UP- IT & Start-up Policy Encourage Youth to become Job Creators
IT & Start-up Policy 2017 – 2022, of Uttar Pradesh aims to tap in the potential of technology sector as a great harbinger of change, reaping in benefits of job creation, innovation and holistic socio-economic development with a focus on development of human capital. Government has heralded tremendous transformation by creating an enabling policy environment, in tandem with undertaking proactive initiatives for translating these policies on ground. Noida and Greater Noida have been developed as leading software and start-up hubs. IT City and IT Parks are being set up in Lucknow, and Agra, Meerut, Kanpur, Gorakhpur, Varanasi, Bareilly etc. To nurture innovation and entrepreneurship youth are being encouraged to become “Job creators” instead of “Job seekers. Incubators have been developed at premier institutes like IIT-Kanpur, IIT-BHU, IIM-Lucknow (Noida), KNIT Sultanpur to inculcate start-up culture. For guiding and facilitating investors, entrepreneurs and start-ups a dedicated policy implementation unit has been established at UP Electronics Corporation Limited, with KPMG as the consultants. According to Uttar Pradesh Industries Development Minister Satish Mahana the government encouraging start-ups with an objective of emerging as a hub by fostering a culture of innovation and entrepreneurship and intends to create world class infrastructure and incubators to support start-ups in the state. As per the policy:
- Enabling environment for growth of IT-BPM industry and start-ups is being created by providing simplified regulatory regime and dedicated touch-points for resolution of their concerns.
- Dedicated investor facilitation has been established to enhance ease of doing business in the state.
- A corpus of Rs1,000 crore is being instituted to provide growth capital to UP-based start-ups
- UP is amongst top 5 manufacturing states in India contributing to 8.3% of national manufacturing output.
- UP has the 2nd highest number of units in country, comprising of 11.55% MSMEs in India and over 2,000 functioning start-ups.
- Country’s largest incubator has been proposed to be established in UP which is being set up in Lucknow.
- Incubators are given capital grant for infrastructure set-up along with support to meet operational expenses for 5 year.
- Each Incubator has dedicated mentors provided with mentorship assistance to cover expenses.
- Start-ups are supported along their entire journey with incentives including monthly sustenance allowance of Rs. 15000 for 1 year and marketing assistance of Rs. 10 lakh.
- Provision for Land: Reimbursement up to 25% of the cost of land @ Rs. 15,000 per employee, providing employment to minimum 200 people per acre of land.
- Fiscal Incentives include:
- 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 Rs. 1 crore per annum per unit
- Stamp Duty 100% exemption 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% for new IT/ITeS units for a period of 10 years post commencement of commercial operations
- Incentives for Certifications
- 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 Rs. 20 Lakhs per annum for 5 years for a unit.
- Recruitment Assistance to IT/ITeS units in Tier-II and Tier-III locations at the rate of Rs. 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.
- Patent Filing Cost will be reimbursed to the companies having their headquarters in Uttar Pradesh, subject to a limit of Rs. 5 Lakhs per domestic patent awarded and Rs. 10 Lakhs per International patent awarded.