Power Tariff Subsidy UP Textile Policy
By Government of Uttar Pradesh
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Quick Answer
Units in PM MITRA Park can claim an electricity tariff subsidy of INR 2.00/kWh, up to INR 60 lakh annually for 5 years.
- Funding amount
- Up to ₹3Cr
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh
- Application deadline
- Rolling
- Location
- Uttar Pradesh
About this subsidy
The Power Tariff Subsidy, an integral part of the UP Textile and Garmenting Policy 2022, is designed to significantly boost the textile and garmenting manufacturing sector within Uttar Pradesh, particularly focusing on units established in the strategically important PM MITRA Park scheme. This initiative aims to alleviate a major operational cost for businesses: electricity expenses. By providing a direct subsidy on power tariffs, the policy seeks to enhance the financial viability and global competitiveness of these manufacturing units. It encourages further investment, job creation, and technological advancement in the state's textile industry, aligning with the government's broader vision for industrial development and economic prosperity. The program specifically targets commercial production units that contribute substantially to local employment, fostering a robust and sustainable industrial ecosystem.
Eligibility
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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 ₹3Cr
What You Get
Eligible units will receive a substantial power tariff subsidy of INR 2.00 per billed unit (Kwh) for a continuous period of 5 years, calculated from their date of commencement of commercial production. This financial relief is strategically capped at a maximum of INR 60 Lakh per annum per individual unit, translating to a potential total benefit of INR 3 Crore over the five-year program duration. This significant direct subsidy plays a crucial role in lowering the recurring operational costs associated with electricity consumption for textile and garmenting units, thereby improving their profit margins and overall economic resilience. Beyond the direct financial injection, participation in this government-backed incentive provides regulatory certainty and demonstrates governmental support for the industry, which can aid in long-term business planning and investment attraction.
- Disbursement
- Reimbursement
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Register Under Policy
Units must register under the UP Textile and Garmenting Policy 2022.
You - 2
- 3
- 4
- 5
- 6
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 Power Tariff Subsidy under the UP Textile and Garmenting Policy 2022?
This subsidy is a key incentive under the UP Textile and Garmenting Policy 2022, offering financial support to eligible manufacturing units. It provides INR 2.00 per billed unit (Kwh) on electricity purchases for five years, aimed at reducing operational costs, with an annual cap of INR 60 lakh per unit.
Who is eligible for this power tariff subsidy?
Eligibility is specifically for manufacturing units that are established within the designated PM MITRA Park scheme in Uttar Pradesh. Furthermore, these units must demonstrate a commitment to job creation by generating a minimum employment of 50 individuals. The subsidy becomes active from the date of their commercial production commencement, for electricity procured from a licensed utility provider.
What is the maximum amount of subsidy a unit can receive annually and overall?
A single eligible unit can receive a maximum power tariff subsidy of INR 60 Lakh per annum. Given the five-year tenure of the subsidy, the total maximum benefit over the entire program duration for a unit could amount to INR 3 Crore.
How long is the Power Tariff Subsidy provided to eligible units?
The subsidy is provided for a period of 5 years. This tenure begins precisely from the date the eligible unit officially commences its commercial production operations, ensuring a sustained period of cost relief.
Are there any specific employment criteria to qualify for the subsidy?
Yes, a critical eligibility criterion is the generation of a minimum of 50 jobs. Units must meet and maintain this employment threshold to be eligible for and continue receiving the power tariff subsidy, emphasizing the policy's focus on economic growth and job creation.
Which geographical area does this policy and subsidy cover?
This specific Power Tariff Subsidy is exclusively applicable to manufacturing units that are established and operating within the PM MITRA Park scheme, which are located within the state of Uttar Pradesh, India. It's a targeted incentive for a specific industrial zone.
Can existing units avail this subsidy?
The policy states 'Units set up in the PM MITRA Park scheme that generate minimum employment of 50' and 'from the date of commencement of commercial production'. This suggests it's primarily for newly established or relocated units within the PM MITRA Park, rather than pre-existing units outside it. Units would need to commence commercial production within the park to qualify.
Sources
Data on this page is compiled from official program and provider references.
