UP Capital Subsidy (Textile Policy)
By Government of Uttar Pradesh
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Quick Answer
A capital subsidy program offering reimbursement of 25% of investment in plant and machinery, up to ₹100 crore, for eligible textile and garmenting units in Uttar Pradesh, with additional benefits for units in Poorvanchal and Bundelkhand.
- Funding amount
- Up to ₹100Cr
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh
- Application deadline
- Rolling
- Location
- Uttar Pradesh
About this subsidy
The Uttar Pradesh Capital Subsidy program, an integral part of the UP Textile and Garmenting Policy 2022, is designed to stimulate investment and foster employment within the state's vital textile and garmenting sectors. This initiative provides significant financial relief by reimbursing a portion of the capital expenditure incurred by units on plant and machinery. By offering a substantial capital subsidy, the policy aims to reduce the financial burden on manufacturers, encourage modernization, and enhance the competitive edge of the state's textile industry. The program specifically incentivizes development in economically backward regions like Poorvanchal and Bundelkhand by providing an additional subsidy, thereby promoting balanced regional growth and creating sustainable livelihoods. This strategic support is crucial for driving industrial growth, attracting new investments, and reinforcing Uttar Pradesh's position as a key hub for textile manufacturing in India. It targets established and growing businesses that are committed to creating substantial employment opportunities within the state, aligning with the broader economic development goals of the Government of Uttar Pradesh.
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,…
Learn moreBenefits & Funding
- Amount
- Up to ₹100Cr
What You Get
This program offers a capital subsidy of 25% on the investment made in the purchase of Plant and Machinery for eligible textile and garmenting units. Units established in the Poorvanchal and Bundelkhand regions of Uttar Pradesh are entitled to an additional capital subsidy of 10%. The maximum limit for the capital subsidy is INR 100 Crore per unit. This reimbursement mechanism aims to significantly offset the initial capital expenditure, fostering growth, technological upgradation, and increased employment within the textile sector of the state.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for the capital subsidy are reviewed by a committee appointed under the UP Textile and Garmenting Policy 2022. Evaluation will be based on compliance with all eligibility criteria, verification of the investment made in plant and machinery, and confirmation of the minimum employment generation of 50. Units located in the Poorvanchal and Bundelkhand regions will receive preference for additional subsidy. Shortlisted units will proceed to further verification stages, which may include site visits or submission of additional financial documentation.
Application Process
- 1
Review Policy
Thoroughly review the UP Textile and Garmenting Policy 2022 for detailed guidelines and criteria.
You - 2
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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 primary benefit of the UP Capital Subsidy (Textile Policy) program?
The primary benefit is a capital subsidy of 25% on the investment made in Plant and Machinery, with a maximum limit of INR 100 Crore per unit. An additional 10% subsidy is available for units in Poorvanchal and Bundelkhand regions.
Which types of units are eligible for this subsidy?
Textile and garmenting units operating within Uttar Pradesh are eligible. These units must generate a minimum employment of 50 individuals.
Are there any specific regional benefits under this policy?
Yes, units established in the Poorvanchal and Bundelkhand regions of Uttar Pradesh are eligible for an additional 10% capital subsidy on top of the standard 25%.
Is there a maximum amount for the capital subsidy?
Yes, the maximum capital subsidy per unit under this policy is INR 100 Crore.
What is the application process for claiming this capital subsidy?
Applicants should refer to the detailed guidelines provided in the UP Textile and Garmenting Policy 2022. Generally, the process involves submitting a comprehensive application with investment proofs and employment generation details to the designated state authority for review and approval.
Is there a minimum employment generation requirement for eligibility?
Yes, eligible textile and garmenting units must generate a minimum employment of 50 individuals.
Sources
Data on this page is compiled from official program and provider references.
