Lucknow: Uttar Pradesh’s Higher Education Incentive Policy, 2024 offers financial incentives to sponsoring bodies establishing new private universities in the state, with enhanced benefits for institutions coming up in aspirational districts and for qualifying foreign and top-ranked Indian universities.
The policy, approved by the Uttar Pradesh Cabinet in October 2024, seeks to encourage private investment in higher education and promote the establishment of Multidisciplinary Education and Research Universities (MERUs) in line with the National Education Policy, 2020. The implementation government order was issued on October 8, 2024.
Who Can Benefit?
The financial incentives are primarily available to:
- The first eligible private university/MERU established in an unserved district of Uttar Pradesh.
- Qualifying foreign higher education institutions establishing campuses in the state.
- Indian universities ranked among the top 50 in the latest NIRF rankings and establishing eligible universities in Uttar Pradesh.
- Eligible institutions establishing the first qualifying MERU in an aspirational district.
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The policy does not automatically cover every new private university. Projects must satisfy the applicable state and regulatory requirements.
Capital Subsidy
For the first eligible MERU in an unserved district, the policy provides a capital subsidy linked to the level of investment:
- 15 per cent for investments up to ₹50 crore, subject to a maximum subsidy of ₹7 crore.
- 16 per cent for investments above ₹50 crore and up to ₹150 crore, with a maximum subsidy of ₹21 crore.
- 17 per cent for investments above ₹150 crore, capped at ₹35 crore.
The subsidy is to be released in annual instalments over five years after the prescribed approval or Letter of Promise.
Higher Incentives for Aspirational Districts
The first qualifying MERU established in an aspirational district can receive a 20 per cent capital subsidy, capped at ₹50 crore, along with 100 per cent stamp-duty exemption.
For eligible new private universities in unserved districts, stamp-duty exemption is linked to the cost of land forming part of the capital investment, with the policy providing exemptions of up to 50 per cent depending on the investment category.
Special Package for Foreign, Top-Ranked Indian Universities
The policy provides enhanced incentives for the first five qualifying foreign higher education institutions establishing campuses in Uttar Pradesh.
They can receive:
- 100 per cent stamp-duty exemption
- 20 per cent capital subsidy
- Capital subsidy capped at ₹100 crore
Similarly, Indian universities ranked in the top 50 of the NIRF rankings can receive a 20 per cent capital subsidy capped at ₹100 crore and full stamp-duty exemption, subject to the policy conditions.
Infrastructure Covered
The capital subsidy can cover specified infrastructure expenditure, including:
- Academic buildings and classrooms
- Libraries and laboratories
- Student hostels
- Internal roads and boundary walls
- Water and utility infrastructure
- Sewerage and drainage systems
- Power-distribution infrastructure
- Sewage and effluent-treatment facilities
Higher Education Department to Implement Policy
The Higher Education Department, Uttar Pradesh is the nodal department for implementation. Sponsoring bodies are required to meet the policy’s eligibility conditions and separately comply with the legal and regulatory requirements for establishing a university.
The incentive framework does not by itself confer university status or replace approvals required from the University Grants Commission and other relevant regulators.
The policy remains listed among Uttar Pradesh’s official investment policies, with Invest UP continuing to host the policy and its implementation government order.
