Uttar Pradesh Launches GCC Policy, NASSCOM Joins Screening Panel
Overview
Uttar Pradesh government has activated its Global Capability Centre (GCC) Policy, establishing a technical study group including NASSCOM to vet applications. The policy aims to attract investment through significant incentives like substantial land and capital subsidies, stamp duty exemptions, and interest/operating expense support for eligible GCC units, targeting major employment generation within the state.
Uttar Pradesh has initiated its Global Capability Centre (GCC) Policy with the formation of a technical study group (TSG). This body, comprising key state officials, Invest UP representatives, NASSCOM, and STPI, will scrutinize applications for setting up GCCs in the state.
Policy Framework
The UP GCC Policy Implementation Rules-2025, cleared in early January, mandates the TSG to submit recommendations within 30 days. The primary role of the TSG is to ensure applications align with the state's GCC policy framework, explicitly excluding third-party BPO, KPO, or outsourcing firms serving multiple clients from the definition.
Investment Incentives
The policy offers substantial financial inducements to eligible GCCs. This includes front-end land subsidies ranging from 30% in Gautam Buddh Nagar and Ghaziabad to 50% in Eastern and Bundelkhand regions. All eligible units will receive 100% reimbursement on stamp duty for land or building purchases/leases.
Capital and Operating Support
Level-1 GCCs can secure a capital subsidy of 25% of verified eligible capital investment, capped at ₹10 crore annually, while advanced units can receive up to ₹25 crore per year. An interest subsidy of 5% on term loans for infrastructure development is available for up to five years, capped at ₹1 crore per unit annually. Furthermore, operating expense subsidies of 20% are offered for five years, with limits of ₹40 crore for Level-1 and ₹80 crore for advanced units annually, covering costs like lease rent, bandwidth, and electricity.
Economic Objectives
Uttar Pradesh officials anticipate the policy, supported by clear standard operating procedures, will significantly boost investment inflows and create substantial employment. Twenty-one companies have reportedly already commenced investments under the GCC framework in the current financial year.
