people per acre of land. The employment should be for a continuous period of
one year. This reimbursement shall be given to IT/ITeS units on purchase of
land from state agencies at prevailing sector rates. • 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
3: Incentives on Case to Case Basis
• 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.
• For IT/ITeS Mega Unit investments: The
incentives offered on Case to Case basis
shall be in the form of interest subsidy,
stamp duty exemption, EPF
reimbursement, training subsidy, land
rebate etc. The maximum limit of
financial incentives may be relaxed on the
recommendation of the Empowered
Committee, subject to the approval of
State Cabinet.
• Incentives offered on Case to Case basis
for Mega Projects, would be applicable
under the following framework:
Minimum eligibility requirements
Category Tier-I Tier-II / Tier -III
Mega Investment in the
range of Rs.100-
Rs.200 Crore
Or
Employment of
more than 2500
workers
Investment in the
range of Rs.50-
Rs.100 Crore
Or
Employment of
more than 1000
workers
Mega
Plus
Investment more
than Rs. 200
Crore
Or
Employment of
more than 5000
workers
Investment more
than Rs. 100 Crore
Or
Employment of
more than 2000
workers
4: 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 (may be amended from
time to time), in the prescribed formats
for:
I. The Factories Act
II. The Maternity Benefit Act
III. The Shops & Establishments Act
IV. The Contract Labour (Regulations
& Abolition) Act
V. The Payment of Wages Act
VI. The Minimum Wages Act
VII. The Employment Exchanges
(Compulsory Notification of
Vacancies) Act
4.1: 24x7 Operations
• Permission to IT and ITES companies to
have 24x7 operations (to run in three
shifts) and employment of women in all
three shifts
4.2: Applicability of Industrial Tariff
• Industrial Power tariff will be applicable
to all IT/ITeS units
5: Additional Incentives to MSME IT/ITeS
units
5.1: Rebate on Lease/Rental Space
• Reimbursement up to 25% of lease /rental
charges for the space for MSME IT/ITeS
units established in the state operating
from leased / rented space in IT cities/IT
Parks or any notified location, will be
eligible with maximum limit of INR 10
lakhs per year, for a period of 3 years for
MSME IT/ITeS units from the date of
commencement of commercial
operations.
5.2: Power subsidy
• MSME IT/ITeS units shall be eligible for
25% subsidy on power bills for a period
of 3 years from the date of
commencement of commercial
operations, subject to a maximum limit of
INR 30 lakhs
6: Special Incentives for Bundelkhand/
Poorvanchal Region
In addition to the incentives mentioned
above, IT/ITeS units in Bundelkhand/
Poorvanchal region shall also be eligible for
additional incentives, given below:
6.1: Rebate on Lease/Rental Space
• Reimbursement up to 50% of lease /rental
charges on the space for IT/ITeS units
established in the Bundelkhand/
Poorvanchal region operating from
leased / rented space in IT cities/IT Parks
or any notified location, will be eligible
with maximum limit of INR 20 lakhs per
year, for a period of 3 years from the date
of commencement of commercial
operations.
6.2: Power subsidy
• IT/ITeS/BPO units shall be eligible for 50%
subsidy 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
6.3: India BPO Promotion Scheme
• Capital Subsidy amounting to 50% of one
time capital expenditure incurred on
every seat under India BPO Promotion
Scheme, shall be given to BPOs in
Bundelkhand/ Poorvanchal region
7: Digital Uttar Pradesh Summit
• In order to build a robust ecosystem for
IT/ITeS sector, an annual event “Digital
Uttar Pradesh Summit” shall be
organized. This shall be a platform for
dialogue, deliberation and collaboration
among important stakeholders for
galvanizing digital ecosystem in the state.
Government of Uttar Pradesh shall
promote UP based IT/ITeS units for
participation in Digital Uttar Pradesh
Summit.
