UP Standalone R&D Unit Reimbursement Scheme — Up to ₹10 Cr

The Reimbursement for Standalone R&D Units is one of the incentives written into Uttar Pradesh's Industrial Investment & Employment Promotion Policy 2022. It is offered by the Government of Uttar Pradesh and is designed to draw serious, dedicated research infrastructure into the state by paying back a portion of what those facilities spend on research and development.

The scheme is narrow by design. It applies to standalone R&D units — research facilities that are not embedded inside a larger manufacturing operation — and it asks for a substantial commitment in return: a minimum eligible capital investment of ₹20 crore, premises that are clearly demarcated as an R&D facility, and formal recognition from the Department of Scientific and Industrial Research (DSIR). Across the entire policy period, only 10 units can be supported.

The reasoning behind the incentive is that long-horizon R&D carries heavy infrastructure and operational costs, and a partial refund makes those costs easier to justify. By offsetting part of that expenditure, the state aims to encourage technological advancement and build a more supportive environment for cutting-edge research across its industrial sectors.

There is no closing date — the scheme runs on a rolling basis. Industrial incentive claims under the state's policy are routed through the Nivesh Mitra portal at https://niveshmitra.up.gov.in/.

• 25% of eligible R&D expenditure is reimbursed by the Government of Uttar Pradesh.
• The reimbursement is capped at ₹10 crore per unit.
• Requires a minimum eligible capital investment of ₹20 crore and a clearly demarcated facility.
• DSIR registration is mandatory — the unit must be recognised by the Department of Scientific and Industrial Research.
• Payout is staged: 50% on approval, 25% after 3 years, 25% after 5 years, tied to committed outcomes.
• Only 10 units can be supported over the policy period; applications are rolling, with no deadline.

This incentive is reserved for standalone R&D units operating in Uttar Pradesh, and the entry bar is set high on purpose.

• The unit must be standalone — a facility dedicated to research and development in its own right, rather than an R&D department sitting inside a larger business.
• Minimum eligible capital investment of ₹20 crore is required for the unit to qualify.
• The facility must be clearly demarcated as an R&D unit.
• DSIR registration is mandatory. The unit has to be officially recognised by the Department of Scientific and Industrial Research.
• Only 10 units can be supported across the entire policy period, so selection is genuinely limited.

On the entity question, standalone R&D units are typically legally registered businesses — Private Limited Companies, Limited Liability Partnerships (LLPs), One Person Companies (OPCs) or Partnerships — that are exclusively dedicated to research and development activity and that meet the capital investment threshold.

UP Standalone R&D Unit Reimbursement Scheme — Up to ₹10 Cr is open to startups at any stage. It is open to startups registered anywhere in India.

UP Standalone R&D Unit Reimbursement Scheme — Up to ₹10 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 scheme works as a reimbursement, not an upfront grant. Your unit spends on R&D first, and the state refunds a share of that eligible expenditure.

• 25% of eligible R&D expenditure is reimbursed.
• The reimbursement is capped at ₹10 crore.
• The support is paid in a fixed three-stage schedule: 50% of the approved amount on project approval, 25% after three years, and the final 25% after five years.
• The later tranches are contingent on the unit achieving the outcomes it committed to, so funding continues only alongside delivery.

Because this is a subsidy-style reimbursement, the money is non-dilutive — the Government of Uttar Pradesh does not take an equity stake in the unit in exchange for it. The phased structure is meant to keep capital flowing into long-duration research work, covering R&D operations, infrastructure and innovation-led projects over a five-year horizon.

UP Standalone R&D Unit Reimbursement Scheme — Up to ₹10 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 go through an administrative and technical review by the relevant state government departments. That review covers three things in particular: whether the unit genuinely qualifies as a standalone R&D unit, whether the eligible capital investment and the claimed expenditure hold up, and whether DSIR registration is in place.

Because the scheme is capped at 10 units, applications are assessed against the policy guidelines rather than simply waved through. Departments are expected to weigh how well an application complies with the stipulated conditions and what impact the proposed R&D activity is likely to have. Where the response is heavy, the scheme may operate either on a first-come, first-served basis or through a competitive assessment of oversubscribed applications.

Once the review is complete, the applicant is contacted with the outcome of the reimbursement claim.

Before you apply to UP Standalone R&D Unit Reimbursement Scheme — Up to ₹10 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 Standalone R&D Unit Reimbursement Scheme — Up to ₹10 Cr is best suited for startups in India seeking non-dilutive funding of ₹10Cr. If that describes your startup, review the eligibility criteria above before applying.