UP Electricity Duty Exemption for New Textile & Garment Units
By Government of Uttar Pradesh
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Quick Answer
New textile and garmenting units in Uttar Pradesh pay no electricity duty for 10 years.
- Funding amount
- Varies
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh
- Application deadline
- Rolling
- Location
- Uttar Pradesh
About this subsidy
The Electricity Duty Exemption scheme, introduced under the Uttar Pradesh Textile and Garmenting Policy 2022, is designed to significantly boost the growth and competitiveness of the textile and garmenting sector within the state. This initiative aims to attract new investments, promote industrialization, and create employment opportunities by offering a crucial financial incentive to eligible manufacturing units. By alleviating a significant operational cost component, the policy encourages entrepreneurs to establish and expand their operations in Uttar Pradesh, contributing to the state's economic development and positioning it as a key hub for textile and garment production. This exemption directly addresses the energy costs faced by industries, making the state a more attractive destination for textile manufacturers looking for long-term viability and reduced overheads. The policy reflects the government's commitment to supporting key industrial sectors through targeted fiscal incentives.
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
What You Get
New textile and garmenting units will benefit from a 100% exemption from electricity duty for a substantial period of 10 years. This direct financial relief on energy consumption costs serves as a powerful incentive, significantly reducing operational expenses for eligible units. The exemption helps improve profitability, enhances cash flow, and enables businesses to reinvest savings into expansion, technology upgrades, and workforce development. This long-term support mechanism is a cornerstone of the UP Textile and Garmenting Policy 2022, aimed at fostering a robust and sustainable industrial ecosystem within the state.
- Disbursement
- Reimbursement
- Duration
- 122 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
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 Electricity Duty Exemption Scheme?
The scheme offers a 100% exemption from electricity duty for new textile and garmenting units for a period of 10 years, significantly reducing their operational costs.
Who is eligible to claim this exemption?
New textile and garmenting units established within Uttar Pradesh are eligible to claim this benefit under the UP Textile and Garmenting Policy 2022.
How long does the exemption last?
Eligible units will receive the 100% electricity duty exemption for a duration of 10 years from the date of their commercial operation.
Is there a specific application deadline for this scheme?
The scheme is part of the broader UP Textile and Garmenting Policy 2022 and generally remains open for applications as long as the policy is active, on a rolling basis for new units.
What kind of businesses can apply?
The scheme is open to private limited companies, LLPs, partnerships, proprietorships, and one-person companies that establish new textile and garmenting manufacturing units in Uttar Pradesh.
Can existing units avail this exemption?
No, the policy explicitly states that the exemption is for "new textile and garmenting units" only.
Is there a specific financial amount associated with this exemption?
The benefit is a 100% exemption from electricity duty, which means the financial saving will vary depending on the unit's actual electricity consumption, rather than a fixed grant amount.
Sources
Data on this page is compiled from official program and provider references.
