UP IT/ITeS Capital Subsidy Scheme 2022 — 10% FCI Back, Up to ₹50 Cr

The UP IT/ITeS Capital Subsidy Scheme 2022 is a state incentive from the Government of Uttar Pradesh that hands back part of the money a new information technology or IT-enabled services unit puts into its fixed assets. It operates as one of the incentives inside the state's IT and ITeS Policy of Uttar Pradesh 2022, administered through the Department of IT & Electronics.

A qualifying unit earns a capital subsidy equal to 10% of its Fixed Capital Investment (FCI), subject to an overall ceiling of ₹50 Crores. The scheme is built for serious projects: a minimum capital investment of ₹5 Crores is needed before a unit enters the calculation, which puts it in reach of mid-sized and large IT/ITeS ventures rather than very small setups.

The logic behind the incentive is to draw fresh technology investment into Uttar Pradesh and to keep companies already there expanding. By absorbing a share of the capital cost, it lowers the burden of building and equipping a facility, which in turn makes large-scale projects easier to justify.

Payouts are deliberately spread out. The subsidy is released in five annual instalments, each capped at ₹10 Crores, and the schedule begins once the unit starts commercial operations. The money is non-repayable and takes no equity. Applications run on a rolling basis, so there is no closing date to work against.

• Capital subsidy of 10% of a unit's Fixed Capital Investment, capped at ₹50 Crores
• Minimum capital investment to qualify is ₹5 Crores
• Paid in five annual instalments of no more than ₹10 Crores each
• Instalments begin after the unit commences commercial operations
• Non-repayable subsidy — no equity is given up
• Applications accepted on a rolling basis, with no fixed deadline

Eligibility here is defined by the project and its investment, not by the founder.

• Business type: the applicant must be an eligible IT or ITeS unit. Software development, BPO, KPO, data centres and closely related technology services sit within that description.
• Minimum investment: the unit must commit to a capital investment of at least ₹5 Crores. Anything below that threshold falls outside the scheme.
• Location: the fixed capital investment has to be made in Uttar Pradesh, which in practice means the unit is set up and operating in the state.
• Entity and registrations: DPIIT recognition, MSME registration or a particular company structure are not listed among the scheme's conditions.
• Founder criteria: no separate founder-level requirements are specified.

Since the instalment schedule is tied to operations, a unit also needs to reach the commercial operations stage to actually draw the subsidy.

UP IT/ITeS Capital Subsidy Scheme 2022 — 10% FCI Back, Up to ₹50 Cr is open to startups at any stage. It is open to startups registered anywhere in India.

UP IT/ITeS Capital Subsidy Scheme 2022 — 10% FCI Back, 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.

A qualifying unit receives a capital subsidy worth 10% of its Fixed Capital Investment, with the total payout capped at ₹50 Crores. It is a subsidy, so the money is non-repayable and no equity changes hands.

Disbursal is spread rather than lump-sum:

• The subsidy is released across five annual instalments.
• The schedule starts after the unit commences commercial operations.
• No single instalment exceeds ₹10 Crores.

Stretching the payout across five years keeps support coming through the early, cash-hungry period of running a new facility. For a company making a large capital outlay, the incentive lowers the effective cost of that investment and reduces the risk attached to committing that scale of capital in Uttar Pradesh.

UP IT/ITeS Capital Subsidy Scheme 2022 — 10% FCI Back, 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.

Applications are reviewed by a dedicated committee set up by the Department of IT & Electronics, Government of Uttar Pradesh.

The committee's assessment focuses on three things:

• Confirming that the applicant is genuinely an IT or ITeS unit.
• Verifying the quantum of Fixed Capital Investment claimed, along with the proposed business plan behind it.
• Checking that the proposal complies with the terms and conditions set out in the IT and ITeS Policy of Uttar Pradesh 2022.

Projects that demonstrate a clear potential to contribute to the state's economy and to create jobs are prioritised. Final approval rests on the committee's assessment and the project's adherence to the policy guidelines, with selections made on merit.

Before you apply to UP IT/ITeS Capital Subsidy Scheme 2022 — 10% FCI Back, 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 IT/ITeS Capital Subsidy Scheme 2022 — 10% FCI Back, 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.