LUCKNOW The state cabinet on Monday approved the proposal to set up a dedicated Startup Mission Directorate to strengthen the state’s startup ecosystem, improve coordination among incubators and centres of excellence and achieve the objective of making UP a trillion-dollar economy by 2030.
The cabinet also approved the UP Startup Policy-2026, replacing the previous one and UP Data Centre Policy-2026 to make a world class, green, AI-ready competitive hub.
Startup-related activities are currently handled by the UP Electronics Corporation, but the new mission would function as a separate entity headed by a CEO with its own officers and staff. It would work as a nodal agency to implement the start-up and innovation projects in the state.
Chief minister Yogi Adityanath presided over the meeting of the state cabinet that also approved a proposal to implement the recommendations of Pay Committee (2016) providing for paying/increasing uniform and uniform washing allowance to uniformed personnel of different departments. The decision would incur an additional cost of ₹20 crore per annum to the state exchequer.
Under the new start-up policy, various provisions to provide necessary cooperation, financial and institutional incentives have been made to scale up startups from the primary stage. The incubation period for the startups has been increased from one year to two years. The cost of living allowance has been increased from ₹17,500 per month (for one year) to ₹20,000 per month for two years. The maximum limit for prototype funding has been increased from ₹5 lakh to ₹10 lakh while the maximum limit for seed funding goes up from ₹7.5 lakh to ₹15 lakh. The seed funding may go up to ₹50 lakh in special circumstances.
An additional incentive of 50% will be given to startups set up by women/economically weaker sections/transgenders with a minimum of 51% share. The startups in Bundelkhand or Poorvanchal region or the ones working in agri-tech, circular economy, rural impact, waste management, sustainability, new energy and climate change will also be given additional benefits. An assistance of ₹2 crore would be given for getting quality certification and patent filing.
Startups getting financial assistance from national or international institutions or national missions would get a matching grant of 50% subject to a maximum of ₹5 crore. A provision of term loan up to ₹2 crore, 4% subsidy on interest and reimbursement of EPF and ESI has also been made.
Deep-tech startups would have prototype assistance up to ₹20 lakh, seed funding up to 30 lakh and patient capital up to ₹100 crore and up to 40% matching grant for research and development.
Under the new data centre policy, incentives would include relaxation regarding land, capital, interest subsidy, rebate in stamp duty and electricity fee along with other incentives for all the three categories of data centre parks (40 mw plus capacity), data centre units (2mw plus and less than 40 mw) and age data centre. A customised special package may be given for 500 mw plus data centre projects.
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