Micro, small and medium enterprises in the Bundelkhand and Purvanchal region of the State will be eligible for capital subsidy of 25%, 20% and 15%, respectively
Micro, small and medium enterprises in the Madhyanchal and Paschimanchal region of the State will be eligible for capital subsidy of 20%, 15% and 10%, respectively
SC/ ST and women entrepreneurs will be eligible for 2% additional, capital subsidy
Capital subsidy will be provided in 2 equal installments. First installment is payable once the construction of related buildings is completed. Second installment is payable once at least 50% of commercial production has begun.
Interest Subsidy
Only micro units will be eligible for interest subsidy
50% interest subsidy, payable annually for five years, subject to ceiling of Rs 25 Lakh/ unit
60% interest subsidy for SC/ ST and women entrepreneurs, payable annually for five years, subject to ceiling of Rs 25 Lakh/ unit
A Capital Subsidy of 25% of the investment made on purchase of Plant and Machinery will be reimbursed to the textiles and garmenting units, which generates minimum employment of 50.
In addition to the above, reimbursement of additional capital subsidy at the rate of 10 percent will be provided to the units set up in Poorvanchal and Bundelkhand region of the state, as per the table given below.
The maximum limit of the Capital Subsidy is INR 100 Crore per unit.
In level First : Investment on Plant & Machinery is <=10 Crore and Minimum Employment Generation is <50 then Rate of Capital Subsidy is 15% and Additional Capital Subsidy for units set up in Poorvanchal and Bundelkhand is O% ( 15% and Upper Cap is 1 Crore )
In level Second : Investment on Plant & Machinery is <=10 Crore and Minimum Employment Generation is 50 then Rate of Capital Subsidy is 25% and Additional Capital Subsidy for units set up in Poorvanchal and Bundelkhand is 10% ( 35% and Upper Cap is 2 Crore )
In level Third : Investment on Plant & Machinery is >10 Crore but <=50 Crore and Minimum Employment Generation is 200 Rate of Capital Subsidy is 25% and Additional Capital Subsidy for units set up in Poorvanchal and Bundelkhand is 10% ( 35% and Upper Cap is 10 Crore )
In level Fourth : Investment on Plant & Machinery is >50 Crore but <=100 Crore and Minimum Employment Generation is 300 Rate of Capital Subsidy is 25% and Additional Capital Subsidy for units set up in Poorvanchal and Bundelkhand is 10% ( 35% and Upper Cap is 20 Crore )
In level Fifth : Investment on Plant & Machinery is >100 Crore but <=200 Crore and Minimum Employment Generation is 500 Rate of Capital Subsidy is 25% and Additional Capital Subsidy for units set up in Poorvanchal and Bundelkhand is 10% ( 35% and Upper Cap is 40 Crore )
In level Sixth : Investment on Plant & Machinery is >200 Crore and Minimum Employment Generation is 1000 Rate of Capital Subsidy is 25% and Additional Capital Subsidy for units set up in Poorvanchal and Bundelkhand is 10% (35% and Upper Cap is Capital Subsidy 100 Crore )
Subsidy of 25% of the project cost will be reimbursed, for construction of staff-quarter, worker’s hostel/dormitory, subject to maximum of INR 5 Crores per unit.
Interest Subsidy
Interest Subsidy on Plant and Machinery provided to the textile and garmenting units on purchase of Plant & Machinery eligible under the TUFS/ATUFS or amended scheme of the Ministry of Textiles, Government of India
60% amount of the annual interest paid by the unit on the loan taken from commercial banks/financial institutions for plant and machinery will be reimbursed for a maximum period of 07 years
The maximum limit of this interest subsidy for the textile and garmenting units in the state (except Gautam Budh Nagar district) will be INR 1.5 Crore per annum per unit. The upper limit of this subsidy for units in Gautam Budh Nagar district will be INR 75 Lakhs per annum per Unit.
