Uttar Pradesh Startup Policy 2020
Sector Overview :
The Uttar Pradesh Startup Policy 2020, recently amended in 2022, is a comprehensive initiative designed to foster a thriving startup ecosystem in the state of Uttar Pradesh (UP). The policy is valid for five years from its notification date and supersedes previous policies (UP IT & Startup Policy 2016 and UP IT & Startup Policy 2017-2022). This policy aims to position UP among the top three states in the "States’ Startup Ranking" conducted by Startup India.
Sector Overview
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The Uttar Pradesh Startup Policy 2020 (First Amendment 2022) is a strategic and comprehensive framework designed to position UP as a leader in the startup ecosystem. By fostering innovation, providing substantial fiscal incentives, and creating a supportive infrastructure, UP aims to attract and nurture startups, investors, and incubators alike.
Startups, investors, and incubators are encouraged to take full advantage of this policy to catalyse growth and innovation in the state.
Startups, investors, and incubators are encouraged to take full advantage of this policy to catalyse growth and innovation in the state.
Objectives
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- Top 3 Ranking :To be among the top three states in the "States’ Startup Ranking".
- Incubation Support : Establish and support a minimum of one incubator in each district, with a total goal of 100 incubators across the state.
- Ecosystem Development :Create an ecosystem to support at least 10,000 startups.
- Physical Infrastructure :Develop a minimum of One Million square feet of incubation/acceleration space.
- Centres of Excellence :Establish eight state-of-the-art Centres of Excellence (CoEs).
Enablers
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Supporting Startups Through Incubators
- Sustenance Allowance : INR 17,500 per month per startup for one year, up to 25 startups per incubator annually.
- Prototype Grant :Up to INR 5 Lakhs to help startups develop their Minimum Viable Product (MVP).
- Seed Capital/Marketing Assistance :Early-stage funding of up to INR 7.5 Lakhs per startup to launch the MVP in the market.
Creating Sustainable Funding Models
- Capital Grant for Incubators:
- Private host institutes can get capital grants up to 50% of the eligible amount, subject to a maximum of INR 1 Crore (INR 1.25 Crore for those in the Purvanchal/Bundelkhand regions).
- Government host institutes receive capital support in exceptional cases only, but will continue to serve as the first point of contact for startups.
- Operational Expenditure :
- Financial support of up to INR 30 Lakhs per year for five years or until self-sustainability is achieved, whichever is earlier.
- This support is contingent on incubator performance, evaluated through an Incubator Performance Evaluation Framework.
- Acceleration Programs :
- Matching grants up to INR 1 Lakh per startup, with a maximum of INR 10 Lakhs per program.
- Up to 100 programs can be organized annually under this policy.
Investment and Financial Incentives
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- Capital Grant :
- Up to 50% reimbursement on setting up/scaling up technology infrastructure, capped at INR 1 Crore (INR 1.25 Crore for Purvanchal/Bundelkhand regions).
- Operational Expenditure :
- Financial support up to INR 30 Lakhs per year for five years or until self-sustainability is achieved.
- Acceleration Programs :
- Matching grants up to INR 1 Lakh per startup, with a maximum of INR 10 Lakhs per program.
- Up to 100 such programs can be organized annually.
