UP IT/ITeS Operating Expense Subsidy — 10% Reimbursement, ₹20 Cr a Year

The IT and ITeS Policy of Uttar Pradesh 2022 carries an operating cost support measure aimed at technology companies that set up fresh operations inside the state. Instead of handing over a single lump sum for a project, the scheme chips away at the recurring monthly bills a young unit pays — rent, connectivity, cloud or data centre usage and electricity — so that a new software development centre or IT-enabled services delivery outfit can hold its cost base down while it builds a client base.

It is run by the Government of Uttar Pradesh and is designed for units that begin commercial operations in the state and commit a fixed capital investment of at least ₹2 crore. Conventional leased offices and teams working out of co-working spaces are both treated as valid premises, which matters for smaller firms that would rather take desks than sign a long lease.

The support is a reimbursement of costs already incurred rather than an investment, so the state does not pick up a stake in the business. A qualifying unit can claim 10% of its eligible operating spend for five years, subject to a ceiling of ₹20 crore each year — which is where the scheme's headline figure of up to ₹100 crore comes from.

There is no fixed closing date. Applications are accepted on a rolling basis through the state's online portal at https://niveshmitra.up.gov.in/.

• Reimburses 10% of eligible operating costs for new IT/ITeS units
• Capped at ₹20 crore per unit per annum, for five years
• Minimum fixed capital investment of ₹2 crore required
• Covers lease rentals, bandwidth, data centre/cloud services and power charges
• Lease reimbursement calculated against a ceiling of ₹50 per sq ft per month, co-working spaces included
• Applications are open on a rolling basis — no fixed deadline

The scheme is built around two core conditions.

• Stage and sector: the applicant has to be a new IT or ITeS unit — a technology or IT-enabled services business setting up operations in the state.
• Location: those operations must be based in Uttar Pradesh.
• Capital investment: a minimum fixed capital investment of ₹2 crore is required.

Where the unit sits is flexible. The policy does not restrict the subsidy to conventional leased offices — units operating out of co-working spaces are explicitly covered, which opens the scheme to leaner teams that do not want a long-term lease.

The published criteria turn on stage, location and capital investment; a defined founder profile or ownership condition is not part of the eligibility test.

UP IT/ITeS Operating Expense Subsidy — 10% Reimbursement, ₹20 Cr a Year is open to startups at any stage. It is open to startups registered anywhere in India.

UP IT/ITeS Operating Expense Subsidy — 10% Reimbursement, ₹20 Cr a Year 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.

The benefit is a 10% reimbursement of eligible operating costs, running for five years from the point at which commercial operations start. Payouts are capped at ₹20 crore per unit per annum, so the maximum a single unit can recover across the full window is roughly ₹100 crore.

Four cost heads qualify:

• Lease rentals — office space taken on lease, or desks taken in a co-working facility. Reimbursement is calculated against a ceiling of ₹50 per square foot per month, so rent above that rate is borne by the company.
• Bandwidth — connectivity charges actually paid to a licensed internet service provider.
• Data centre and cloud services — actual costs incurred, on the condition that the service provider is based in Uttar Pradesh and holds a valid GSTIN under the Uttar Pradesh Goods and Services Tax Act.
• Power charges — the actual tariff paid for the energy units the IT/ITeS operation consumes.

Beyond the money, recognising co-working premises as eligible office space lets emerging tech firms use flexible, low-commitment workspaces while still drawing the reimbursement — useful for a new unit that wants to scale headcount without scaling its lease.

UP IT/ITeS Operating Expense Subsidy — 10% Reimbursement, ₹20 Cr a Year 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.

Before you apply to UP IT/ITeS Operating Expense Subsidy — 10% Reimbursement, ₹20 Cr a Year, 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 Operating Expense Subsidy — 10% Reimbursement, ₹20 Cr a Year is best suited for startups in India seeking non-dilutive funding of ₹100Cr. If that describes your startup, review the eligibility criteria above before applying.