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UP Cabinet Approves Startup Policy 2026 & Data Centre Policy 2026 with Enhanced Incentives, Targets 2GW Capacity

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
06 Jul 2026
~2 min
Source: Indian Express
Key Data:Rs 20,000/month sustenance allowance for 2 yearsPrototype grant Rs 10 lakh (doubled from Rs 5 lakh)Seed funding Rs 15 lakh (up to Rs 50 lakh)Patent reimbursement up to Rs 2 croreMatching grants up to Rs 5 crore4% interest subsidy on term loans up to Rs 2 crore
Bodies:Uttar Pradesh CabinetDepartment of IT & Electronics, Uttar PradeshUttar Pradesh Startup Mission Directorate
Practice MCQs from today's news ▸
What This Article Covers

1.UP Cabinet approved Startup Policy 2026 and Data Centre Policy 2026 under CM Yogi Adityanath.

2.Financial incentives for startups increased: sustenance allowance from Rs 17,500/month to Rs 20,000/month for 2 years; prototype grants doubled from Rs 5 lakh to Rs 10 lakh; seed funding from Rs 7.5 lakh to Rs 15 lakh.

3.Data centre policy targets 2 GW additional capacity and Rs 2 lakh crore investment; special focus on GPU infrastructure, green operations, and Tier 3/4 data centres with extra incentives for Bundelkhand and Purvanchal.

The Big Picture
Prelims · HighMains · Medium

The Uttar Pradesh Cabinet has approved two new policies – Startup Policy 2026 and Data Centre Policy 2026 – with significantly enhanced financial incentives to promote innovation, employment, and investment. Key increases include sustenance allowance doubled to Rs 20,000/month for 2 years, prototype grants raised to Rs 10 lakh, and seed funding to Rs 15 lakh (up to Rs 50 lakh in special cases). The data centre policy aims to add 2 GW capacity and attract over Rs 2 lakh crore investment, positioning UP as a green, AI-ready hub.

Exam Lens

Quick Exam Facts From News

Sustenance Allowance (Startup Policy)Rs 20,000/month for 2 years (previously Rs 17,500/month for 1 year)
Prototype Grant (General Startup)Rs 10 lakh (doubled from Rs 5 lakh)
Seed Funding (General Startup)Rs 15 lakh; up to Rs 50 lakh in special circumstances
Deep-Tech Startup Seed FundingRs 30 lakh (with prototype assistance Rs 20 lakh, patience capital up to Rs 100 crore)
Data Centre Capacity Target2 Gigawatts additional capacity
Investment Target (Data Centres)Over Rs 2 lakh crore
Number of New Centres of Excellence (CoEs)20
Financial Assistance per CoERs 12 crore (increased from Rs 10 crore)
Incubator Capital Grant (General)Rs 1.25 crore (up from Rs 1 crore)
Incubator Capital Grant (Purvanchal/Bundelkhand)Up to Rs 1.50 crore
Operational Expenditure Grant for IncubatorsRs 40 lakh per year (up from Rs 30 lakh)
UP Registered StartupsAround 17,000
Previous Data Centre Policy TimelinePolicy 2021 amended Nov 7, 2022; under that, 7 projects operational with Rs 21,343 crore investment

1-Minute Revision

  • ›Sustenance Allowance (Startup Policy): Rs 20,000/month for 2 years (previously Rs 17,500/month for 1 year)
  • ›Prototype Grant (General Startup): Rs 10 lakh (doubled from Rs 5 lakh)
  • ›Target this Data: Sustenance allowance increased from Rs 17,500/month to Rs 20,000/month for 2 years.
  • ›Target this Nodal Body: Uttar Pradesh Startup Mission Directorate under Department of IT & Electronics.
  • ›Target this Legal Point: Uttar Pradesh Startup Mission constituted under Societies Registration Act.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Under the new UP Startup Policy 2026, which department has been designated as the nodal agency for the Uttar Pradesh Startup Mission?

Q2Statement-basedHard

Consider the following statements regarding the UP Data Centre Policy 2026:

1. The policy aims to develop an additional capacity of 2 Gigawatts and attract investment of more than Rs 2 lakh crore.

2. The earlier UP Data Centre Policy expired on January 27, 2025.

3. The policy offers extra incentives for data centres located in Bundelkhand and Purvanchal regions.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the UP Startup Policy 2026, what is the enhanced seed funding amount for general startups (excluding deep-tech)?

Q4Application/ImpactMedium

What is the primary objective of the Uttar Pradesh Data Centre Policy 2026 as stated in the news?

All 20 MCQs ▸
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