Uttar Pradesh Information Technology & Start-UP Policy 2016

Transcription

Uttar Pradesh InformationTechnology & Start-UPPolicy 2016Page 1

3.3.1.5: Grant on EPF for Employmentgeneration . 10Contents1. Introduction . 32. Vision, Mission & Objective . 42.1. Vision . 42.2. Mission . 42.3. Objective . 43.Policy Implementation Strategy . 53.1: IT Infrastructure Development . 63.1.1: Promotion of IT Cities/IT Parks . 63.1.2: Public Private Partnership (PPP) . 63.1.3: Information Technology InvestmentRegion (ITIR) . 63.1.4: Establishment of IT Corpus . 63.1.5:e-Governance Initiatives & delivery ofCitizen Centric Services . 73.1.6: Digitization of Governmentinformation . 83.1.7: Cyber Security . 83.1.8: Create Centers of Excellence (COE)for Innovation and R&D of IT Services- . 93.3.1.6: Industrial promotion Subsidy . 103.3.2: Other Incentives. 113.3.2.1: Provision for Land . 113.3.2.2: Incentives on Case to Case Basis 113.3.3: Non-Fiscal Incentives . 113.3.3.1: Uninterrupted Power Supply . 113.3.3.2: 24x7 Operations . 123.3.3.3: Applicability of Industrial Tariff . 123.3.4: Additional Incentives available toMSME IT/ITeS units and Incubators . 123.3.4.1: Rebate on Lease/Rental Space— 123.3.4.2: Power subsidy . 123.3.5: ‘Start in Uttar Pradesh’(START-UP) topromote startups culture &entrepreneurship in Uttar Pradesh . 123.3.5.1: Promotion of Incubators: . 133.3.5.2: Establishment of FundManagement Committee to manage fundcorpus: . 143.2: Human Capital /Skill Development . 93.3.6: Branding & Business promotionsupport- . 143.2.1: Capacity building . 93.4: Industry Facilitation . 153.2.2: Establishment of Skill Development/Incubation Centres: . 93.4.1: Policy Implementation Unit- . 153.2.3: Bridging the Digital Divide: . 93.4.3: Empowered Committee - . 153.2.4: Awards for e-Governance . 94. Glossary . 163.4.2: Single Window Clearance - . 153.2.5: Promotion of m-Governance . 103.3: Incentives . 103.3.1: Fiscal Incentives . 103.3.1.1: Interest Subsidy . 103.3.1.2: Stamp Duty . 103.3.1.3: Exemption of Electricity Duty . 103.3.1.4: Incentives for Certifications . 10Page 2

