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UP 2012- the Information Technology Policy of the State

Uttar Pradesh government created it’s Information Technology Policy in 2012 with an aim to strengthen the position of the state as an attractive investment friendly state for IT industry by providing ease of doing business, business friendly environment and supportive policy for the industries to grow. Through this policy, the state promotes Tier-II cities like Lucknow and Agra as next best destinations for IT industries. The main agenda is the wholesome development of the state which includes providing good standard of living for the people as well.


  • Economic transformation– To promote trade, investment and entrepreneurship in IT Sector, and build an IT engine for trans-sector transformation
  • People’s Engagement and Empowerment– To enhance quality of life through affordable and equitable IT Innovation.
  • Innovation– To nurture a creative, innovative and green IT Sector

Main highlights:

  • Term loan and working capital loan interest is to be subsidized at 5% for 5 years from the date of commencement of commercial business operations with a reimbursement of a maximum ₹ 1 crore.
  • Units of IT/ITeS to be exempted from stamp duty by 100% on purchasing/leasing of land or office space.
  • Industries either to get interest free loans on the amount of VAT (Value Added Tax) and CST (Central Sales Tax) that they paid or 10% of the annual sales that they make for a period of 10 years. They can repay the amount within 7 years time. However, units with capital investment of ₹ 5 crore or above are eligible for this.
  • All IT/ITeS projects that are set up in Tier-II and Tier-III cities are to get land at 25% of less price.
  • Registered IT units those are established IT cities, Technology Parks, Software Technology Parks in Tier-II and Tier-III cities are to get 100% additional Floor Space Index on the allowable Floor Space Index .
  • IT/BPO companies who employ a minimum 20 people to a maximum 50 people can establish their offices anywhere in the state irrespective of the master plan, or land use classification, barring specific land usage.
  • A Policy Implementation Unit under the chairmanship of Principal Secretary of IT department of the UP government is to set up to assist the entrepreneurs and other IT units and startups to facilitate statutory clearances.
  • This policy also gives permission to IT and ITeS companies to run 24×7 operations and employment of women in all three shifts (morning, day and night shifts respectively).
  • It also talks about of tie-up with NASSCOM for Tier-II/III cities for NASSCOM assessment mechanism to help companies with training needs and others.
  • A Single Window Clearance System to be implemented for better regulations as well as to help startups.

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