Incentives for promoting Start-ups
8: “Start in Uttar Pradesh (START-IN-UP)” to
promote startup culture & entrepreneurship
in Uttar Pradesh
The Uttar Pradesh Start-up Policy gives thrust
to “START IN UP”, to nurture startup culture
using INFUSE model (INcubators – FUnd of
Funds – Startup Entrepreneurs). Various
incentives shall be provided by the
Government to Incubators, Startups and
Investors funding UP based startups
IN - Incubators
8.1: Incentives for Incubators:
• State Government shall promote
establishment of Incubators across Uttar
Pradesh. It is envisaged that every district
in Uttar Pradesh shall have an Incubator.
Further, the country’s largest Incubator is
envisioned to be set up in Uttar Pradesh
• Host Institutes like Government and
Private Technical, Management, R&D
institutes, organizations / non-profit
organization/ corporates / industry
association or in PPP mode shall be
encouraged to establish Incubators or
Accelerators in Uttar Pradesh.
• The selection of Host Institutes shall be
done after due diligence and on case to
case basis.
The following incentives can be availed
for establishing Incubators / Accelerators
• Capital Grant: Capital grant of max 75%
in case of Government Host Institutes and
50% in case of other Host Institutes for
technology infrastructure setup, subject
to a maximum limit of 1 crore. The same
limit shall be applicable to existing
Incubator/Accelerator for scaling up
• Operational Expenditure: Financial
support up to the tune of INR 5 Lakhs per
year for 5 years, covering the deficit of
the operational expenditure in running
the Incubator / Accelerator.
• Rebate on Lease/ Rental Space:
Reimbursement up to 25% of lease /rental
charges on the space in which Incubator /
Accelerator operates, shall be eligible
with maximum limit of INR 10 lakhs per
year, for a period of 5 years or until the
Incubator is self-sustainable, whichever is
earlier.
• Reimbursement of paid Stamp Duty and
Registration Fee: Incubators/Accelerator
shall be eligible for 100% reimbursement
of the Stamp Duty and Registration Fee
paid on sale/ lease / transfer of land and
office space for the first transaction
• Electricity Duty Exemption: Eligible
Incubators/Accelerator will be given 100
% reimbursement for a period of 5 years
• Mentors: Honorarium of INR 2 Lakhs per
mentor associated with Incubator /
Accelerator. The honorarium amount
shall be linked with start-ups being
guided by each Mentors in the Incubator /
Accelerator
Centers of Excellence
8.2: Incentives for Incubators:
• To further propel the growth of start-up
ecosystem, creation of world class
infrastructure in the form of Centers of
Excellence (CoE) is envisaged by the
Government of Uttar Pradesh.
• CoE proposes to strengthen existing
capacities of Incubators and bring with
them maturity and experience in
incubation, exemplary standards of R&D,
best practices for nurturing startups,
capability to accelerate businesses and
provide global networks for startups to
exploit
• The CoEs shall be set up to promote
focus areas like Big Data, Cloud
Computing, Internet of Things (IoT),
Machine Learning, Artificial Intelligence,
Cyber Security, clean-tech, edu-tech, agritech, health-tech and other areas of
social/national importance
• Host Institutes like Government and
Private Technical, Management, R&D
institutes, organizations / non-profit
organization/ corporates / industry
association or in PPP mode can establish
CoEs
• The Government of Uttar Pradesh would
provide financial support in the form of
Grant-in-aid (covering capital and
operational expenditure) of INR 10 crore
to CoE for a maximum period of 5 years.
It is expected that the CoE would become
self-sustainable by the end of 5 years
• The approval for setting up CoEs shall be
contingent upon Empowered Committee’
decision. The release of funds / incentives
by the Government shall depend upon
their performance.
8.3 Collaborative Network of Incubators /
Accelerators / CoE
• The Incubators / Accelerators / CoE
supported by State Government under
UP Start-up Policy shall form a
collaborative network to propel the
growth of start-up ecosystem.
• They shall be expected to work closely
with each other to support start-ups.
Suitable mechanisms may be devised by
Incubator/ Accelerators / CoE to facilitate
knowledge sharing and idea exchange
among start-ups.
• This may be achieved through
organization of bootcamps / workshops /
start-up weekends / events / conclaves
etc. Further, start-ups shall also be
entitled to access common spaces like
conference rooms/ meeting rooms / R&D
facilities etc of Incubator/ Accelerators /
CoE located across different locations in
Uttar Pradesh
FU - Fund of Funds
8.4: Access to Finance by UP Government
• The Government of Uttar Pradesh shall
provide access to finance to start-ups in
Uttar Pradesh by establishing an INR 1000
Crore UP Start-up Fund.