For beneficiaries belonging to Special categories such as SC/ST/ Women/ Minorities/ Ex-Servicemen/ Transgenders/ Aspirational districts/NER, the margin money subsidy is 35% in rural areas and 25% in urban areas
Capital Subsidy
Manufacturing Sector :
(a) For the manufacturing sector in industrial units, benefits are limited to projects with a cost of up to ₹50 lakhs.
(b) The margin money subsidy rate is 15% for urban areas and 25% for rural areas under the general category.
(c) For SC/ST/OBC beneficiaries, the subsidy is 25% in urban areas and 35% in rural areas.
(d) Beneficiaries belonging to special categories (SC/ST, Women, Minorities, Ex-Servicemen, Transgenders, Aspirational Districts, and NER) are eligible for a margin money subsidy of 35% in rural areas and 25% in urban areas.
Service Sector:
(a) For the service sector in industrial units, benefits are limited to projects with a cost of up to ₹20 lakhs.
(b) The margin money subsidy rate is 15% for urban areas and 25% for rural areas under the general category.
(c) For SC/ST/OBC beneficiaries, the subsidy is 25% in urban areas and 35% in rural areas.
(d) Beneficiaries belonging to special categories (SC/ST, Women, Minorities, Ex-Servicemen, Transgenders, Aspirational Districts, and NER) are eligible for a margin money subsidy of 35% in rural areas and 25% in urban areas.
2nd Loan for upgradation of existing PMEGP/MUDRA units
The maximum cost of the project/unit admissible for Margin Money subsidy under Manufacturing sector for upgradation is Rs. 1.00 crore. The maximum cost of the project/unit admissible for Margin Money subsidy under Business/Service sector for upgradation is Rs. 25 lakh.
Special Credit Linked Capital Subsidy Scheme: 25% capital subsidy to SC-ST owned MSEs for procurement of Plant & Machinery / Equipment through institutional finance (i.e., subsidy cap of Rs.25 Lacs) without any sector-specific restrictions.
Interest Subsidy
Reimbursement of Bank Loan Processing Fee: 80% or Rs. 1,00,000/-, whichever is less, on Bank loan processing charges paid by SC-ST MSEs.
Reimbursement of Bank charges on Performance Bank Guarantee: 80% or Rs. 1,00,000/-, whichever is less, on Performance Bank guarantee charges paid by SC-ST MSEs.
Reimbursement of Testing Fee: 80% or Rs 1,00,000/- on testing charges, whichever is less for availing testing services from Government laboratories or NABL /BIS accredited laboratories & license or certification fee from BIS, in a financial year.
Reimbursement of the annual membership fee of Export Promotion Council: 80% of the annual Membership fee of various Export Promotion Councils with a ceiling of Rs. 20,000/-.
Reimbursement of annual membership/subscription fee of Government promoted e-commerce portals: 80% or a maximum of Rs. 25,000/- whichever is less, on annual membership fee of Government promoted e-commerce portals such as GeM, e-khadi, TRIFED, Tribes India, MSME Mart, etc. to SC-ST MSEs.
Single Point Registration Scheme (SPRS): 100% subsidy for registration under Single Point Registration Scheme of NSIC and the applicant unit is required to pay token amount of Rs.100 plus GST only.
ASPIRE ( A scheme for Promotion of Innovation , Rural Industries and Entrepreneurship)
Capital Subsidy
Maximum of INR 1 cr. to Government agencies & INR 75 lakh to Private agencies for procuring plant and machinery.
Maximum of INR 1 cr. to Government and Private agencies as operational expenditure support towards manpower cost, running incubation and skill development programmes.
A capital subsidy amounting to 35% of incurred expenditure on plant, machinery and technical civil work in respect of setting up of the food processing units in the State will be provided, subject to the maximum limit of Rs. 5 crore in all the districts of the State.
A capital subsidy amounting to 25% of incurred expenditure on plant, machinery and technical civil work in respect expansion and modernization / up-gradation of the food processing units in the State will be provided, subject to the maximum limit of Rs. 1 crore in all the districts of the State.
