UP IT/ITeS Operating Expense Subsidy
Government of Uttar Pradesh · Central government
Uttar Pradesh reimburses 10% of operating expenses for new IT/ITeS units, up to ₹20 crore a year for 5 years.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹1,00,00,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 5 years
About this scheme
Under the IT and ITeS Policy of Uttar Pradesh 2022, the Operating Expense Subsidy for New IT/ITeS Units extends financial relief to newly established Information Technology and IT-enabled Services companies by reimbursing a portion of their running costs. Recurring outgoings such as lease rentals, internet bandwidth, data centre services and power charges fall within its scope.
To qualify, a unit must begin commercial operations within Uttar Pradesh and commit a minimum fixed capital investment of ₹2 Crores. Units functioning out of co-working spaces are also covered, a provision that recognises how workspaces for newer tech enterprises have changed.
The measure is intended to draw technology businesses to set up, expand and create jobs in the state, and to advance its digital transformation.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Uttar Pradesh
- IT/ITeS units that have commenced operations in Uttar Pradesh - Fixed Capital Investment of at least ₹2 Crores
How to apply
Frequently asked questions
Q: What is the Operating Expense Subsidy for New IT/ITeS Units?
Under the Uttar Pradesh IT and ITeS Policy 2022, eligible new IT/ITeS units setting up operations in the state can claim reimbursement of certain operating expenses.
Q: Who is eligible for this subsidy?
New IT/ITeS units setting up operations in Uttar Pradesh qualify if they make a minimum Fixed Capital Investment of ₹2 Crores.
Q: What types of expenses are covered under this scheme?
The subsidy meets 10% of operating costs, covering lease rentals up to ₹50 per sq ft per month, bandwidth charges, power bills, and data centre or cloud service fees from providers based in Uttar Pradesh.
Q: What is the maximum amount of subsidy an eligible unit can receive?
Each eligible unit can claim reimbursement of up to ₹20 Crores in a year.
Q: For how long is this subsidy provided?
The subsidy is available for five years, counted from the date the IT/ITeS unit begins commercial operations.
Q: Does this policy support units operating in co-working spaces?
Yes. Units operating from co-working spaces can also claim reimbursement of lease rentals.
Q: Are there any restrictions on service providers for data center/cloud costs?
Yes, the data centre or cloud service provider has to be located in Uttar Pradesh and hold a valid GSTIN issued under the Uttar Pradesh Goods and Services Tax Act.
Sectors
- Ai Saas Enterprise
- Ites
- It
- Uttar Pradesh
- Operating Expense Subsidy
- Reimbursement
Details last verified on 18 September 2026. Source: the issuer's published information.