1. IntroductionUttar Pradesh, as one of the largest contributorin IT/ITeS sector& has been consistently focusingon developing infrastructure, human capitaldevelopmentandeffectivepolicyimplementation so as to create a conduciveambience for IT-BPM industry. The state underthe Dynamic leadership of Hon’ble ChiefMinister of Uttar Pradesh with a set goal to takeInformation Technology into the entire land ofUP released IT Policy 2012 focusing on Tier-II &Tier-III cities of the state leveraging theexperience of Noida/G.Noida as IT Hub.India’s success in the area of InformationTechnology (IT) Software and Related Servicesover the past decade has been acknowledgedglobally. According to NASSCOM, IT-BPMIndustry is contributing highest relative share innational GDP of around 9.5%. Indian IT-BPMindustry achieved revenue of around US 130Billion in FY 2014 and with 13% growth rate, it isexpected to achieve revenue of US 150 Billionin FY2015. With around 3.5 million employees,currently IT-BPM Industry has become thelargest private sector employer in the country. Inaddition to this, Industry shares the largestchunk of more than 38% services export. Interms of entrepreneurship promotion, India hasnow become 4th largest startup hub in the worldwith the presence of more than 3,100 startupsin the country. India continues to consolidate itsposition as the global hub for IT-BPM services.IT Policy Implementation: With a conduciveenvironment, Uttar Pradesh, for ation Unit (PIU) & roped in best ofIndustry Consultant KPMG to manage PIU. Oneof the achievements is the construction of 100acre IT City on PPP model in Lucknow with stateof art skill development centre with a capacity of5,000 students per year. This IT city with min.INR 1,500 Crores investment will generate direct& indirect employment of approx. 75,000people. Another initiative is the establishment ofIT Parks in Agra, Meerut, Ghaziabad, Kanpur &Gorakhpur is in process. To encourage start-ups,the state government started First Governmentbased incubator IT UPVAN in Ghaziabad &Lucknow. Rural incubation cum training centres,eSETU (e-Skill Entrepreneurship Training Unit)have been planned to establish in 13 cities ofthe state. The state is undergoing a radicalinfrastructural change building Agra-Lucknowexpressway, Lucknow metro & in other cities,Electronic Manufacturing Clusters, Trans-Gangaproject, 13 Smart cities etc.e-Governance: The state Government hasestablished more than 20,000 Common ServiceDelivery outlets such as Jan Seva Kendra,Lokvani, e-Suvidha services delivering 5.6 croreselectronically to the doorstep of the citizenstaking it to the remotest location such asGhazipur District with 55 Lacs has highestnumber of eTransaction in the state. The timebound implementation of Mission ModeProjects (MMPs) was one of the priorities of thegovernment. The state government made aprovision of self declaration in citizen centricservices like caste, income certificates etc. whichwas a big welcome among citizens of UP.World’s largest Laptop Distribution Program: Thestate receives several e-Governance awards for‘Bridging the Digital Divide: Laptop distributionprogram”& e-Governance projects in variousprestigious forums & events.Considering the future of m-Governance, thestate government promoted GovernmentServices through mobile based applications. As aresult, mobile applications such as m-Sehat(strengthening the front-line health workersminimize mother-infant mortality rate), mSwasthya (accelerate the reduction of maternal,neonatal, and child mortality), UPOne etc havebeen developed and implemented.Page 3

Abundant Skilled Manpower: The availability ofnumerous technical and manpower centers ofexcellence makes the state ideally suitable forsetting up of IT industry. State has large base ofskilled manpower graduating from 700professional institutions half of which impartingengineering and management courses includingIIT Kanpur, IIIT Allahabad, IT-BHU & IIM,Lucknow making it an ideal destination forknowledge-based sectors. Dr. Abdul KalamUniversity, one of the largest technical universityis home to 300 engineering institutions.2. Vision, Mission & ObjectiveContinuing the success of IT Policy 2012 andconsidering the changing business scenario &scaling up the initiatives of IT Policy 2012, UttarPradesh Information Technology & Start uppolicy 2016aimsto reinforce the position of UttarPradesh as an attractive destination for theIT/ITeS industry, enhances citizen servicesthrough e-Governance & m-governance model& gives a special focus on startups & buddingEntrepreneurs to flourish in the state. To position Uttar Pradesh as the preferredIT/ITES investment destination in India To leverage IT as an engine of growth for UP To transform physical communities intoconnected communities that can help torealize sustainable economic growth andenhance the quality of life.2.1. Vision“To use I.T. as a vehicle for economicdevelopment of Uttar Pradesh with inclusivegrowth to create a vibrant society with a highquality of life”2.2. MissionThe mission of the State is to:2.3. Objective Promoting UP as an attractive investmentdestination for IT/ITeS companies by providingcongenial, industry friendly and proactiveclimate. Promote the development of IT Cities/IT Parksfor IT Infrastructure Development. To create excellent ICT infrastructure as aplatform to provide seamless connectivity forbusinesses and users, easy to use public andprivate services in a vibrant ecosystemconsisting of ICT operators, Service Providers,Government, Regulators and end users. Enhancing the quality of talent pool andcreationofadditionalemploymentopportunities, development of skilled ITmanpower in the state for all sections of thesociety, across all regions, and to leverage IT as atool for the socio-economic development of theState.Page 4

