UP Capital Subsidy (Expansion IT/ITeS)
By Government of Uttar Pradesh
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Quick Answer
Eligible expansion IT/ITeS units in Uttar Pradesh get a capital subsidy of 10% on incremental Fixed Capital Investment, up to ₹50 crore.
- Funding amount
- Up to ₹50Cr
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh
- Application deadline
- Rolling
- Location
- Uttar Pradesh
About this subsidy
Under the IT and ITeS Policy of Uttar Pradesh 2022, eligible IT/ITeS units that expand can claim a capital subsidy of 10% on their incremental Fixed Capital Investment (FCI). The subsidy is capped at ₹50 crore per unit and does not have to be repaid.
Your incremental fixed capital investment must be at least ₹2 crore.
Eligibility
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Subsidy providers
The Government of Uttar Pradesh supports startups and businesses through a set of state policies, each run by a different department. This page covers the startup policy, which gives grants, reimbursements and free incubation to early startups, and the MSME, IT, food processing,…
Learn moreBenefits & Funding
- Amount
- Up to ₹50Cr
What You Get
Eligible IT/ITeS units undertaking expansion projects can claim a substantial capital subsidy. The program provides 10% on the incremental Fixed Capital Investment (FCI) made by the unit. This subsidy is capped at a maximum of ₹50 crore per eligible unit, offering significant financial relief and encouraging large-scale investments. Beyond the direct financial support, this policy aims to create a conducive environment for IT/ITeS sector growth, potentially leading to increased networking opportunities within the state's burgeoning tech ecosystem. This non-repayable subsidy reduces the capital expenditure burden, making expansion projects more viable and attractive for businesses.
- Disbursement
- Milestone Based
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process for the Capital Subsidy involves a meticulous review of all submitted applications. A dedicated committee, comprising officials from the Department of IT & Electronics and other relevant state departments, will assess each application against the eligibility criteria specified in the IT and ITeS Policy of Uttar Pradesh 2022. Key aspects such as the nature of the IT/ITeS unit, the quantum and genuineness of the incremental Fixed Capital Investment, and the potential impact on employment and regional development will be scrutinized. Further due diligence, including site visits or interviews, may be conducted for shortlisted units to verify information and project feasibility. The final decision will be based on the committee's recommendations, ensuring compliance with policy objectives.
Application Process
- 1
Review Policy
Thoroughly read the IT and ITeS Policy of Uttar Pradesh 2022 for detailed guidelines and criteria.
You - 2
- 3
- 4
- 5
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary purpose of this capital subsidy?
The capital subsidy aims to encourage existing IT/ITeS units in Uttar Pradesh to expand their operations by providing financial assistance on incremental Fixed Capital Investment, thereby fostering growth and employment in the sector.
What is the maximum subsidy an eligible unit can receive?
An eligible IT/ITeS unit can receive a maximum capital subsidy of ₹50 crore on their incremental Fixed Capital Investment.
Is there a minimum investment required to be eligible for this subsidy?
Yes, units must undertake a minimum incremental fixed capital investment of ₹2 crore to qualify for this subsidy.
Which types of businesses are eligible for this subsidy?
This subsidy is specifically designed for eligible expansion IT/ITeS (Information Technology and IT Enabled Services) units operating within Uttar Pradesh.
Is this a loan or a grant?
This is a capital subsidy, which is a non-repayable financial incentive, effectively a grant on fixed capital investment, not a loan.
Sources
Data on this page is compiled from official program and provider references.
News
- UP cabinet nod for first amendment to IT & ITeS policytimesofindia.indiatimes.com · 2 months ago
Source: Google News aggregated
