UP Capital Subsidy for IT/ITeS Expansion — 10% of FCI, Up to ₹50 Cr — Frequently Asked Questions
Answers to the questions founders most often ask about UP Capital Subsidy for IT/ITeS Expansion — 10% of FCI, Up to ₹50 Cr — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
How much money does the UP Capital Subsidy give an expanding IT/ITeS unit?
The subsidy covers 10% of the incremental Fixed Capital Investment your expansion project creates, and the total payout is capped at ₹50 crore per eligible unit. How much you actually receive therefore depends on how much fresh capital investment you commit.
What is the minimum investment I need to make to qualify?
Your expansion must involve an incremental fixed capital investment of at least ₹2 crore. Only the incremental portion counts towards the calculation — the fixed assets your unit already holds do not form part of the base.
Which businesses can apply for this subsidy?
It is meant for existing IT and IT-enabled services units operating in Uttar Pradesh that are carrying out an expansion project. The scheme is not aimed at units being set up from scratch, and the policy text does not cover sectors outside IT/ITeS.
Is this a loan, a grant or an equity investment?
It is a capital subsidy — effectively a grant on fixed capital investment. The money does not have to be repaid, and the Government of Uttar Pradesh does not take any equity or shareholding in your company in return.
Is there a deadline to apply?
No. Applications run on a rolling basis and the window is always open, so you can apply once your expansion plan and investment figures are ready to be documented.
Do I need DPIIT or MSME registration to apply?
The scheme details available do not list a DPIIT or MSME registration requirement. Eligibility turns on your unit being an IT/ITeS unit in Uttar Pradesh with a qualifying expansion, so confirm the current conditions in the IT and ITeS Policy of Uttar Pradesh 2022 before you apply.
What documents will I need to submit?
You will typically need proof that your unit is already in operation in the state, a clear investment plan for the incremental Fixed Capital Investment, your financial statements, and any certificates or declarations the policy prescribes. The full checklist is set out in the policy document.
How do I apply for the capital subsidy?
Start by reading the IT and ITeS Policy of Uttar Pradesh 2022 for the detailed conditions, then put together an application that shows compliance with all of them, including the numbers behind your expansion. Submissions go to the designated authority through the state's Nivesh Mitra portal at https://niveshmitra.up.gov.in/, with the Department of IT & Electronics handling the process.
What happens after I submit my application?
Your application enters a screening and evaluation phase. A committee of officials from the Department of IT & Electronics and other state departments reviews it against the policy conditions, looking at the nature of the unit, the size and genuineness of the claimed investment, and the likely employment and regional impact. Shortlisted applicants may also be asked to undergo a site visit or interview before a final decision is taken.
Which policy does this subsidy come under?
It is one component of the IT and ITeS Policy of Uttar Pradesh 2022, the state government's framework for growing technology and technology-enabled services businesses within Uttar Pradesh.
Who is eligible to apply for UP Capital Subsidy for IT/ITeS Expansion — 10% of FCI, Up to ₹50 Cr?
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.
Who offers UP Capital Subsidy for IT/ITeS Expansion — 10% of FCI, Up to ₹50 Cr?
UP Capital Subsidy for IT/ITeS Expansion — 10% of FCI, Up to ₹50 Cr is offered by Government of Uttar Pradesh, a government body. It is provided as non-dilutive funding.
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