The Uttar Pradesh Cabinet has officially approved the first amendment to the UP IT & ITeS Policy 2022. This update aims to attract more technology investment, support smaller businesses, and create thousands of new jobs across the state. Previously, companies could receive government rewards only based on how much they spent. Now, the government will also consider how many jobs a company creates and how large its operations are.
A major goal of this new policy is to spread technology growth outside of crowded cities like Noida and Ghaziabad. For smaller IT companies setting up in other districts, the government has increased financial support to 25% of their fixed investment costs. It has also lowered the minimum investment needed to just ₹2 crore. To make setting up a business even easier, the minimum land needed to build an official “IT City” has been cut down to 20 acres.
For the first time, shared office spaces will receive government funding. Developers can get up to ₹20 crore to build these modern workspaces, making them highly affordable for brand-new startups. The government has also shared that any investment above ₹500 crore can receive a 75% land rebate and capital subsidy of around 40%. However, that has been capped to ₹400 crore and is also subject to various approvals and conditions.
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The government is heavily focusing on helping companies hire workers by offering cash assistance for monthly payrolls, training programs, student internships, and moving costs for skilled professionals. Finally, IT companies that sell services to other countries will get special bonuses based on their international sales, putting Uttar Pradesh on the global technology map.
