Uttar Pradesh has unveiled enhanced startup and data centre incentives specifically targeting Purvanchal and Bundelkhand regions to attract investment and support its $1 trillion economy goal. According to reports from Business Standard, the recently announced Uttar Pradesh Startup Policy 2026 promises capital grants of up to ₹1.50 crore to incubators in Purvanchal and Bundelkhand, while such support in other regions including Western UP and Central UP, is capped at ₹1.25 crore.
The Uttar Pradesh Data Centre Policy 2026 provides additional incentives to units proposed in the Purvanchal and Bundelkhand regions. As reported by Business Standard, the upcoming data centres would be eligible for a land subsidy of 50 per cent on prevailing circle rates if private investors purchase or lease land from government authorities in the two relatively backward regions. However, in other parts of the state, the corresponding subsidy is only 25 per cent, according to the fresh policy document.
According to UP Minister for IT & Electronics Sunil Sharma, the new startup policy provides comprehensive financial and institutional support to the state's startup ecosystem. As reported by Business Standard, the sustenance allowance for startups has been increased from ₹17,500 per month for one year to ₹20,000 per month for two years. The prototype grant has been doubled from ₹5,00,000 to ₹10,00,000, while seed funding has been hiked from ₹7,50,000 to ₹15,00,000.
The startup policy promises reimbursement of up to ₹2 crore for patents and quality certifications, matching grants of up to ₹5 crore, and a 4 per cent interest subsidy on term loans of up to ₹2 crore to help enterprises scale up rapidly. As reported by Business Standard, the state has announced special incentives for deep-tech startups working in artificial intelligence, robotics, quantum technology, space technology, and other emerging technologies. Such startups will be eligible for prototype assistance of up to ₹20,00,000, seed funding of nearly ₹30,00,000, patience capital support of around ₹100 crore, and financial assistance of up to 40 per cent for research activities.
