Uttar Pradesh Startup Policy 2020: Complete Guide
Incentives, eligibility and how to apply for the UP Startup Policy 2020 (First Amendment 2022).
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