UP IT/ITeS Operating Expense Subsidy
By Government of Uttar Pradesh
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Quick Answer
Reimburses 10% of operating expenses for new IT/ITeS units in Uttar Pradesh for 5 years, capped at ₹20 crore a year.
- Funding amount
- Up to ₹100Cr
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh
- Application deadline
- Rolling
- Location
- Uttar Pradesh
About this subsidy
New IT/ITeS units in Uttar Pradesh, with a minimum fixed capital investment of ₹2 Crores, get 10% of eligible operating expenses reimbursed for five years from the start of commercial operations. The total is capped at ₹20 Crores per annum per unit. This is under the IT and ITeS Policy of Uttar Pradesh 2022.
Covered costs are lease rentals (office or co-working space, up to ₹50 per square foot a month), bandwidth from a licensed internet service provider, data center or cloud services from a provider based in Uttar Pradesh with a valid GSTIN, and power charges.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
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 ₹100Cr
What You Get
The program offers a 10% reimbursement on eligible operating expenses for a period of five years from the commencement of commercial operations. This substantial financial support is designed to ease the initial cost burdens for new IT/ITeS units. Covered expenses include:
- Lease Rentals: Reimbursement on expenditure incurred towards leasing office space, whether traditional offices or co-working spaces, subject to a maximum monthly rental of ₹50 per square foot.
- Bandwidth Expenses: Actual costs incurred on bandwidth connectivity that has been paid to a licensed internet service provider.
- Data Center/Cloud Service Costs: Actual costs for availing data center or cloud services, provided the service provider is based within Uttar Pradesh and holds a valid GSTIN under the Uttar Pradesh Goods and Services Tax Act.
- Power Charges: Actual power tariffs paid for energy units consumed during the operations of the IT/ITeS unit. The overall reimbursement amount is capped at ₹20 Crores per annum for each eligible unit. In addition to direct financial benefits, the policy implicitly offers incubation support through its recognition and reimbursement for units operating in co-working spaces, fostering a supportive environment for startup growth and operational efficiency within the state.
- Disbursement
- Reimbursement
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
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
Q: What is the Operating Expense Subsidy for New IT/ITeS Units?
A: This is a financial incentive under the IT and ITeS Policy of Uttar Pradesh 2022, offering reimbursement on specific operating expenses for eligible new IT/ITeS units establishing operations in Uttar Pradesh.
Q: Who is eligible for this subsidy?
A: New IT/ITeS units that establish their operations in Uttar Pradesh and have a minimum Fixed Capital Investment of ₹2 Crores are eligible.
Q: What types of expenses are covered under this scheme?
A: The subsidy covers 10% of operating expenses including lease rentals (up to ₹50 per sq ft/month), bandwidth expenses, data center/cloud service costs (from UP-based providers), and power charges.
Q: What is the maximum amount of subsidy an eligible unit can receive?
A: The reimbursement is capped at ₹20 Crores per annum for each eligible unit.
Q: For how long is this subsidy provided?
A: The subsidy is provided for a period of 5 years from the date of commencement of commercial operations of the IT/ITeS unit.
Q: Does this policy support units operating in co-working spaces?
A: Yes, the reimbursement for lease rentals is also available to units running their operations in co-working spaces.
Q: Are there any restrictions on service providers for data center/cloud costs?
A: Yes, the data center or cloud service provider must be based within Uttar Pradesh and hold a valid GSTIN under the Uttar Pradesh Goods and Services Tax Act.
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
