UP's GCC policy push to turn state into office hub, create 2 lakh jobs

Time of India

a day ago

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The UP Cabinet approval of the Uttar Pradesh Global Capability Centres (GCC) Policy will help in establishing the state as a hub for office space and also in generating over 2 lakh high-paying jobs over the next five years, say industry experts.The state has announced a 30–50% front-end subsidy on land cost, a 25% capital subsidy up to Rs 10 crore for Level-1 and Rs 25 crore for advanced GCCs , and 100% stamp duty exemption.'The incentives will be based on the performance of the company with a focus on job creation, export growth, and technology innovation. The process of availing the benefits of these incentives will also be streamlined by the state government to reduce the administrative burden on the companies,' said Nand Gopal Gupta Nandi, Minister for Industrial Development, Export Promotion, NRI and Investment Promotion, Government of Uttar Pradesh.Industry experts say that the surge in corporate leasing is being propelled by access to a skilled talent pool, improved infrastructure, metro expansions, new expressways, and the development of large-scale commercial complexes.'The approval by the state cabinet will further accelerate this momentum by transforming the region into a hub for office space and innovation,' said Santosh Agarwal, Executive Director at Alpha Corp.The approved policy has broadly categorised two kinds of GCCs: Level 1 and Advanced (Unnat) GCCs, depending upon investment and employment generation.The policy has defined Level 1 GCCs as those which undertake a minimum capital investment of Rs 15–20 crore or create employment for 100–200 people depending upon the city in UP.Advanced (Unnat) GCCs have been defined as those with a minimum capital investment of Rs 50–75 crore and which create employment for at least 300–500 employees depending upon the city.'For the real estate sector, this opens up a significant opportunity to develop world-class office infrastructure, co-working ecosystems, and integrated urban spaces. We foresee a surge in demand for Grade A commercial real estate, complemented by residential and social infrastructure,' said Abhishek Trehan, Executive Director, Trehan Iris.The government has also provided an interest subsidy of 5% on construction and purchase of plant and machinery; a 20% subsidy on operating expenditure; payroll subsidy up to Rs 20 crore; subsidy on recruitment of new employees; EPFO refund; and support for creation of internship opportunities.'The government's move marks a shift from being a cost-based outsourcing destination to becoming a value-driven global business hub. By addressing core operational levers like infrastructure, talent, and ease of doing business, the policy creates the right environment for multinationals to think long term,' said Yash Garg, Director, M3M Noida.The state government will also provide technical and regulatory support to GCCs. Under the regulatory support, exemptions will be provided under various Acts for five years, including pollution, maternity, factories, among others.