Uttar Pradesh government has approved rules to implement the state’s Global Capability Centres policy, designating Invest UP as the nodal agency as the state seeks to attract high-skill investment and expand services work beyond information technology into areas such as research and development.
The rules, approved at a cabinet meeting chaired by Chief Minister Yogi Adityanath, will take effect from the date of notification of the GCC Policy 2024 and remain in force until amended or withdrawn, according to a state government release.
Industrial Development Minister Nand Gopal Gupta (Nandi) said the state’s investment climate had improved and that large industrial groups and multinational companies were approaching the government with proposals.
He said the standard operating procedures were aimed at ensuring effective implementation of the GCC policy and added that 21 companies have already started investing under the framework in the current financial year.
What is global capability centre?
Under the rules, a global capability centre is defined as a captive unit set up by an Indian or foreign company to carry out strategic functions including IT, research and development, finance, human resources, design, engineering, analytics and other knowledge services.
To attract such units, the state will offer a range of financial incentives including front-end land subsidies, stamp duty exemptions or reimbursement, capital and interest subsidies, operating expenditure support, payroll and recruitment subsidies, employee provident fund reimbursement, skill development incentives and research and innovation support.
The rules also provide for special incentives on a case by case basis.
In addition to financial benefits, the state said GCC units will receive facilitation support including technical assistance groups, industry linkage support, regulatory facilitation, time-bound disposal of applications and a streamlined approvals and disbursement process.
The government said incentives under the GCC framework will be in addition to benefits available under schemes of the central government. It added that any legal disputes will fall under the jurisdiction of courts in Lucknow.
