IT and ITES Policy of Uttar Pradesh 2022 Rebate on Land

The IT & ITeS Policy of Uttar Pradesh 2022 is a state-policy launched by the Government of Uttar Pradesh (via the Department of IT & Electronics and implemented through the nodal agency Uttar Pradesh Electronics Corporation Ltd. (UPELC)). The policy aims to encourage investment, innovation and employment in the IT and ITeS sector in Uttar Pradesh. As part of its fiscal incentives for eligible IT/ITeS units, the policy includes a Rebate on Land benefit offering reimbursement on land purchase cost under certain conditions.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

25% reimbursement on the cost of land purchased in Uttar Pradesh: This means that when an eligible IT/ITeS unit purchases land for its operations in Uttar Pradesh, the state will reimburse 25 % of the land-purchase cost (within the scheme definitions) as a benefit.
Maximum rebate of ₹ 50 crore: The policy caps the reimbursement amount for the land-cost benefit at ₹ 50 crore per unit, so even if 25% of the land cost exceeds ₹ 50 crore, the maximum payable under this incentive is ₹ 50 crore.
Region-wise minimum employment per acre criteria: To avail the rebate, the unit must meet specified employment thresholds per acre depending on the region (for example, Bundelkhand/Poorvanchal/Taj Trapezium Zone might have lower threshold). This ensures that land purchase leads to real job creation.
Cost of land definition: The “cost of land” is defined as the purchase price recorded in the registered document, excluding stamp duty and registration charges. If allotment is from state agencies, the actual allotment price is used (excluding stamp duty & registration). For private land purchase, cost is the lower of prevailing circle rate or actual purchase price. This definition ensures standardisation and prevents inflated valuations.
Subject to policy conditions: The rebate is only available if the unit qualifies under the IT/ITeS Policy 2022 (new or expansion), is located in UP, begins commercial operations per policy timelines, meets employment criteria, etc. All documentation and registration requirements must be met.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Rebate on Land Purchase Cost	25% reimbursement of land cost, subject to maximum of ₹ 50 crore per unit	Example: Your IT/ITeS unit in Uttar Pradesh purchases land for ₹ 200 crore (registered cost). 25% of that = ₹ 50 crore. Since the cap is ₹ 50 crore, you receive ₹ 50 crore rebate. If land cost was ₹ 300 crore, 25% = ₹ 75 crore but reimbursement stays at ₹ 50 crore.
Definition of cost of land	Actual purchase price/allotment price (excluding stamp duty/registration); for private land lower of circle rate or actual purchase price	If you purchase private land and circle rate is ₹ 1500/sq ft but actual you paid ₹ 1800/sq ft, you will use ₹ 1500/sq ft as cost basis.
Employment criteria per acre	Minimum employment thresholds vary by region (Paschimanchal, Madhyanchal, Bundelkhand etc)	If your unit is in Bundelkhand region and the threshold is 100 employees per acre, you must employ 100 persons per acre for at least one year to qualify.

Eligibility Criteria

Who Can Apply:

Registered IT and ITeS units setting up new facilities in Uttar Pradesh.
Startups, MSMEs, or large enterprises in software development, BPO/KPO, data centers, or IT services.
Units purchasing land from UPSIDC, Industrial Development Authorities, or other government bodies.
Applicants registered under the IT and ITeS Policy 2022 and having valid PAN, GST, and Udyam/Startup registration (if applicable).
Companies meeting the minimum Fixed Capital Investment (FCI) thresholds as defined in the policy for “new units.”

Who Cannot Apply:

Units outside Uttar Pradesh or those not registered under the IT/ITeS policy.
Firms purchasing private land not approved or notified by a government agency.
Units already availing a land rebate from another government scheme for the same project.
Entities with loan defaults, blacklisting, or unpaid government dues.
Projects that do not commence construction or operations within the specified policy timeframe.

Documents Required

Certificate of Incorporation / Udyam Registration
Proof of registration under the IT and ITeS Policy 2022
Land allotment or sale deed issued by UPSIDC/IDA
Payment receipts for land purchase
Project report detailing proposed IT operations
PAN, GST, and bank details
Self-declaration confirming no double claim under other schemes

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.

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Option 2: Apply via Invest UP Portal

Visit invest.up.gov.in.
Navigate to IT and ITeS Policy 2022 → Fiscal Incentives → Land Rebate.
Download and fill the Application Form for Land Cost Rebate.
Upload supporting documents including land purchase deed, proof of payment, and policy registration certificate.
Submit online; the Directorate of IT & Electronics verifies and forwards it for approval.

Option 3: Apply through District Industries Centre (DIC)

Submit an application physically or through the Single Window Portal.
DIC reviews compliance and forwards the case to the State Level Empowered Committee for final sanction.

Power Combos with The Scheme