Uttar Pradesh government has unveiled a comprehensive Global Capability Centres (GCC) Policy, aiming to establish the state as a major office space hub while generating over 2 lakh high-paying jobs in the next five years.
The policy, approved by the UP Cabinet, offers substantial subsidies on land costs, capital investments, and stamp duty exemptions, incentivizing corporate leasing, job creation, and technological innovation.
Key Incentives Under the GCC Policy
The policy introduces financial and operational incentives to attract multinational corporations (MNCs) and Indian companies to set up GCCs in Uttar Pradesh. These include:
- Land Subsidies: 30–50% front-end subsidy on land costs.
- Capital Investment Support: 25% capital subsidy up to ₹10 crore for Level-1 GCCs and ₹25 crore for advanced GCCs.
- Stamp Duty Exemptions: 100% exemption on stamp duty for office space purchases.
- Operational Subsidies: 20% subsidy on operating expenses, including lease rentals, bandwidth costs, and power charges.
- Payroll Subsidy: Up to ₹20 crore reimbursement for new employee recruitment.
- EPFO Refunds: Support for employee benefits and internship opportunities.
Classification of GCCs: Level-1 vs. Advanced GCCs
The policy categorizes GCCs into two tiers based on investment and employment generation:
- Level-1 GCCs: Minimum capital investment of ₹15–20 crore, creating 100–200 jobs depending on the city.
- Advanced (Unnat) GCCs: Minimum capital investment of ₹50–75 crore, generating 300–500 jobs.
Infrastructure and Talent Pool Advantages
Industry experts highlight that corporate leasing in UP is being driven by:
- Access to a skilled talent pool.
- Improved infrastructure, including metro expansions and expressways.
- Development of large-scale commercial complexes.
The policy is expected to boost demand for Grade A commercial real estate, co-working spaces, and integrated urban ecosystems.
Regulatory Support and Ease of Doing Business
To facilitate GCC operations, the UP government has introduced regulatory exemptions for five years, covering:
- Pollution control norms.
- Maternity benefits.
- Factory regulations.
This shift positions Uttar Pradesh as a value-driven global business hub, moving beyond its traditional role as a cost-based outsourcing destination.
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