• The Fund shall be in the form of fund of
funds. In this model, the Fund will not be
invested directly into start-ups, rather, it
shall participate in SEBI approved
investors.
• Alternatively, the Fund shall not be
invested directly into start-ups, rather it
shall make investment in “Daughter
Funds,” which would invest in startups
promoting innovative ideas across all
sectors in Uttar Pradesh
• The Government of Uttar Pradesh would
take minority participation in the
Daughter Fund, by being a limited partner
of upto 25%
• The Fund would be professionally
managed and a Fund Manager shall be
nominated/appointed to manage the UP
Start-up Fund, granted by the State
Government.
SE - Start-up Entrepreneurs
8.5: Incentives for Start-ups & Entrepreneurs
Definition of Start-up
An entity shall be considered a start-up, on
fulfilling the following conditions:
• The entity should be registered in Uttar
Pradesh
• The entity should fulfill the terms and
conditions defining start-up as per the
Government of India definition, vide
notification no. G.S.R. 501 (E) dated May
23, 2017 and as amended from time to
time
Note: Any other condition as decided by
Government of Uttar Pradesh
Domain of Start-up
Start-ups are entitled to work across all
sectors (e.g agriculture, health, education,
IoT, 3D printing, Bid Data etc) and they
should be supported by technology
The start-ups fulfilling the above conditions
and being incubated in UP based Incubators/
Accelerators / CoEs shall be eligible for
following incentives:
• At Idea Stage: Startups shall be provided
sustenance allowance of INR 15,000 per
month for a period of 1 year at the idea
stage
• At Pilot stage: Startups shall be provided
marketing / commercialization assistance
of upto INR 10 Lakhs to launch its
prototype product /services in the market
at Pilot stage.
• Patent Filing Cost: The cost of filing and
prosecution of patent application will be
reimbursed to the incubated startup
companies subject to a limit of INR 2 lakh
per Indian patent awarded and INR 10
lakh per Foreign awarded patents
Note: The recommendation for start-ups to
receive the above incentives shall be
forwarded by the Incubator/Accelerator/CoE
in which the start-up is being incubated in
Uttar Pradesh
8.6: Non-Fiscal Incentives for Start-ups and
Incubators
Startups and incubators in the State will be
permitted to file self-certifications, in the
prescribed formats under the following acts
and rules framed (may be amended from
time to time) there under barring inspections
arising out of specific complaints:
i. The Factories Act
ii. The Maternity Benefit Act
iii. The Shops & Establishments Act
iv. The Contract Labour (Regulations &
Abolition) Act
v. The Payment of Wages Act
vi. The Minimum Wages Act
vii. The Employment Exchanges (Compulsory
Notification of Vacancies) Act
• Permission shall be available for 3-shift
operations with women working in the
night for startups, subject to such units
taking the prescribed precautions in
respect of safety and security of
employees in addition to providing the
required welfare and health amenities as
prescribed under applicable labour laws
and obtaining the necessary approvals
from the competent authority
8.7: Uttar Pradesh Start-up Mela and UP
Aavishkaar Puraskar
• The Government of Uttar Pradesh shall
organize Start-up Mela every quarter,
wherein start-ups would be invited to
offer innovative solutions for problem
statements (challenges faced on a day-today basis) by State Government /
Departments/ Agencies/ Organizations
etc.
• The objective of Start-up Mela is to
involve students and entrepreneurs in the
development process of state and nation.
Further, it aims to kindle and nurture the
spirit of entrepreneurship among them.
• The selected start-ups would be awarded
UP Aavishkaar Puraskar, along with a
funding of upto INR 50 Lakhs to
implement their solutions in a time bound
manner
• Performance of selected start-ups shall be
assessed by the concerned State
Government / Departments/ Agencies/
Organizations on a continuous basis.
