UP Capital Subsidy for IT/ITeS Expansion — 10% of FCI, Up to ₹50 Cr

This incentive sits inside the IT and ITeS Policy of Uttar Pradesh 2022, which the state government designed to pull fresh investment into its technology and technology-enabled services base. The subsidy is reserved for units that already operate in Uttar Pradesh and are now scaling up, rather than for companies setting up from zero.

An expanding IT/ITeS unit that commits new money to fixed assets can claim back 10% of that incremental Fixed Capital Investment. The payout is capped at ₹50 crore. Because the support is structured as a capital subsidy, the money is not repaid and the promoter's shareholding is not touched.

The state's reason for writing these cheques is straightforward: more capital deployed on the ground, more people hired, and a denser technology ecosystem across Uttar Pradesh. There is no closing date to chase — applications are accepted continuously.

• Subsidy of up to ₹50 crore for an eligible expanding unit
• Calculated as 10% of incremental Fixed Capital Investment
• Minimum incremental fixed capital investment of ₹2 crore
• Only for IT/ITeS units expanding in Uttar Pradesh
• Non-repayable and non-dilutive — no equity is taken
• Rolling applications, no fixed deadline

The scheme is tightly scoped. It is open to existing IT/ITeS units in Uttar Pradesh that are undertaking an expansion project — it is not framed as a scheme for greenfield units starting from scratch, and the policy text does not extend it to businesses outside the IT and IT-enabled services sectors.

The number that decides most cases is the size of the expansion. The unit must be committing at least ₹2 crore of incremental fixed capital investment in the project. Only that incremental amount is measured; assets the unit already owns are not treated as part of the base for the subsidy.

Because approvals are judged against the conditions laid down in the IT and ITeS Policy of Uttar Pradesh 2022, what really settles eligibility is being able to evidence that the unit is operational, that the investment plan is genuine, and that its financials and statutory declarations stand up to scrutiny.

UP Capital Subsidy for IT/ITeS Expansion — 10% of FCI, Up to ₹50 Cr is open to startups at any stage. It is open to startups registered anywhere in India.

UP Capital Subsidy for IT/ITeS Expansion — 10% of FCI, Up to ₹50 Cr accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

• 10% of the incremental Fixed Capital Investment created by the expansion project.
• A maximum of ₹50 crore per eligible unit.
• Non-repayable money — this is a subsidy, not a loan that has to be returned with interest.
• No equity and no dilution — the state takes no shares in the business for the support it gives.

What qualifies as Fixed Capital Investment is defined by the policy's own rules, and the subsidy attaches only to the fresh investment the expansion brings in. That means the size of the claim scales with the size of the qualifying outlay, right up to the ₹50 crore ceiling.

The practical effect for a founder is a materially lower net cost on a capex-heavy expansion: instead of funding the entire fixed-asset outlay from the balance sheet or from debt, a tenth of it can come back from the state. Alongside that, the policy's wider aim is to make Uttar Pradesh a more attractive place for IT/ITeS businesses to grow, with more activity and more hiring in the local technology ecosystem.

UP Capital Subsidy for IT/ITeS Expansion — 10% of FCI, Up to ₹50 Cr is offered by Government of Uttar Pradesh, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

Nothing here is auto-sanctioned. Every application passes through a screening and evaluation phase before any subsidy is confirmed.

A committee made up of officials from the Department of IT & Electronics and other concerned state departments examines each submission against the conditions set out in the IT and ITeS Policy of Uttar Pradesh 2022.

• Whether the applicant genuinely fits the IT/ITeS unit description the policy uses.
• The quantum of the incremental Fixed Capital Investment being claimed, and how genuine it is.
• The employment the expansion will generate and its impact on regional development.

Applicants who clear this round may face further due diligence, including site visits or interviews, to verify the figures and confirm the project is actually feasible. The final decision follows the committee's recommendation, which is expected to align with the policy's objectives.

Before you apply to UP Capital Subsidy for IT/ITeS Expansion — 10% of FCI, Up to ₹50 Cr, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

UP Capital Subsidy for IT/ITeS Expansion — 10% of FCI, Up to ₹50 Cr is best suited for startups in India seeking non-dilutive funding of ₹50Cr. If that describes your startup, review the eligibility criteria above before applying.