Focus Areas:Uttar Pradesh Information Technology & Startup policy 2016 is formulated to facilitate allstages of IT/ITeS industry encompassingStartups/Entrepreneurs, MSME (Micro, Small,and Medium Enterprises) and large IT/ITeSIndustry by providing best of the incentives withconducive policy framework.3. Policy Implementation StrategyThe Policy is effective to the entire state ofUttar Pradesh unless specified otherwise &includes Noida, Greater Noida & YamunaExpressway region. Uttar Pradesh InformationTechnology & Start up policy 2016shall beimplemented based on 4 points strategy.1. IT Infrastructure Development2. Human Capital/Skill Development3. Incentives4. Industry FacilitationIn order to further attract IT/ITeS industry in thestate of Uttar Pradesh, Uttar PradeshInformation Technology & Start up policy 2016focuses on building IT related Infrastructure,providing better avenues for Human capitaldevelopment, best of the fiscal/Non-fiscalincentives and on top of that Policy focuses onbetter governance for its implementation andmonitoring.Page 5

infrastructure similar to an IT city like opticfibre connectivity, Broad band connectivity,Wi-Fi access, Video conferencing facilitiesetc. IT Park is a subset of an IT City withentire area dedicated majorly on ITactivities3.1: IT Infrastructure Development3.1.1: Promotion of IT Cities/IT Parks Creation and improvement of excellent ITInfrastructure development such asestablishment of ‘state of the art’ IT Cities &IT Parks in order to provide thrust on ‘Readyto Move in’ infrastructure facilities for IT/ITeS units. The guidelines for the IT city &IT Parks (Four Models) have been releasedby the state government to facilitate the ITUnits building base in the state.3.1.2: Public Private Partnership (PPP) The State shall leverage various PPP modelfor development of IT Cities/Parks. The Government shall also encourageinvestments in PPP projects for bringingworld-class schools, hospitals and otherfacilities which can complement the effortsfor attracting investments in IT sector.3.1.3:InformationInvestment Region (ITIR) An IT City requires 100 to 500 acres of landwhich will be used in the ratio of 60:40approximately as processing and nonprocessing area. The processing area wouldconsist of only IT units like IT companies,BPO’s, KPO’s etc. The non-processing areawould include residential facilities, publicutility offices/facilities/commercial area,Education, Healthcare and open spaces.An IT park is constructed with minimumfloor area of approximately 15000 squaremeters. It may or may not include publicutility offices/ facilities in the said premises.The area allotted for IT activities should be75% of the allocable area. An IT parkcontains most of the technologicalTechnologyIn order to promote investment in theIT/ITES/Electronic Hardware Manufacturing(EHM) industry, the Govt. of India notifiedthe ITIR Policy 2008. State Governmentalong with Central Government shall play acollaborative role in establishing ITIR in thestate. Currently Government of UttarPradesh proposes to develop InformationTechnology Investment Region (ITIR) alongAgra-Lucknow expressway.3.1.4: Establishment of IT Corpus Each Department shall earmark aminimum of 2% or as per directions ofGovernment of Uttar Pradesh from time totime of its Plan budget for IT applications.This fund shall be pooled together under aseparate budget head to be administered bythe Department of IT under guidance andcontrol of an Empowered Committee to beset up under the chairmanship of the ChiefSecretary, Government of Uttar Pradesh.Page 6

