UP Sericulture Capital Subsidy Scheme
By Government of Uttar Pradesh
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Quick Answer
Capital subsidy of 15-20% on margin money for sericulture units in Uttar Pradesh with bank loans and capital investment up to ₹1 crore.
- Funding amount
- Varies
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh
- Application deadline
- Rolling
- Location
- Uttar Pradesh
About this subsidy
Sericulture units in Uttar Pradesh that take a loan from a bank or financial institution get a capital subsidy of 15% on margin money, rising to 20% for units promoted by SC/ST entrepreneurs. It is an incentive under the UP Textile and Garmenting Policy 2022. It covers chaaki worm rearing, koya production, reeling and spinning, for new units and for expansion of existing ones. Maximum capital investment is ₹1 crore. The margin money amount is based on the bank's project cost appraisal.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Government of Uttar Pradesh supports startups and businesses through a set of state policies, each run by a different department. This page covers the startup policy, which gives grants, reimbursements and free incubation to early startups, and the MSME, IT, food processing,…
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What You Get
The program offers a capital subsidy of 15% on margin money for units engaged in sericulture. This subsidy can go up to 20% for units promoted by SC/ST entrepreneurs. The margin money amount is determined based on the project cost appraisal by the bank, which must be a loan from banks/financial institutions for units with a maximum capital investment of ₹1 crore. This financial support helps reduce the initial capital burden for new and expanding sericulture businesses, encouraging investment and growth in the sector.
- Disbursement
- Lump Sum
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for the capital subsidy will typically undergo a thorough review process by the implementing authority, adhering to the guidelines set forth in the UP Textile and Garmenting Policy 2022. This process involves verifying the eligibility of the sericulture unit, validating the details of the bank loan, and assessing the project cost appraisal. Specific criteria for determining eligibility, the calculation of margin money for the subsidy, and compliance with the policy objectives will be strictly followed. The subsidy amount will be disbursed upon successful verification and approval of the application.
Application Process
- 1
Review Guidelines
Review the UP Textile and Garmenting Policy 2022 for detailed eligibility and application procedures.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the purpose of this scheme?
This scheme aims to provide financial assistance to sericulture units in Uttar Pradesh by offering a capital subsidy on their margin money for capital investments, promoting growth in the textile and garmenting sector.
What is the amount of subsidy available?
Units are eligible for a capital subsidy of 15% on their margin money. For SC/ST entrepreneurs, this subsidy is 20%.
What is the maximum capital investment allowed for a unit to be eligible?
The scheme is applicable for sericulture units with a maximum capital investment of ₹1 crore.
Is it mandatory to take a loan from banks or financial institutions?
Yes, units must take a loan from banks or financial institutions for their capital investment to be eligible for this capital subsidy.
How is the margin money calculated for the subsidy?
The margin money on which the subsidy is calculated will be based on the project cost appraisal conducted by the bank or financial institution.
Which types of sericulture activities are covered under this subsidy?
The subsidy covers units involved in rearing of chaaki worm, koya production, reeling, and spinning within the sericulture sector.
Sources
Data on this page is compiled from official program and provider references.
