What is the UP Startup Policy?
The Uttar Pradesh Startup Policy 2020 (First Amendment 2022) is the state’s flagship framework for building a startup ecosystem, notified by the Department of IT & Electronics, Government of Uttar Pradesh. It is valid for five years from notification and supersedes the earlier UP IT & Startup Policy 2016 and 2017–2022. The policy is industry-agnostic, covering startups across all sectors.
Role of the Nodal Agency
A Nodal Agency under the Department of IT & Electronics implements the policy, acting as a single window for all ecosystem stakeholders – startups, incubators, and investors. It runs a dedicated Project Management Unit (PMU) and reports to a Steering Committee chaired by the Chief Minister of Uttar Pradesh.
Policy Goals
- Rank among the Top 3 states in Startup India’s State Startup Ranking
- Establish 100 incubators – at least one in every district
- Develop 1 million+ sq. ft. of incubation/acceleration space
- Build an ecosystem supporting at least 10,000 startups
- Set up 8 state-of-the-art Centers of Excellence (CoEs)
- Establish India’s largest incubator in Lucknow
Incentives for Startups
- Sustenance allowance: ₹17,500/month per startup for one year
- Prototype grant: up to ₹5 lakh to help build the MVP
- Seed capital/marketing assistance: up to ₹7.5 lakh to launch the MVP
- Patent reimbursement: up to ₹2 lakh (Indian patents), up to ₹10 lakh (international patents)
- Event participation reimbursement: up to ₹50,000 (national events), up to ₹1 lakh (international events)
Additional incentives:
- Startups with women/transgender/Divyangjan co-founders holding 26%+ equity get an extra 50% on Sustenance Allowance and Seed Capital
- The same 50% top-up applies to startups based in Purvanchal/Bundelkhand, co-founders from Economically Weaker Sections (EWS), or startups in rural impact, circular economy, sustainability, renewable energy & climate change sectors
Incentives for Incubators
- Capital grant up to ₹1–1.25 crore for tech infrastructure (higher rate for Purvanchal/Bundelkhand incubators)
- Operational funding up to ₹30 lakh/year for 5 years or until self-sustaining
- Matching grant up to ₹1 lakh per startup (max ₹10 lakh per program) for acceleration programs of 12+ weeks, up to 5 programs/incubator/year
Incentives for Centers of Excellence (CoEs)
- Grant-in-aid up to ₹10 crore over 5 years from establishment
- Each CoE will house 100 promising startups working in Quantum Computing, AI/ML, Blockchain, Additive Manufacturing, AR/VR, Drones, Robotics, 5G, SpaceTech, DefenseTech, Agri-tech, EdTech, HealthTech and other priority areas
Key Highlights at a Glance
| Support Area | Benefit |
|---|---|
| Sustenance Allowance | ₹17,500/month for 1 year |
| Prototype Grant | Up to ₹5 lakh |
| Seed Capital/Marketing | Up to ₹7.5 lakh |
| Indian Patent Reimbursement | Up to ₹2 lakh |
| International Patent Reimbursement | Up to ₹10 lakh |
| Incubator Capital Grant | Up to ₹1–1.25 crore |
| Incubator Operational Support | Up to ₹30 lakh/year (5 yrs) |
| CoE Grant-in-Aid | Up to ₹10 crore (5 yrs) |
Why Apply Through Subsidy4India?
- End-to-end eligibility assessment for UP Startup Policy incentives
- Documentation and application support for grants, seed capital, and patent reimbursements
- Guidance on incubator empanelment and CoE engagement
Source: StartinUP – Government of Uttar Pradesh, State Startup Policy