The individual Departments shall stemsandConsumables. The Departments shall alsoearmark additional funds for their envisagedneeds. The Pool fund shall be utilized fordeveloping replicable and reusable modelsof e- Governance, IT innovations inadministration; IT supported resourceoptimization, MMPs, decision supportsystems, MIS, intranets and otherdepartmental applications and enablingtechnologies. Priority shall be given to unitslocated in the State for award of softwareand skill development work. Connectivity: State Government will play aproactiveroleinimprovingthecommunication and connectivity across thestate by leveraging National Optical FiberNetwork (NOFN)/ Bharatnet in addition toNational Knowledge Network (NKN)framework. Existing UPSWAN connectivitywould be extended to Gram Panchayatsthrough NOFN/BharatNet. SDC 2.0: State of the Art UP-SDC 1.0 (statedata center) has been established as centraldata repository to which all statedepartments are linked for public domaininformation for 24x7 usage with fullcapacity utilization. The ISO 27001 certifiedState Data Centre of Uttar Pradesh Shallcontinue to provide shared infrastructure aswell co-located hosting model to variousState Departments to host their applicationsand services in a fully secured Governmentowned facility for efficient management,ensuring that adequate and optimal use ofthe resources. Virtualization and CloudComputing would be used to ensure OnDemand Availability of IT Infrastructure andCommon Applications. The State has avision to develop a centralized green datacentre (SDC 2.0) which is cloud ready fromthe day of inception where hosting ofapplication and services will be based on“Pay as per Use” Model. Building trust: Affidavit and notaryattestation shall be completely removedaccommodatingself-declarationanddatasets shall be used instead of documentsfor service delivery. Formation of virtual IT Cadre: Availability ofskilled IT manpower should be ensured tosustain various eGovernance initiatives.Virtual IT Cadre shall be set up in the statewhich would assist the Departments inconceptualizing, designing, monitoring andmanaging the IT initiatives across the State. The fund requirements for BrandPromotion of Uttar Pradesh shall also bemade available from the IT Corpus.3.1.5:e-GovernanceInitiativesdelivery of Citizen Centric Services&The state Government shall identify relevant eServices to be developed. Citizen Service Delivery: Provision of eServices would be made available throughinternet and Common Service Deliveryoutlets such as Jan Seva Kendra, Lokvani, eSuvidha etc. with a sole objective to nurtureanenvironmenttofacilitatethedevelopment of affordable e-Services.MMPs: Government of Uttar Pradesh ariousMMP’s(Mission Mode Projects) like eDistricts, CCTNS (Crime and CriminalTracking Network and Systems) and projectsof Department of Panchayati Raj,Commercial taxes, Food & Civil Supplies andother departments.Page 7

eTaal: All eGovernance applications will beintegratedwitheTaal(ElectronicTransaction Aggregation and AnalysisLayer).Mega Call Centre: A Mega Call Centre shallbe established in the State to get anindependentfeedbackfromthebeneficiaries and other stakeholders relatedwith various citizen centric schemes beingrun by different Government departmentsof the State. The objective for establishmentof Mega Call Centre should not only be tosensitize the citizens about differentGovernment schemes being run for theirbenefits but also to remove bottlenecks.Transformation from less paper topaperless: For improving the operationalefficiency, reduce turnaround time and tomeet the demands of the citizen charterandenhancetransparencyandaccountability of State Departments, eOffice is being implemented in theDepartments. In the First Phase, thisapplication shall be implemented for allintra-departmental functions/services likeleave approvals etc. In the Second phase,this application shall be implemented forinter-departmental functions/services.e-Village: A Government to Citizen (G2C)service delivery initiative “e-Village” hasbeen developed based on 2-I “Innovation &Improvement” Model to enable “Over thecounter (OTC)” delivery system dispersal ofvarious services/certificates. Efforts shall bemade for Over the Counter Delivery ofGovernment Services in the selected villagesfor faster and efficient delivery of servicesto the citizens.Computer Education in Schools/IT Literacy:The State Government shall be ensured thatthe children completing elementaryeducation get an exposure to basiccomputer skills in school. Training shall beimparted to all school teachers on usage ofcomputer/Information Technology in phasewise manner. Wi-Fi: The state government shall ensurethat specified Public Places, EducationalInstitutes, Tourist Places, Business Hubs etc.be made Wi-Fi enabled in a phased manneracross the State. Center for e-Governance: Centre for eGovernance (CeG)/State e-GovernanceMission Team (SeMT) shall be the nodalbody for the implementation of IT/eGovernance initiatives in State. CeG/SeMTin collaboration with the Projectimplementation team of the respectivedepartment shall take up the new initiativesin line with the vision of Government ofUttar Pradesh.3.1.6: DigitizationinformationofGovernmentAll public domain information like officialgazette notifications, Government Orders, acts,rules regulations, circulars, policies andprogramme documents would be digitized andmade available for electronic access on the webin a phased and time bound manner.3.1.7: Cyber Security Crimes and offences pertaining toconfidentiality, integrity, data security andnon-disclosure of agreements shall beviewed and scrutinized as per law. Government of UP would create awarenessabout online security. Government of UP would build jointcollaboration with industry and otherstakeholders for outreach campaign topromote awareness about cyber-crime.Page 8

