In a major push to establish itself as a top hub for Global Capability Centres (GCCs), the Uttar Pradesh government led by Chief Minister Yogi Adityanath has rolled out a detailed incentive policy. The state has officially notified Standard Operating Procedures (SOPs) that offer significant front-end subsidies on land to eligible GCC units, aiming to ensure balanced industrial growth across all regions.
Tiered Subsidy Structure for Balanced Growth
The newly cleared framework, recently approved by the state cabinet, introduces a region-wise subsidy model. GCC units setting up in Gautam Budh Nagar (Noida) and Ghaziabad will be eligible for a 30% subsidy on land bought from government agencies. To encourage development beyond the immediate National Capital Region (NCR) area, a higher subsidy of 40% is earmarked for Paschimanchal (excluding the two districts above) and the Madhyanchal region.
The most attractive incentive is reserved for the state's less developed eastern and southern parts. To spur investment in Purvanchal and Bundelkhand, the government is offering a substantial subsidy of up to 50% for GCC units established there. Officials state this differential structure is strategically designed to attract fresh capital, generate high-value employment, and reduce long-standing regional disparities.
Policy Conditions and Safeguards
The subsidy scheme comes with specific conditions to ensure its effectiveness and prevent misuse. The financial benefit will apply only to land purchased directly from state bodies like the industrial development authority, development authorities, urban local bodies, or other government agencies. Units operating from rented premises or co-working spaces will not qualify, as the policy's core objective is to promote long-term, fixed industrial infrastructure creation.
The SOPs also incorporate strict safeguards to guarantee timely project execution. The allotted land will remain mortgaged with the concerned authority until the unit begins commercial operations or a stipulated period lapses. In cases of significant delay or project non-completion, the government will recover the subsidy amount along with an annual interest charge of 12%. The entire subsidy cost will be borne by the state's Department of Industrial Development.
Strategic Implications for Uttar Pradesh
This proactive policy move positions Uttar Pradesh in direct competition with other states aggressively courting GCC investments. By offering clear, upfront financial benefits on land—a major cost component—the state aims to simplify the decision-making process for multinational corporations. The tiered subsidy model directly addresses the challenge of uneven development, attempting to channel investments into regions like Purvanchal and Bundelkhand that have traditionally received less industrial attention.
The focus on owned infrastructure over rented spaces signals a commitment to fostering permanent, large-scale operations that contribute to the state's economic base for decades. With this structured incentive regime, Uttar Pradesh hopes to not only attract new GCCs but also encourage existing units to expand and solidify their roots within the state, ultimately creating a robust ecosystem for high-skilled jobs and technology services.