Interest Subsidy
Interest Subsidy for purchase of Reefer Vehicles and Mobile Pre-Cooling vans: An assistance in the form of interest subsidy for all the interest accrued on the loan taken for purchase of Reefer Vehicle and Mobile Pre-Cooling van will be reimbursed for a period of five years, subject to maximum limit of Rs. 50 lacs.
100% interest subsidy on loan taken for the project for micro and small food industries will be reimbursed for a period of five years. For other units the interest subvention of 7% for a period of five years will be provided. Both are subject to maximum limit of Rs. 50 lacs.
For (Storage facilities) Capital Subsidy to Warehouses/ Silos/ Cold Chain Facility shall be provided at the rate of 15% of Eligible Capital Investment subject to-maximum INR 5 crores for setting up such facilities anywhere in the State and maximum INR 10 Crores for setting up such facilities in the designated Logistics Zones.
For (Dry Post) Capital Subsidy at the rate of 25% of Eligible Capital Investment shall be provided to ICD/ CFS/ AFS subject to: maximum INR 25 Crores for setting up the project anywhere in the State and Maximum INR 50 Crores for setting up the projects in the designated Logistics Zones
For (Logistics Park) Capital Subsidy at the rate of 25% of Eligible Capital Investment shall be provided to the developers of Logistics Park subject to : maximum INR 25 Crores for setting up the project anywhere in the State and maximum INR 50 Crores for setting up the projects in the designated Logistics Zones.
For (Inland Waterway facility -> Berthing Terminal) The developers of such berthing terminals will be provided Capital Subsidy at the rate of 20% on the eligible capital investment as defined under this policy for the development of such terminals, subject to maximum INR 15 Crores. This subsidy shall be disbursed in 3 annuals instalments post completion of the project
For (Inland Waterway facility -> Inland Vessel) Purchase Subsidy for purchasing Inland Vessels as defined above for operations in the State along National Waterway-1 will be provided through the manufacturers of such vessels. Such subsidy will be provided at the rate 25% of the actual purchase cost, subject to maximum INR 5 Crores per vessel
For (Cargo Terminals) The developers of such terminals will be provided Capital Subsidy at the rate of 20% on the Eligible Capital Investment as defined under this policy for the development of such terminals, subject to maximum INR 15 Crores. This subsidy shall be disbursed in 3 annual instalments post completion of the project
For Storage facilities, Dry Ports, Logistics Parks and Truckers Park 75% of the development Charges shall be exempted
UP Dairy Development and Milk Products Promotion Policy-2022
Capital Subsidy
Capital Investment Subsidy of 10% of the cost of plant machinery, technical civil works and spare parts, to the extent of maximum Rs. 5.00 crore shall be provided for the establishment of milk processing and milk products manufacturing units or expansion (in case of at least 25% increase in the existing capacity) of milk processing and milk products manufacturing units in all the districts of the state.
Interest Subsidy
For the establishment of new milk processing and milk products manufacturing dairy unit, a maximum of Rs. 10.00 crore support will be admissible, with interest payable on loan taken for plant machinery, technical civil works and spare parts at the rate of 5% of the rate or less, maximum for a period of 5 years.
For new cattle feed and cattle nutritional products manufacturing unit to be set up, reimbursement of Rs. 7.50 crore will be admissible with interest payable on loans taken for plant machinery, technical civil works and spare parts at the rate 5% or less, maximum for a period of 5 years
For technological upgradation in existing dairy plant like SCADA System, New Generation Technology, 5% or less rate of interest payable on the loan taken for the installation of machinery and equipment etc., subject to a maximum of Rs 2.50 crore for 5 years
For Traceability and quality control equipment in the field outside of the dairy plant, an amount of Rs. 1.00 crore will be admissible, with interest payable on loan taken for automatic milk collection unit (other than milk chain) at the rate of 5% or less, maximum for 5 years.
