UP IT/ITeS Capital Subsidy Scheme 2022

## Capital Subsidy for New IT/ITeS Units

Uttar Pradesh's IT and ITeS Policy 2022 includes a capital subsidy for new IT/ITeS units. The incentive is meant to draw fresh investment into the information technology and IT-enabled services sectors and to prompt existing firms to widen their operations in the state. Financial support is directed at fixed capital investment, with the broader aim of building a more competitive IT/ITeS ecosystem that generates employment and drives economic development.

To qualify, an IT/ITeS unit must commit a minimum capital investment of ₹5 Crores. The subsidy equals 10% of the Fixed Capital Investment (FCI), subject to a ceiling of ₹50 Crores. This range allows both mid-sized and large projects to claim the benefit. Disbursement is structured for long-term operational stability: the total subsidy is paid in five annual installments, with each installment capped at ₹10 Crores, so units receive steady support as they stabilise and expand after commencing commercial operations.

The Government of Uttar Pradesh positions the state as a destination for IT/ITeS investment, drawing on its skilled workforce, infrastructure improvements and policy support. The capital subsidy is intended to ease the financial load on companies undertaking large capital expenditure and to speed up their setup and operational efficiency. The policy also seeks to encourage innovation, strengthen digital infrastructure and bring technology companies to the state, in line with its goal of becoming a trillion-dollar economy.

- Consult the Uttar Pradesh IT and ITeS Policy 2022 document in full for the prescribed application forms and guidelines. - Confirm that your IT/ITeS unit satisfies the minimum capital investment threshold of ₹5 Crores. - Assemble the complete set of documents covering your fixed capital investment, project plan, and incorporation particulars. - File the application via the state government portal or office named in the policy document. - Track the application's progress and furnish any supplementary information or clarification the authorities seek. - Once approval is granted, liaise with the disbursing authority regarding the annual installments scheduled after commercial operations begin.

A dedicated committee set up by the Department of IT & Electronics, Government of Uttar Pradesh, generally examines applications for the Capital Subsidy. Eligibility is verified during this evaluation, covering the type of IT/ITeS unit, the amount of Fixed Capital Investment (FCI), and the business plan submitted. The committee also checks full compliance with the terms and conditions laid down in the IT and ITeS Policy of Uttar Pradesh 2022.

Projects that show clear potential to contribute economically and generate employment within the state are given priority. Approval is ultimately granted on the basis of the committee's assessment and conformity with the policy guidelines, so that selection remains transparent and merit-based.