Critical Information Infrastructure shall beidentified at by all the State Governmentdepartments/organizations. The State leveland each Department/Organization levelshall nominate/identify Chief InformationSecurity Officer (CISO) for protection ofCritical Information Infrastructure identifiedby the Departments. For this purpose,seniorlevelofficershavingtheirinvolvement in policy designing and decisionmaking shall be nominated.3.2.2:EstablishmentofSkillDevelopment /Incubation Centres: 3.1.8: Create Centers of Excellence(COE) for Innovation and R&D of ITServicesGovernment of Uttar Pradesh shall encourageestablishment of COE like BigData, cloudComputing etc. across the state to promoteR&D, Innovation and transfer of technology byprominent IT industry experts or incollaboration with leading institutions like IIMLucknow, IIT Kanpur, IIIT Allahabad, IT-BHU andother reputed and prominent institutions. Itwould connect COEs to facilitate exchange ofideas and promote greater collaboration amongIT experts.3.2.3: Bridging the Digital Divide: 3.2: Human Capital /Skill Development3.2.1: Capacity building Capacity building programs shall bepromoted through UP Skill developmentmission and similar schemes announced bythe Government from time to timeGovernment of Uttar Pradesh shallencourage existing skill developmentinstitutions like ITI’s and Polytechnic tocollaborate with IT majors to enhance andleverage their facilities and expertise.The state shall establish Skill DevelopmentCentres on a PPP model in the state toencourage youth from UP to improve theircapabilities and find employment in IT/ITeSdomain. These centers will be established incollaboration with IT/ITeS Industries,Association, Educational institutions.To encourage startups, Government started‘Plug n Play Model’ based Incubation centrefacility in Ghaziabad& Lucknow with ITUPVAN initiative. In addition to this, ruralincubation centres as e- SETU Centres arealso being setup at 13 district level inassociation with leading IT/ITeS Companiesto provide technical training, skilldevelopment & establish entrepreneurialsupport ecosystem in the state of UttarPradesh. The policy plan to scale up theabove mentioned centres across the state.It is acknowledged that different strata ofthe society and different locations of UP areon different level of IT development. Tobridge this gap, the state Government isdistributing laptops to meritorious students& empowering them with digitalinformation.3.2.4: Awards for e-Governance An Award Programme will be instituted torecognize excellence in areas such asEffective Public Service Delivery System,Business Process Re-engineering (BPR),Websites / Web Portals, m-Governance,Innovative Use of Social Media, Analyticaland Decision Support System etc. Exemplarycontribution of employees in e-Governanceinitiatives would also get due recognition.Page 9

