Highlights of UP GCC Policy 2024
Key features of draft UP GCC Policy 2024
Global Capability Centre (GCC) project is defined as a Global In-house Centre or an Offshore Unit established by any Multinational Corporation (MNC) or Indian Company, which is fully owned and operated by the parent company and provides specialized services for the parent company in information technology, R&D, finance, HR and other back-office operations. Although following activities on third party basis shall NOT be eligible as GCC under this policy:
- Service providers for Technology, Engineering, Operations, Digital functions or Integrators supporting Product/ Solution/ Platform Development
- Staffing companies generating revenue by outsourcing talent or contingency staff
- Pure play sales entities selling products or customized tools/ software to India and nearby regions
- Professional Services companies
Eligibility Criteria
| Category | Minimum Investment & Employment criteria |
|---|---|
| Level-1 GCC |
Minimum Capital investment of at least ₹15 Cr and above anywhere in UP (except GB Nagar & Ghaziabad) and ₹20 Cr & above in GB Nagar & Ghaziabad; |
|
Advanced GCC |
Minimum Capital investment of atleast ₹50 Cr and above anywhere in UP (except GB Nagar & Ghaziabad) and ₹75 Cr & above in GB Nagar & Ghaziabad; |
Incentives
- Front end land subsidy 30-50% subsidy on land from State Industrial Development Authorities or any other State Govt Agency
- 100% exemption/ reimbursement on land/office space purchase with bank guarantee or post-commencement reimbursement.
- Capital Subsidy @25% of Eligible Capital Investment (ECI), up to Rs 10 Cr for Level-1 GCC and Rs 25 Cr for Advanced GCC, over seven years.
- Interest Subsidy: 5% subsidy on term loans for up to Rs 1 Cr per year for five years.
- Operational Subsidy @20% subsidy on operating expenses including on Lease rentals, Bandwidth expenses, Power Charges & Data Centre/ Cloud Service Costs, up to Rs 40 Cr per annum to Level-1 GCCs and upto maximum of Rs 80 Cr per annum to Advanced GCCs, for five years.
- Payroll subsidy shall be paid in form of reimbursement for a period of 03 years upto max ₹10 crore per year for a Level-1 unit and upto max of ₹20 crore to Advanced GCC towards on-roll employees having continuous enrolment for atleast 1year.
|
Year of Operation |
GBN & GHZ District |
Rest of UP |
||
|
Permissible Payroll Subsidy Percentage |
Maximum Limit |
Permissible Payroll Subsidy Percentage |
Maximum Limit |
|
|
First |
35% |
35% of the salary received by the employee or maximum of ₹05 lakh of total annual salary, whichever is less. |
50% |
50% of the salary received by the employee or maximum of ₹07 lakh of total annual salary, whichever is less. |
|
Second |
30% |
30% of the salary received by the employee or maximum of ₹04 lakh of total annual salary, whichever is less. |
40% |
40% of the salary received by the employee or maximum of ₹06 lakh of total annual salary, whichever is less. |
|
Third |
25% |
30% of the salary received by the employee or maximum of ₹03 lakh of total annual salary, whichever is less. |
30% |
30% of the salary received by the employee or maximum of ₹05 lakh of total annual salary, whichever is less. |
|
Fourth |
– |
– |
25% |
25% of the salary received by the employee or maximum of ₹04 lakh of total annual salary, whichever is less. |
- Freshers’ recruitment subsidy @Rs 20000 per fresher employee having UP-domicile passing out from UP-based colleges/ institutions, for annual recruitment of atleast 30 such employees, for a period of five years.
- EPF Reimbursement: 100% reimbursement for EPF contributions for women, SC/ST, transgender, and Divyangjan employees, up to Rs 1 Cr annually for three years.
- Talent Development & Skilling: Subsidies for internships of atleast 2-months @50% subject to maximum Rs 5000 per student per month, capped to maximum 50 interns in a year, for a period of three years.
- Skill Development Subsidy @Rs50,000 per employee for course fee or 50% of the cost of conducting training programs, for maximum 500 employees with a cap of Rs 50 lakh per annum for a period of three years.
- R&D and Innovation Incentives: Grants of maximum Rs 10 Cr. for setting up Centres of Excellence, support for startup ideation, and academic partnerships, as per IIEPP-2022.
- Startup Ideation: Reimbursement of 50% of costs incurred in running proof of concepts upto maximum of Rs 2 Cr per annum for a period of five years.
- Subsidy for IPR: Reimbursement of full cost incurred for filing patents upto maximum of Rs 5 lakh for domestic patents and upto maximum of Rs 10 lakh for international patents.
- Case-to-Case Incentives to GCCs meeting any of following criteria –
- To employ minimum 1500 personnel
- Capital investment (excluding cost of land) of more than ₹250 crore.
- Foreign Direct Investment by the unit company should be at least ₹50 crore. For this purpose, capital investment (in case the land and building are self-constructed) or annual operational expenditure (in case of operation on a rental basis) shall be considered for financing through investment in the form of FDI. (The definition of FDI will be the same as defined in Uttar Pradesh Foreign Direct Investment (FDI), Foreign Capital Investment (FCI) and Fortune Global 500 Investment Promotion Policy 2023).
- A company listed in Global Fortune 500 (Holding/Parent Company) and Fortune India 500 (Holding/Parent Company) employing minimum 1000 personnel.
Nodal Agency: Invest UP
