UP Cabinet Approves New Startup Policy, Rs 1,000 Crore Fund Among 27 Major Decisions

The Uttar Pradesh cabinet has approved a new startup policy along with 26 other proposals, signalling a wider push on jobs, investment, welfare and urban infrastructure in the state. The decisions include higher financial support for startups, livestock insurance for farmers, cashless treatment for Home Guards, new health facilities and direct recruitment benefits for Olympic and Paralympic medallists.

The approvals were cleared at a cabinet meeting chaired by Chief Minister Yogi Adityanath at his official residence. Ministers Suresh Khanna, Sunil Sharma, Dharampal Singh and Anil Rajbhar briefed the media on the key decisions after the meeting. The government said the package is aimed at supporting entrepreneurs, farmers, workers, sportspersons and urban local bodies.

New UP startup policy to offer capital support

A major decision is the approval of the state's new startup policy. Under the policy, eligible startups will be able to receive capital assistance of up to Rs 20 lakh. In special circumstances, support may go up to Rs 50 lakh. The government has also provided for cloud reimbursement of Rs 2 lakh per year.

The cabinet has approved the creation of a Rs 1,000 crore startup fund. A dedicated Startup Mission will also be formed to promote industries and innovation in the state. Until now, related work was handled by UPLC. Under the new arrangement, a separate body will be created, with the chief secretary heading the governing body.

The decision is significant for Uttar Pradesh, where the government has been trying to attract investment beyond traditional industrial centres. Easier access to early-stage capital, cloud support and a separate institutional structure may help startups reduce initial costs. The policy will be watched closely by founders in smaller cities, where access to funding and advisory support remains limited.

The cabinet also cleared proposals linked to the electronics department. A new data policy has been approved, with emphasis on data security and storage within India. The move comes at a time when data localisation, cybersecurity and digital governance have become important policy issues for states seeking technology investment.

Livestock insurance to give relief to farmers

Farmers will get a new layer of protection through livestock insurance approved by the cabinet. The scheme is meant to cover losses caused by epidemic, disease and accidents. The government said insured farmers will receive compensation within one month in case of death of covered animals.

The valuation fixed for different animals will determine the insurance cover. Murrah buffaloes have been valued at Rs 75,000, while other buffaloes have been valued at Rs 50,000. Sahiwal cattle have been valued at Rs 65,000 and Gangagiri at Rs 60,000. Bulls have been valued at Rs 40,000 and calves at Rs 20,000.

The policy also covers smaller animals. Rabbits and similar small animals have been valued at Rs 6,500. The scheme will run with support from both the central and state governments. The central share will be 51 per cent, while the state share will be 34 per cent.

Livestock remains an important economic asset for rural households, especially small and marginal farmers. A sudden animal death can cause a direct income shock through loss of milk, breeding value or farm support. Time-bound compensation, if implemented effectively, could reduce distress for families dependent on dairy and animal husbandry income.

Cashless treatment for Home Guards and families

The cabinet has approved cashless medical treatment for Home Guards and their dependants. Under the decision, they will be able to receive free treatment of up to Rs 5 lakh. The move brings an important welfare benefit to a large force that supports policing, traffic management and emergency duties across the state.

Health infrastructure was another major focus of the meeting. The cabinet approved free land transfer for 100-bed hospitals in Gorakhpur and Moradabad. It also approved land for an Employees' State Insurance medical college in Varanasi. Half the seats in the proposed Varanasi medical college will be reserved for families of workers.

The decision may improve access to hospital care in these regions, particularly for insured workers and their families. ESI facilities are linked to formal-sector workers, and the addition of a medical college can also increase medical education capacity. The final impact will depend on project timelines, funding and execution on the ground.

Direct recruitment for Olympic and Paralympic medallists

The cabinet has also cleared direct recruitment for Olympic and Paralympic medallists. These appointments have been taken out of the purview of the Public Service Commission. The government said direct recruitment will be possible for nine posts of sports officer, three posts of district youth welfare officer and 23 posts of deputy sports officer.

The decision addresses a gap in recruitment rules for Group B and Group C posts. Until now, direct appointments to such posts were not available in the same manner. The new arrangement is intended to provide a clearer employment pathway for elite sportspersons who have won medals at the highest level.

Three new private universities have also been approved. Higher education minister Yogendra Upadhyay said Uttar Pradesh had only 27 universities till 2017. With the new approvals, the number of private universities in the state will rise to 56. The expansion reflects the state's push to widen higher education capacity through private participation.

Among other decisions, the cabinet approved renaming Jalalabad town in Shahjahanpur as Parshurampuri. Jalalabad is associated with Lord Parshuram's birthplace. The government also cleared the establishment of a horticulture college in Raebareli. For this, 20 hectares of land will be provided free of cost, and the state government will spend Rs 50 crore.

Urban financing was also on the agenda. Gorakhpur and Moradabad municipal corporations will issue municipal bonds. Gorakhpur will raise Rs 80 crore, while Moradabad will raise Rs 50 crore. Municipal bonds are used by urban bodies to mobilise funds for infrastructure projects, provided they meet financial and governance requirements.

The cabinet has also accepted the pay committee's recommendation to increase washing allowance and uniform-related payments by up to 50 per cent. Another approval fixes the maximum pension of the chairperson of the Public Service Commission at Rs 1,12,500. Together, the decisions cover a broad administrative and welfare agenda, with implementation now the key test.