Uttar Pradesh

Uttar Pradesh Startup Policy 2020

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Nodal Agency

Department of IT & Electronics, Government of Uttar Pradesh.

Office Address

1st Floor, UPLC, Navchetna Kendra, 10 Ashok Marg, Lucknow 226001

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DIPP Recognised Startups
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Women-Led Startups/Women Entrepreneurs
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Key Sector

Download
Policy Document

Industry-wise distribution of Startups

Stage-wise distribution of Startups

Startups which have self-declared funding

Startups which have declared receipt of awards

Uttar Pradesh Incentives

As per the State Startup Ranking Framework issued on 18th February 2019 by DPIIT, Government of India , state startup policies must provide seed funding support in following ways e.g. Direct Government grant, Subsidized loan, Equity seed funding, Product development/marketing financial assistance and Monthly sustenance allowance. Therefore, policy introduces seed funding support in the form of Sustenance Allowance and Seed Capital for marketing the products/ideas as per following:

1 Sustenance Allowance

Type of Benefit	Fiscal
Benefit Details	Sustenance allowance at the rate of INR 15,000 per month per startup for a period of one-year upto 10 startups per incubator per year shall be given to startups at the idea stage. This incentive shall be given to only those startups founders which are financially needy. The criteria to identify needy startups shall be approved by PMIC.

2 Seed Capital/Marketing Assistance

Type of Benefit

Fiscal

Benefit Details

It is important to support startups through early stage funding for maturing their ideas/ concepts. The objective is to encourage innovators to stimulate commercialization of their inventions and to help in validating Proof of Concept. The seed capital will be given in the form of Marketing Assistance upto INR 5 Lakhs per startup upto 10 startups per incubator per year to launch the Minimum Viable Product (MVP) in the market. The seed capital will be disbursed in milestone-based installments (e.g. 40% + 30% + 30%) in three tranches, the first being advance and remaining two on completing the milestones. On disbursement of first installment, Startups shall have to commit Key Performance Targets to the PIU on which they will be assessed before releasing the second and third installments of the grant.
An evaluation committee will be set up for approval of grant demands from startups and will be sanctioned/disbursed only on the recommendations of the evaluation committee. This committee will be led by the eminent experts from institutions such as STPI, IIT Kanpur, IIM Lucknow etc. on nomination basis or as decided by the PIU and would also consist of other eminent stakeholders from the startup ecosystem.

Note: Additional 50% shall be given to startups founded/co-founded by women/divyangjan/ transgender or startups having 50% or more women/ divyangjan/Transgender employees or startups having registered offices/operations in Purvanchal/ Bundelkhand regions for both Sustenance Allowance and Seed Capital/Marketing Assistance, or Startups founded/co-founded by persons from Economically Weaker Section (EWS).

3 Support to startups

Type of Benefit	Fiscal
Benefit Details	Free incubation shall be provided for 6 months at government owned/managed Largest Incubator, AKTU Innovation Hub and the proposed 3 Center of Excellences. Performance of the startups shall be evaluated at the end of six months and the incubation can be extended for six more months on satisfactory report. Overall free incubation period shall not be more than 12 months period.

4 Patent filing cost

Type of Benefit	Fiscal
Benefit Details	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.

5 Event participation

Type of Benefit	Fiscal
Benefit Details	Reimbursement to startups for participation in events – upto INR 50,000 for national events and INR 1 Lakh for international events. This is applicable to all GOI registered startups which are incorporated in Uttar Pradesh. The condition of mandatory incubation through GoUP recognised incubators shall not be applicable in this case.

1 Capital grant

Type of Benefit

Fiscal

Benefit Details

Capital grant on setting up/scaling up technology infrastructure for the private host institutes shall be reimbursed upto 50 percent of the eligible amount subject to maximum limit of INR One (1) Crore, first installment to be capped at 25 percent of the maximum limit. The demand for the same shall be raised on quarterly basis by incubators. The limit of INR 1 crore shall be increased to INR 1.25 crore for incubators established in Purvanchal/Bundelkhand regions.
Capital grant to government host institutes shall be given in exceptional cases only post approval by PMIC. However, despite not getting the capital support, government incubators will continue to act as first point of contact for startups on behalf of Startup Nodal Agency.

