UP R&D Expenditure Reimbursement — 50% of R&D Costs Back, Up to ₹5 Cr

The R&D Expenditure Reimbursement is a subsidy run by the Government of Uttar Pradesh under its IT and ITeS Policy of 2022. It works differently from a typical startup grant: instead of funding a project in advance, the state pays back part of what a company has already spent on research and development, which lowers the real cost of building new technology in Uttar Pradesh.

The scheme is built around formally recognised research capacity. Standalone R&D centres, in-house R&D centres and design centres can all be covered, provided the recognition comes from CSIR/DSIR or the centre has been cleared by an Expert Committee. The centre must operate in the IT and ITeS sector and be based in Uttar Pradesh.

Support is not limited to one kind of spending. Capital and operational R&D costs both count, so equipment and day-to-day research work can feed into the same claim. A stated aim of the scheme is to make the state a more attractive base for technology companies and the skilled people they hire, and to help local firms compete on the strength of their own products and technology.

• Reimburses 50% of eligible R&D expenditure
• Capped at ₹5 crore per unit
• Claimable across five years from recognition or approval
• For CSIR/DSIR-recognised or Expert Committee-approved IT and ITeS R&D and design centres in Uttar Pradesh
• Capital and operational R&D costs both count
• Rolling applications — no fixed deadline

This incentive is open to R&D centres and design centres that work in the IT and ITeS sector and are based in Uttar Pradesh.

• Standalone R&D centres and in-house R&D centres both qualify, so a company does not need to be a dedicated research outfit.
• Design centres are covered as well.
• The centre must hold recognition from CSIR/DSIR, or be approved by the designated Expert Committee.
• The unit must be operating in Uttar Pradesh.

The claim is made by the unit that runs the recognised centre, and no separate founder-level criteria are specified for this scheme.

UP R&D Expenditure Reimbursement — 50% of R&D Costs Back, Up to ₹5 Cr is open to startups at any stage. It is open to startups registered anywhere in India.

UP R&D Expenditure Reimbursement — 50% of R&D Costs Back, Up to ₹5 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.

The benefit is a cash reimbursement rather than a loan or an equity investment.

• 50% of eligible R&D expenditure is paid back to the unit.
• The ceiling is ₹5 crore per unit.
• Claims can be spread across a five-year window, counted from when the centre was recognised or approved.
• Both capital expenditure and operational expenditure on eligible R&D activity count towards a claim.

Because the money returns after the spending has happened, the scheme functions best as a way to recover part of an existing R&D budget. Funds received back can be channelled into further research, product development or market expansion.

UP R&D Expenditure Reimbursement — 50% of R&D Costs Back, Up to ₹5 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.

There is no competitive pitch round here — claims are assessed administratively.

• Applications are screened by a dedicated committee within the Government of Uttar Pradesh or by an appointed implementing agency.
• The committee verifies the recognition status of the R&D or design centre, checking for CSIR/DSIR recognition or Expert Committee approval.
• Submitted documentation is reviewed to confirm that the claimed capital and operational expenditure is genuine and eligible.
• Claims must also comply with the financial guidelines set out in the IT and ITeS Policy of Uttar Pradesh 2022.
• Approval follows once every policy criterion is satisfied and the expenditure claims are validated.

Before you apply to UP R&D Expenditure Reimbursement — 50% of R&D Costs Back, Up to ₹5 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 R&D Expenditure Reimbursement — 50% of R&D Costs Back, Up to ₹5 Cr is best suited for startups in India seeking non-dilutive funding of ₹5Cr. If that describes your startup, review the eligibility criteria above before applying.