Red carpet for private investors in ITeS sector

The Uttar Pradesh government has announced a slew of incentives and subsidies to encourage private investors and create local jobs in the Information Technology and IT-enabled Services (ITeS) sector.

Under the new UP IT Policy promulgated recently, the Yogi Adityanath government is developing an IT City in each of the four regions — Purvanchal (Eastern UP), Paschimanchal (Western UP), Madhyanchal (Central UP), and Bundelkhand. Similarly, it will set up IT Parks in each of the 18 administrative divisions of the state.

To encourage investors, the government will provide a subsidy of 25 per cent or up to Rs 20 crore for setting up IT Parks. Additionally, it will offer up to 100 per cent stamp duty exemption. At the same time, the state will provide a subsidy of 25 per cent or up to Rs 100 crore on developing an IT City. The government will also encourage private IT firms to employ local youth to avail of more pecuniary benefits. For example, on employing 30 locals, the state will provide a single-time recruitment assistance of Rs 20,000 per student per year to the concerned enterprise.

Besides, the government will assist the students or employees to enhance their working skills in the field of emerging technologies. For online or offline skill development curriculum in select institutions, the government will bear 50 per cent of the course fee, subject to the maximum support of Rs 50,000.

Moreover, exemption will be provided to the private IT units employing women, SC/ST students, transgender, and specially-abled people. Such units will be eligible for the employees’ provident fund reimbursement. This includes new units as well as units undertaking expansion.

Ahead of the proposed UP Global Investor Summit 2023, the state is amending existing policies to woo the private sector in a host of sectors. While some policies have been amended and promulgated, the rest are in the process of being finalised and cleared by the state Cabinet, a senior official said. Business Standard