For Refrigerated Van / Insulated Van / Road Milk Tanker, Bulk Milk Cooler, Ice Cream Trolley, a maximum of Rs. 1.00 crore will be admissible with the rate of interest paid on the loan taken for the establishment and purchase of cold chain system etc. as 5% or less, for a maximum of 5 years.
For plant and machinery in case of minimum 25% increase in existing capacity, reimbursement of maximum Rs. 2.50 crore will be allowed at the rate of 5% or less interest payable on the loan taken for the purchase of a maximum of 5 years.
For Plant and machinery in case of minimum 25% increase in existing capacity, Reimbursement up to a maximum of Rs. 2.00 crore will be admissible at the rate of 5% or less interest payable on the loan for 5 years.
For the establishment of field plant machinery of units manufacturing ice cream etc. and value-added milk products coming under the micro and small enterprises sector like Cheese, ice-cream reimbursement of maximum Rs. 2.00 crore will be allowed at the rate of 5% or less interest payable on the loan in 5 years.
UP Electric Vehicle Manufacturing and Mobility Policy-2022
Capital Subsidy
To promote faster transition/ adoption of EV : Registration Fees & Road Tax exemption to buyers -
At the rate of 100% on any EV purchased & registered in UP over a period of 3 years from policy notification
At the rate of 100% on any EV manufactured, purchased & registered in UP in the 4th & 5th year of policy period.
To Promote faster transition/ adoption of EV : Purchase Subsidy as early bird incentives shall be provided to buyers (one time) through dealers over a period of 1 year from date of notification specifically done for this subsidy scheme at following rates in defined segments-
Two-Wheeler EV: @15% of ex-factory cost upto Rs 5000 per vehicle subject to maximum budget outlay of Rs 100 Cr to maximum of 2 lac EVs
Three-Wheeler EV: @15% of ex-factory cost upto Rs 12000 per vehicle subject to maximum budget outlay of Rs 60 Cr to maximum of 50000 EVs
Four-Wheeler EV: @15% of ex-factory cost upto Rs 1 lakh per vehicle subject to maximum budget outlay of Rs 250 Cr to maximum of 25000 EVs
E-Buses (Non-Govt, i.e. School buses, ambulances, etc.): @15% of ex-factory cost upto Rs 20 lakh per vehicle subject to maximum budget outlay of Rs 80 Cr to maximum of 400 E-Buses
E-Goods Carriers: @10% of ex-factory cost upto Rs 1,00,000 per vehicle subject to maximum budget outlay of Rs 10 Cr to maximum of 1000 E-Goods Carriers
To Promote manufacturing : Capital subsidy shall be provided on Base Capital Subsidy multiplied by Gross Capacity Utilization Multiple (GCM)
MSME Projects as defined in the policy shall be provided capital subsidy at the rate of 10% of eligible fixed capital investment subject to max INR 5 Cr per project to be provided over a period of 2 years in equal annual instalments
To Promote creation of Charging Infrastructure : The Policy shall strive to attract investments for setting up at least 20 charging stations and 5 swapping stations per district during the policy period. Capital Subsidy to Service providers
Charging Stations shall be provided one time capital subsidy on eligible fixed capital investment for service providers at the rate of 20% subject to maximum INR 10 lakh per unit to 1st 2000 Charging Stations in the State
Swapping Stations shall be provided one time capital subsidy on eligible fixed capital investment for service providers at the rate of 20% upto max INR 5 lakh per unit to 1st 1000 Swap Stations in the State
To Ecosystem Support: The State Government shall promote establishment of Centres of Excellence (CoEs) in the State. Government organizations / PSUs/ Pvt companies shall be encouraged to set up Centres of Excellence (CoE) in the field of EV/ Battery / Charging to facilitate R&D, testing, technology acquisition and other facilities to support the EV ecosystem, including non-fossil fuel based mobility solutions. Such Centres shall focus on the design & use of EVs, improving the usage and efficiency of EVs and charging equipment. Five such CoEs shall be incentivized with a 50% grant of project cost up to INR 10 crores each. This grant shall be released over a period of 5years. On the recommendation of Invest UP or Transport Department or any other State Department/ Agency, the sanction and disbursal of the incentives to such CoEs shall be reviewed and recommended by the High level Empowered EV Committee (HLEEVC) on the approval of Hon’ble Chief Minister.