3.2.5: Promotion of m-Governance3.3.1.4: Incentives for Certifications Government shall promote m-Governanceacross government services throughbuilding mobile based applications andcitizen services. Various mobile applicationssuch as m-Sehat, m-Swasthya, UPOne, UPBUS etc have been developed andimplemented by the State Departments.3.3: IncentivesThe following incentives are admissible toIT/ITeS units across the state of Uttar Pradeshfor period ending on 31st March 2020.Reimbursement of the cost incurred by anIT/ITeS Company operating in the State onsuccessfully securing quality & IT relatedcertifications such as Capability MaturityModel (CMM) level 2 upwards, ISO 27001for security, ISO 20000 for servicemanagement terminology, COPC, eSCMcertification with maximum reimbursementof 3 certifications with total limit of 25 lakhsper unit. The similar certifications related tothis sector shall be included from time totime.3.3.1: Fiscal Incentives3.3.1.5: Grant on EPF for Employmentgeneration3.3.1.1: Interest Subsidy An interest subsidy of 5% per annum for aperiod of 7years on the rate of interest paidon the loans obtained from ScheduledBanks/ Financial Institutions shall bereimbursed subject to a maximum of Rs. 1crore per annum per unit3.3.1.2: Stamp Duty 100% exemption of stamp duty onpurchase/lease of land/office space/buildings for IT/ITeS use with condition ofcommencing operations within 3 years3.3.1.3: Exemption of Electricity Duty 100% exemption on Electricity duty for newIT/ITeS units for a period of 5 years postcommencement of commercial operations100% reimbursement of the total EPFamount paid for IT/ITeS Professionals ofUttar Pradesh domicile with employmentfor continuous 1 year, after start ofcommercial operation, subject to theMaximum of INR 20 Lakhs per annum for 5years for a unit.3.3.1.6: Industrial promotion Subsidy Industrial Promotion Subsidy equivalent to50% of the incentives admissible for newunits (except rebate on land purchasedfrom State Agencies) would be admissible tothe existing units, if additional capitalinvestment for capacity enhancement tothe extent of 25% or more made in periodof 2 years by the IT units with turnover ofmore than or equal to INR 100 crores.Page 10

3.3.2: Other Incentives3.3.2.1: Provision for Land Rebate of 25% on the prevailing sector ratesshall be provided to IT/ITeS units onpurchase of land from state Agencies. Floor Area Ratio(FAR): FAR 3 and 1(Purchasable, as per building by-lawsprevalent at that time) applicable to IT/ITeSunits including IT City and IT Park IT/BPO units which employ a minimum of20 people and a maximum of 50 peopleshall be allowed to establish anywhereirrespective of the master plan or Land useclassification, barring public places, semipublic facilities, traffic and transport, parksand open spaces, green belt and agriculturalland usage.3.3.3: Non-Fiscal Incentives3.3.2.2: Incentives on Case to Case Basis IT/ITeS Mega Unit investments projects withthe proposed investment of more than INR200 Crores shall be considered for specialincentives.In order to promote ‘Ready to Move In’facility for IT/ITeS companies in the state, ITInfrastructure Private developers with ITInfrastructure development experience ofmore than 10 acres or investment of morethan INR 200 Cr. in last 5 years may beconsidered for incentives on case to casebasis for establishing more than 5acresITPark in Tier-II & Tier-III Cities in the state.The incentives shall be made available tothe developer on the condition of 75%utilization of FAR for IT facility for 10 yearsfrom the date of commercial operation. Exemption from the purview of the UPPollution Control Act, except in case ofpower generation sets of capacity ofmore than 25 KVA for IT/ITeS Industry. Exemption for IT/ITeS Industry frominspections under the following actsand rules framed there under, barringinspections arising out of specificcomplaints. The IT/ITeS industry are permitted tofile self certifications, in the prescribedformats for:I.The Factories ActII.The Maternity Benefit ActIII.The Shops & Establishments ActIV.TheContractLabour(Regulations & Abolition) ActV.The Payment of Wages ActVI.The Minimum Wages ActVII.The Employment Exchanges(Compulsory Notification ofVacancies) Act3.3.3.1: Uninterrupted Power Supply IT units setup in IT Cities / IT Parks onIndependent Feeder shall be provideduninterrupted power supply from StateUtility. The cost of provision of separateFeeder and separate Transmission Line willbe borne by the developer.The above mentioned incentives shall beprovided with due approval from theEmpowered committee.Page 11