• The selected start-ups shall also be
eligible to receive free incubation support
for a period of 2 years in
Incubator/Accelerator/CoE supported by
State Government under UP Start-up
Policy
8.8: Other Promotional support
• Uttar Pradesh shall promote organization
of start-up challenges, Hackathons,
bootcamps, workshops, business plan
competitions, conclave, conferences etc
to boost the start-up environment.
• Uttar Pradesh shall be promoted as an
entrepreneur friendly destination through
participation in national and international
events, sponsoring the participation of
local startups in such events and various
other means.
• The government shall provide
sponsorship assistance, subject to a
maximum of INR 50,000 per start-up for
organization/participation in such forums
Note: The UP Government shall adopt and
notify changes in UP Start-up Policy to be in
alignment with Central Government, from
time to time
9: Policy Implementation Unit
• In Uttar Pradesh, a Policy Implementation
Unit (PIU) shall be established under the
chairmanship of Principal Secretary,
Department of IT & Electronics. The
Policy Implementation Unit shall take
decisions on matters pertaining to
effective and successful implementation
of IT & Start-up Policy, like those related
to promotion of start-ups, Incubators,
Venture Capitalists, Start-up Corpus
Fund, IT/ITeS units. The PIU shall be
responsible for providing
recommendation and approval for
incentives applicable to IT/ITeS units,
Incubators/Accelerators/CoE and Startups
etc in Uttar Pradesh. It shall provide
timely redressal of their grievances and
facilitate necessary guidance and
support. In case, a decision is not being
able to resolve at the level of PIU, it shall
be taken up to the Empowered
Committee, chaired by the Chief
Secretary.
• The PIU shall comprise of Consultants
appointed on an outsourcing basis to
implement, support, monitor and provide
feedback to Policy Implementation Unit
Committee/ Empowered Committee on
the implementation of Uttar Pradesh IT &
Start up policy for a period of 5 years.
Other primary responsibilities of PIU
include facilitation to potential investors,
liaison with Government functionaries,
engagement with Industry, Industry
Associations, Entrepreneurs and Startups, Branding and Marketing of policy.
Note: Department of IT & Electronics shall
nominate its nodal agency to promote
IT/ITeS units, Start-ups,
Incubators/Accelerators/CoE & encourage
Host Institutions in the state. It shall be the
nodal agency for implementing UP IT & Startup Policy
10: Empowered Committee
• State Level Empowered Committee
under the chairmanship of the Chief
Secretary shall oversee the development
of UP IT & Start-up Policy and monitor
the implementation of the same. This
committee shall among others comprise
APC, IIDC, and Principal Secretaries of
IT&E, Finance, Planning, MSME,
Commercial Tax, Energy, Transport,
Revenue, Housing and other departments
as required
• The Empowered Committee shall provide
approval for investment on case to case
basis, for development of IT City/IT
Park/Mega Investment/ Incubators / CoEs,
to bring about inter-Departmental
coordination, for establishment of Fund
of Funds, for grievance redressal of
investors, start-ups etc.
• The maximum limit of financial incentives
under the UP IT & Start-up Policy, may be
relaxed on the recommendation of the
Empowered Committee
Policy Duration
This Policy is valid for a period of 5 years
from the date of its notification. It supersedes
the UP IT Policy 2012 and UP IT & Start-up
Policy 2016
Department of Information Technology and
Electronics, Government of Uttar Pradesh
with
UP Electronics Corporation as Nodal Agency
for Policy Implementation Unit (PIU)
Address: 10-Ashok Marg, Lucknow-226001
Phone no: 0522-2286808, 2286809, 2286812
Email: info@itpolicyup.gov.in
Website: itpolicyup.gov.in
KPMG is the Policy Implementation Unit (PIU)
Partner for UP IT & Start-up Policy
Join
STPI Blog -
http://stpi-scheme.blogspot.com/
This Blog helps you to have a better understanding of
STPI scheme, export of IT & software and software services including Information Technology (IT) enabled services/ Bio- IT And other export promotion scheme of Government of India.
You are requested to join
STPI Blog for the latest updates, news,
RBI guidelines for exporters, FEMA Regulations and other related information.
Become Follower of Our Blog -
http://stpi-scheme.blogspot.com/
Join Facebook Group of STPI -
