UP cabinet approves GCC policy to benefit developing tier 2 and 3 cities in the state

In keeping with its aim of becoming a leading destination for global investment, the Uttar Pradesh cabinet today approved the Global Capability Centre policy which will focus on strengthening the value chain for analytics, data management, research and development and the like.

The policy seeks to build on India’s growing strengths in GCC in software and technology; banking, financial services and insurance; telecom and networking; and semiconductors.

The prime features of the policy are: up to 50 per cent land subsidy, 100 per cent reimbursement or exemption on stamp duty for land, office space and buildings; capital subsidy of up to 25 per cent of investment; and an annual reimbursement of up to 20 crores for employee salaries and operational costs.

The strategic framework for the policy is a hub and spoke model with global hubs, followed by satellite offices, outsourcing centres and outpost/cluster offices.

The policy aims to bring the benefits of GCCs to developing tier 2 and 3 cities- which dominate the state’s geography. This focus will not just accelerate the development of these cities but also help in reducing income inequalities. The most important tool for this will be attractive investment solutions.

Regional imbalance is a significant challenge for the state. While Noida and the National Capital Region (NCR) have attracted significant GCC investments from Samsung and Adobe for instance, other regions have lagged.

The policy, in addition to the above-mentioned benefits will also offer subsidies for skill development and intellectual property rights. In addition, on a case-to-case basis other subsidies, and other financial assistance will also be made available.

Non-financial incentives include permission to operate 24x7; regulatory exemptions from certain laws like pollution control; and a dedicated technical support group for regulatory guidance, policy advocacy and support to smoothen business operations for GCCs. Commercial and technical partnerships with local educational institutions, incubators and centres of excellence for talent recruitment and collaborative research and development are also part of the policy.

Business