1000 Global Capacity Centers will be built in UP, 5 lakh people will get employment
The Uttar Pradesh government under the leadership of Chief Minister Yogi Adityanath is making significant strides to boost employment and investment in the state. In a move that could transform the state's economy the government plans to establish 1000 Global Capacity Centers (GCCs) in the near future. This ambitious project is part of a new Global Capacity Center Policy formulated by the state's IT department. The policy expected to be approved by the Cabinet soon aims to provide private companies with various incentives including land acquisition benefits and staff duty exemptions.
The government has crafted this policy with the goal of attracting large-scale investments from multinational companies. Once implemented these centers are expected to generate around 500000 job opportunities in the state.
Incentives for Private Companies
To encourage private sector participation the Uttar Pradesh government has designed a range of benefits for companies setting up Global Capacity Centers. These companies will receive assistance ranging from land acquisition subsidies to stamp duty exemptions. The policy focuses on promoting job creation export growth and innovation.
As per the IT department's new policy private companies will receive subsidies on land purchases especially in specific regions of Uttar Pradesh. For instance:
Companies establishing GCCs in Gautam Buddha Nagar and Ghaziabad will get a 30% land subsidy.
In Western Uttar Pradesh the subsidy increases to 40%.
In Eastern Uttar Pradesh and Bundelkhand companies can avail of a 50% subsidy on land acquisition.
These benefits aim to foster investment in areas that have not traditionally attracted significant corporate presence.
Full Exemption on Stamp Duty
The Uttar Pradesh government is also offering full exemption from stamp duty for companies investing in Global Capacity Centers. However if a project fails to meet its completion deadline the government will recover 12% of the land subsidy each year as a penalty.
In addition the policy outlines several financial subsidies to reduce the operational costs of these centers. For example companies securing term loans exceeding ₹1 crore will receive an interest subsidy of 5% annually. Other operational costs such as rent bandwidth data center usage cloud services and electricity will be subsidized at 20% annually.
Government Support for Employees
The Uttar Pradesh government will extend financial support to companies employing locals. For each employee the government will provide up to ₹1.2 lakh annually for three years. This initiative aims to promote local hiring making the project beneficial not only for the companies but also for the state's skilled workforce.
The government will also contribute ₹20000 per month for the first year for freshers hired by the companies provided that at least 30 employees belong to Uttar Pradesh. This step is intended to ease the financial burden on companies while encouraging them to hire more people from within the state.
In addition companies will receive up to ₹5000 per year for three years for every intern they hire with a cap of 50 interns. This initiative aims to foster talent development and skill-building among young professionals in the state.
Special Incentives for Global Companies
Fortune 500 companies and firms investing at least ₹50 crore through Foreign Direct Investment (FDI) will receive additional incentives. The policy mentions that the government will consider such cases on an individual basis to offer specific benefits. To facilitate the smooth operation of these centers the state plans to relax seven key labor laws ensuring that the centers can function 24/7. Women will also be permitted to work night shifts in these centers a move that promotes gender inclusivity in the workforce.
What are Global Capacity Centers?
Global Capacity Centers (GCCs) are multi-functional facilities that provide technological services in areas such as information technology (IT) artificial intelligence (AI) data analytics cybersecurity data management cloud computing quantum computing and robotics. These centers play a crucial role in supporting the operations of multinational companies by offering critical digital transformation and high-value engineering services.
GCCs have become particularly valuable in sectors like banking financial services insurance semiconductors communication chemicals pharmaceuticals energy medical devices aerospace oil and gas and healthcare. By providing expertise and technological support GCCs enable companies to enhance their productivity and competitiveness.
The IT Landscape in Uttar Pradesh
Uttar Pradesh is already home to around 200 electronic system design and manufacturing (ESDM) and IT companies employing approximately 350000 highly educated and trained professionals. The state boasts 40 IT parks and 25 special economic zones (SEZs) making it a hub for technological development.
Currently Noida is emerging as a global hub for GCCs while Lucknow is poised to become a center for artificial intelligence (AI). The state is also seeing significant growth in entrepreneurship with 13299 new enterprises being established in recent years.
