UP MSME Promotion Policy: capital subsidy, interest subsidy and guarantee fee
A programme by Government of Uttar Pradesh
The MSME department's package for new micro, small and medium units: an investment promotion capital subsidy, an interest subsidy for new micro enterprises, stamp-duty relief and the state paying the one-time CGTMSE guarantee fee on collateral-free loans.
At a glance
| Best for | New micro, small and medium units in Uttar Pradesh. |
|---|---|
| Stage | Early revenue – Growth |
About UP MSME Promotion Policy: capital subsidy, interest subsidy and guarantee fee
The Department of MSME & Export Promotion's policy, notified in September 2022, runs for five years or until a new policy replaces it. It is for new units set up in Uttar Pradesh.
What you get
- An investment promotion capital subsidy, with a ceiling per unit
- A capital interest subsidy for new micro enterprises, paid over five years
- Stamp-duty relief
- The state pays the one-time CGTMSE guarantee fee on collateral-free bank loans up to a stated limit
- A higher rate of investment promotion assistance for SC, ST and women entrepreneurs
Who can apply
- New micro, small and medium units set up in Uttar Pradesh
- A unit gets benefits under one state policy only for any one head of support
- Tobacco, alcohol, firecrackers and thin plastic bags are excluded
How selection works: A divisional committee approves, with a state-level empowered committee behind it.
How to apply: Apply online through the District Industries Centre.
Where to apply
Other Government of Uttar Pradesh programmes
- UP Startup Policy: startup grants and allowancesCash support for early startups from the Department of IT & Electronics: a monthly sustenance allowance up to prototype stage, a one-time prototype grant, seed capital and a matching grant for startups that raise outside funding.
- UP Startup Policy: reimbursements and interest subventionCost reimbursements rather than grants: accelerator programme participation, quality certification and patent filing, interest on term loans, and employer PF and ESI contributions.
- UP Startup Policy: deep-tech startup supportA heavier tier for deep-tech startups recommended by a Centre of Excellence or innovation hub: enhanced prototype and seed assistance, an R&D matching grant, cloud and compute reimbursement, and patient capital for a few startups a year.
- UP Startup Policy: free incubationTwo years of free incubation at StartinUP-recognised incubators and Centres of Excellence.
- UP Startup Policy: Startup Week and Grand ChallengesRecurring state events that pay winners: Startup Week proof-of-concept work orders in selected sectors, and Grand Challenges grant-in-aid for scaling-stage startups.
- UP Startup Fund (fund of funds)A state fund of funds that invests in venture 'daughter funds' rather than in startups directly. A founder pitches the funds it backs, not the fund itself.
- UP MSME Promotion Policy: EPF, quality, patent and ERP reimbursementsReimbursement lines in the same MSME policy: employer EPF, quality certification, patent and GI filing, ERP and ICT adoption, and part of the cost of raising equity on a stock exchange.
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- UP IT and ITeS PolicyThe IT & Electronics department's package for IT and ITeS units setting up or expanding in Uttar Pradesh: capital subsidy, interest subsidy, certification reimbursement and a course-fee reimbursement for UP-domiciled candidates.
- UP Food Processing Industry PolicyThe Horticulture department's package for food processing units, including a capital subsidy for new and expanding units and technology support for food-processing startups in the agri value chain.
- UP Textile and Garmenting PolicyThe Textile directorate's package for textile and garment units: a capital subsidy on plant and machinery, an employment subsidy for large garmenting units, and extra support in Poorvanchal and Bundelkhand.
- UP Warehousing and Logistics PolicyUPSIDA's package for warehouses, cold chains, silos and other logistics infrastructure: a capital subsidy on storage facilities plus stamp-duty and land-use relief.