Uttar Pradesh Startup Policy 2020 (First Amendment-2022)

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Key Policy Highlights

UP Startup Policy 2020 (Amendment 2022)

The Startup Policy 2020 is valid for five (5) years from the date of its notification, and it supersedes all the clauses pertaining to the startup section of previous policies i.e. UP IT & Startup Policy 2016 and UP IT & Startup Policy 2017-2022.

The goal is to be among the top 3 states in Start Up ranking, establish/support a minimum of one incubator in each district of the state and create an ecosystem for at least 10,000 startups in the state. The goals defined in Uttar Pradesh Startup Policy, 2020 are:

  • To be among Top 3 States in the “States’ Startup Ranking” conducted by Startup India
  • Establish 100 Incubators, a minimum of one in each district of the State
  • Develop a minimum of One Million square feet of incubation/acceleration space for startups
  • Create the ecosystem for at least 10,000 startups in the State
  • Establish 8 state-of-the-art Center of Excellence (CoEs)
  • Establish India’s largest Incubator in Lucknow

Broad pillars of Uttar Pradesh Startup Policy


  • Sustenance allowance at the rate of INR 17,500 per month per startup for a period of one year up to 25 startups per incubator per year shall be given to startups at the idea stage.
  • Prototype grant of up to INR 5 Lakhs is provided to startups to get their Minimum Viable Product ready.
  • Seed Capital/Marketing Assistance to support startups through early-stage funding for maturing their ideas/ concepts. The seed capital is given in the form of Marketing Assistance up to INR 7.5 Lakhs per startup to upto 25 startups per incubator per year to launch the Minimum Viable Product (MVP) in the market.
  • The cost of filing of successful patent shall be reimbursed to the incubated startups for Indian as well as foreign awarded patents: INR 2 Lakhs for Indian patents and INR 10 Lakhs for International Patents.
  • Reimbursement to startups for participation in events – upto INR 50,000 for national events and INR 1 Lakh for international events.
  • Startups having women/ Transgender/ Divyangjan cofounders with more than 26% equity shall be eligible to get additional 50% incentives on Sustenance Allowance and Seed Capital.
  • Additional 50% shall also be given to startups having registered offices/operations in Purvanchal/ Bundelkhand regions or cofounders hailing from Economically Weaker Sections (EWS).
  • Incubators are supported with Capital grant on setting up/scaling up technology infrastructure up to maximum INR One (1) Crore or INR 1.25 crore if they are established in Purvanchal/Bundelkhand regions.
  • Financial support to incubators up to INR 30 Lakhs per year to cover operational expenditure for 5 years or until self-sustainable whichever is earlier.
  • A matching grant of upto INR 1 Lakh per startup, maximum INR 10 Lakh per program shall be given to competent institutions, upto 5 program per institution per year to run acceleration program of minimum 12 weeks for supporting the startups. Maximum 100 such programs could be organized in a year under the policy

Nodal Agency: UP Electronics Corporation Ltd, Deptt of IT & Electronics

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