One of my friends is a part of the institute and can put it in a better way. You might have been confused between the scholarship provided by the institute and the state scholarship.
He however has less information about states other than Uttar Pradesh, and for learning more about it, you should visit the main webpage of the institute and have the latest information.
There is a provision of an online scholarship portal for residents of Uttar Pradesh who are at present pursuing their courses outside the state. You can register on the portal typically by filing certain crucial details, your family income certificate and other essential documents as and when asked, in the IIIT Una administration, along with the printed form.
You can also connect with the seniors currently studying there, to get a proper insight into it.