UP announces incentives for IT/BPO, realty

To lure the Business Process Outsourcing and IT/ITeS industry, the Mayawati government in Uttar Pradesh has showered various sops. The realty sector, too, has been blessed with many relaxations.

IT majors and BPOs setting up units in UP will get 100 per cent relaxation in stamp duty. Those setting up call centres can now get a land lot in UP on easier terms. In a meeting of the state cabinet chaired by the CM on Friday, all development authorities in the state have been directed accordingly. IT companies have been given huge relaxations in the lease rent on land allotted to them. IT and BPO industries can now complete construction on the land allotted to them in five years instead of three years.

The government has decided to reduce the lease rent on commercial land by more than 60 per cent. The cabinet also decided that those getting a commercial plot through open bidding by March 31, 2010, will have to pay just one per cent lease rent instead of the earlier rate of 2.5 per cent. In case the allottee is making a one-time payment, the lease rent payable will be 11 per cent instead of the existing 27.5 per cent. Those realty companies which have failed to pay the cost of the land allotted to them have been given the option to reschedule their payment mode.

Defaulter realty companies can now pay the cost of land over 10 years. This facility will be available till the end of this financial year only.