For establishment of Commercial Layer Farm: Reimbursement of 7% interest will be allowed to the beneficiary for 5 years on the loan received by the beneficiary from the bank on the above units. The financing of the projects will be in the ratio of 30% margin money and 70% bank loan.
Establishment of broiler parent farm: Reimbursement of 7% interest will be allowed to the beneficiary for 5 years on the loan received by the beneficiary from the bank on the above unit. The financing of the projects will be in the ratio of 30% margin money and interest on maximum 70% bank loan.
50% of the capital subsidy approved by Govt. of India. This benefit will be disbursed in accordance with the benefits provided by the government of India on a pari-passu mode.
Center of Excellence : 50% of the total CoE project cost (subject to a maximum of ₹10 Crore to establish CoEs in collaboration with reputed academic institutions and/ or industry associations/ industry or any other Govt./ Private entity.
Green Investment and Financing for Transformation (GIFT) Scheme
Interest Subsidy
Interest Subvention Scheme for MSMEs:
Subsidized Loans: MSMEs can avail loans with a 2% interest subvention per annum, for loan amounts ranging from ₹10 lakhs to ₹2 crores.
Duration: The subvention is available for a maximum period of 5 years.
Benefit: Significantly reduces the cost of borrowing, making it more affordable for MSMEs to invest in green and sustainable technologies.
Risk Sharing Facility (RSF) :
Credit Guarantee: Offers partial credit guarantee coverage for loans up to ₹2 crores, encouraging lending to MSMEs.
Risk Reduction: Covers a substantial portion of the loan, reducing risk for financial institutions and promoting easier access to credit.
Special Concessions: Reduced guarantee fees for women, SC/ST, persons with disabilities, Agniveers, and enterprises located in priority regions.
SWIFT (SIDBI Assistance for Working Capital using Integrated Finance Tool
Capital Subsidy
Substantial Overdraft Limit:
MSMEs can avail an overdraft facility of up to ₹3 crores, offering significant liquidity support for meeting operational and short-term cash flow needs.
Fast-Track Sanction Through Digital Journey:
SIDBI provides an in-principle offer letter upon successful completion of the digital application process, making it hassle-free, paperless, and time-efficient for eligible units to get sanctioned credit.
Scheme for Promotion and Investment in Circular Economy (MSE SPICE)
Capital Subsidy
Financial Support: Subsidies to reduce the cost of adopting CE practices:
(a) Capital Subsidy (INR – 450cr):
• Brownfield Projects: Upgrading existing CE projects with a maximum project cost of Rs. 50 lakhs. A 25% subsidy on plant and machinery costs, up to Rs. 12.5 lakhs.
(b) Awareness Generation and Demand Creation (INR – 15cr):
• Workshops and programs to educate MSEs and stakeholders about CE.
(c) IEC Component (INR 7.50 cr):
• Training and capacity building for financial institutions.
• Development of ICT platforms for green financing.
Increased Efficiency: Improved resource utilization and waste management.
Market Expansion: Access to new markets through compliance with CE standards.
Enhanced Competitiveness: Adoption of advanced technologies and processes.
Environmental Impact: Contribution to sustainability goals and reduced carbon footprint.
Under this scheme, any entrepreneur can set up a unit up to Rs 50 lakh in the manufacturing sector and up to Rs 20 lakh in the service sector.
For the establishment of these units, 15% to 25% of the entire project cost is provided to the beneficiaries in urban areas and 25% to 35% in rural areas as grant by the Government of India