2 Operational Expenditure

Type of Benefit

Fiscal

Benefit Details

Financial support to incubators upto INR 30 Lakhs per year to cover operational expenditure for 5 years or until self-sustainable whichever is earlier. This incentive shall be granted to those incubators which have 10 or more startups incubated. The year-on-year continuation of operational expenditure support shall be solely dependent on incubator’s performance assessed through Incubator Performance Evaluation Framework released by Nodal Agency and approved by PMIC.

3 Acceleration Programs

Type of Benefit

Fiscal

Benefit Details

Acceleration programs are short to medium term mentoring programs to support startups with business expansion once they have scaled up from an idea to formal product launch in the market.
A matching grant of INR 5 Lakhs per year (Maximum INR 2 Lakhs per program) shall be given to competent institutions (upto 25 institutions per year) to run acceleration programs for supporting the startups. Acceleration programs with minimum 10 startups participating shall be eligible to get incentives under this program and maximum 100 programs could be organized in a year under the policy. The competent institutions in this case would be GoI/GoUP supported/sponsored incubators, angel investors registered with SEBI/Banks or reputed academic institutions. Capping on total number of institutions benefitted could be relaxed by PMIC on recommendation of PIU.

4 Annual Incubator Rankings

Type of Benefit	Fiscal
Benefit Details	State level annual incubator rankings shall be introduced as per the KPI framework approved by the PMIC. An external agency will be engaged to perform the evaluation and assign rankings. Top3 performers in the ranking will be awarded amount of INR 3 Lakhs, 2 Lakhs and 1 Lakh per year to the winner, first runner up and the second runner up respectively.

5 Navratna Incubators

Type of Benefit	Fiscal
Benefit Details	All Navratna incubators shall get incentive of INR 10 Lakhs per annum for the expenses incurred to support host institutes/incubators for developing/scaling up the incubation capabilities. Navratna incubators shall be identified only after achieving the count of minimum 50 incubators recognised under Start-In-UP program of GoUP.

Type of Benefit	Non-Fiscal Incentives
Benefit Details	As per the notification issued by Government of India, startups shall be allowed to self-certify with 9 labour and environment laws (currently approved by GoI and will be revised time to time based on GoI notification) or as per any amendments afterwards. In case of the labour laws, no inspections will be conducted for a period of 3 to 5 years from the date of incorporation. Startups may be inspected on receipt of credible and verifiable complaint of violation, filed in writing and approved by at least one level senior to the inspecting officer. Permission shall be available for 3-shift operations with women working in the night for startups, subject to such units taking the prescribed precautions in respect of safety and security of employees in addition to providing the required welfare and health amenities as prescribed under applicable labour laws and obtaining the necessary approvals from the competent authority.

Type of Benefit

Non-Fiscal Incentives

Benefit Details

As per the notification issued by Government of India, startups shall be allowed to self-certify with 9 labour and environment laws (currently approved by GoI and will be revised time to time based on GoI notification) or as per any amendments afterwards. In case of the labour laws, no inspections will be conducted for a period of 3 to 5 years from the date of incorporation. Startups may be inspected on receipt of credible and verifiable complaint of violation, filed in writing and approved by at least one level senior to the inspecting officer.

Permission shall be available for 3-shift operations with women working in the night for startups, subject to such units taking the prescribed precautions in respect of safety and security of employees in addition to providing the required welfare and health amenities as prescribed under applicable labour laws and obtaining the necessary approvals from the competent authority.

Type of Benefit	Fiscal Incentives
Benefit Details	The Government of Uttar Pradesh shall provide financial support in the form of Grant-in-aid (covering capital and operational expenditure) upto INR 10 crores to CoE during span of 5 years from the date of establishment. It is expected that the CoE would become self-sustainable by the end of 5 years. The disbursal of financial support to CoE shall be contingent upon PMIC’s decision. Moreover, the release of funds/ incentives by the Government shall depend upon their performance.

Type of Benefit

Fiscal Incentives

Benefit Details

The Government of Uttar Pradesh shall provide financial support in the form of Grant-in-aid (covering capital and operational expenditure) upto INR 10 crores to CoE during span of 5 years from the date of establishment. It is expected that the CoE would become self-sustainable by the end of 5 years.

The disbursal of financial support to CoE shall be contingent upon PMIC’s decision. Moreover, the release of funds/ incentives by the Government shall depend upon their performance.

Uttar Pradesh

Nodal Agency

Office Address

Industry-wise distribution of Startups

Stage-wise distribution of Startups

Startups which have self-declared funding

Startups which have declared receipt of awards

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