3.3.3.2: 24x7 Operations Permission to IT and ITES companies to have24x7 operations (to run in three shifts) andemployment of women in all three shifts3.3.3.3: Applicability of Industrial Tariff Industrial Power tariff will be applicable toall IT/ITeS units from the effective date ofthis policy.3.3.5: ‘Start in Uttar Pradesh’(STARTUP) to promote startups culture &entrepreneurship in Uttar PradeshThe state Government shall promote thestartup culture using INFUSE model (INcubators– FUnd of Funds – Startup Entrepreneurs). TheFinancial support from the government shall beprovided to Incubators, Startups & VentureCapitalist funding the startups The Government of Uttar Pradesh shallestablish an initial Corpus (Seed fund) of INR100 Crores in phases to promote Incubatorsand mobilize startups in the state of UttarPradesh. The additional funding by theGovernment shall be done based on therequirement & scalability as decided by theempowered committee. The fund shall be in the form of fund offunds. In this model, the fund shall not beinvested directly into start-up companies,rather, it shall participate in SEBI-approvedVenture Capital funds/ SEBI-approved Angelfund or angel fund listed with authorizedinstitution of State or Central Govt. Thestate government shall match 25% of themoney invested by the VC subject to thecondition that the funding shall be doneonly to the startups based in Uttar Pradesh.The fund would be professionally managedlike a PE/Venture fund with industry leadersin the committee along with support fromprivate players and GoUP. The proportionate return from the startupsin terms of Debt/Equity shall be contributedback to the corpus. A permanent fund Manager shall benominated/appointed to manage thecorpus & fund of funds granted by the stateGovernment.3.3.4: Additional Incentives availableto MSME IT/ITeS units eimbursement up to 25% of lease /rentalcharges for the space for MSME IT/ITeS unitsand Incubators established in the stateoperating from leased / rented space in ITcities/IT Parks or any notified location, will beeligible with maximum limit of INR 10 lakhs peryear, for a period of 3 years for MSME IT/ITeSunits and for a period of 5 years for incubatorsfrom the date of commencement of commercialoperations.3.3.4.2: Power subsidy MSME IT/ITeS units shall be eligible for 25%subsidy on power bills for a period of 3years from the date of commencement ofcommercial operations or INR 30 lakhswhichever is earlier.Note: The financial incentives to be allowed toany of the unit from all the resources shall notbe more than 100% of the fixed capitalinvestment of the unit.Page 12

Department of IT & Electronics shall nominateits nodal agency to promote Incubators, IT/ITeSstartups, Accelerators &encourage HostInstitutions in the state. Host Institutionsseeking grant for setting up of Incubators fromthe state Government shall has to be registeredwith the Nodal Agency. The selection of HostInstitutions expressing intent to establishIncubators shall be decided by the EmpoweredCommittee.The start-up focus shall focus on followingdomains such as: Host Institutes shall be provided capitalgrant of max 50% for IT infrastructuresetup, subject to maximum of INR 25lakhs. The same limit shall be grantedfor strengthening existing Incubators incase of expansion subject to thecapacity utilization of the existingIncubator for 2 years. In case the grantneed to be exceeded from INR 25Lakhs upon the request of HostInstitutions,theEmpoweredCommittee shall decide the same oncase to case basis. The selected Incubators shall berequired to appoint minimum 2mentors (each from Academia fromreputed institute & prominent Industryperson) to be paid on honorary basisup to INR 2 Lacs per Annum. The selected incubators shall get thefinancial support up to the tune of 5Lacs per year for 5 years cov

IT/ITES/Electronic Hardware Manufacturing (EHM) industry, the Govt. of India notified the ITIR Policy 2008. State Government along with Central Government shall play a collaborative role in establishing ITIR in the state. Currently Government of Uttar Pradesh proposes to develop Information Technology Investment Region (ITIR) along