UP Capital Subsidy Scheme 2022
By Government of Uttar Pradesh
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Quick Answer
Capital subsidy of 10-30% of eligible capital investment for Large, Mega, Super Mega and Ultra-Mega projects under the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022.
- Funding amount
- ₹5Cr – ₹210Cr
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh
- Application deadline
- Rolling
- Location
- Uttar Pradesh
About this subsidy
Large, Mega, Super Mega and Ultra-Mega industrial projects in Uttar Pradesh can get a Capital Subsidy of 10% to 30% of Eligible Capital Investment (ECI). It is Option 1 of the Investment Promotion Subsidy under the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022.
The subsidy is paid over 10 to 20 years. The annual ceiling runs from ₹5 crore to ₹150 crore depending on project category and region, and it is multiplied by a Gross Capacity Utilisation Multiple (GCM). So payouts follow project category, regional development needs and gross capacity utilisation.
Mega and above projects can add Capital Subsidy Boosters for Employment, Exports and Ecosystem development, each worth 2% to 4% of ECI. With boosters, the annual ceiling can reach ₹210 crore.
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
- ₹5Cr – ₹210Cr
What You Get
This Capital Subsidy scheme offers significant financial incentives to industrial undertakings. Beneficiaries can avail a Base Capital Subsidy ranging from 10% to 30% of the Eligible Capital Investment (ECI), disbursed over 10 to 20 years. The annual ceiling for this subsidy ranges from ₹5 crore to ₹150 crore, depending on the project category and region. This amount is further multiplied by a Gross Capacity Utilisation Multiple (GCM), ensuring performance-linked incentives.
For Mega and above category projects, additional Capital Subsidy 'Boosters' are available for Employment, Exports, and Ecosystem development, each offering 2-4% of ECI. With these boosters, the annual ceiling can reach up to ₹210 crore. This comprehensive financial support helps offset substantial capital expenditure, making Uttar Pradesh an attractive destination for industrial investment. Beyond the direct financial benefit, the policy provides a framework for regulatory and administrative support to facilitate industrial setup and operations.
- Disbursement
- Tranched
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection and approval process for the Capital Subsidy involves several stages. After application submission, proposals are reviewed by a committee comprising officials from the Department of Industrial Development and other relevant state agencies. The evaluation focuses on the project's adherence to policy guidelines, quantum of eligible capital investment, employment generation potential, and overall economic impact. For Mega and above projects, specific criteria for Employment, Exports, and Ecosystem Boosters will also be assessed. Approved projects receive an 'Entitlement Certificate' outlining the subsidy terms and conditions, after which annual disbursements commence based on agreed-upon milestones and capacity utilization metrics.
Application Process
- 1
Project Registration
Register the industrial project with the designated state government authority, usually through an online portal.
You - 2
- 3
- 4
- 5
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 the Capital Subsidy scheme?
The scheme aims to promote industrial development and employment generation in Uttar Pradesh by providing financial incentives, specifically capital subsidies, to industrial undertakings making significant investments in the state.
Who is eligible to claim the Capital Subsidy?
Industrial undertakings classified as Large, Mega, Super Mega, or Ultra-Mega projects are eligible to avail this capital subsidy under the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022.
What is the maximum amount of subsidy an industrial unit can receive?
The maximum annual subsidy can be up to ₹210 crore, inclusive of the Base Capital Subsidy and additional Boosters for Employment, Exports, and Ecosystem. The subsidy is also linked to a percentage of Eligible Capital Investment (ECI).
How is the Capital Subsidy disbursed?
The Capital Subsidy is disbursed in annual installments over a period of 10 to 20 years. The actual amount disbursed each year is subject to an annual ceiling and is multiplied by a Gross Capacity Utilisation Multiple (GCM).
Is this scheme open to startups?
While it is broadly for 'industrial undertakings', the categories 'Large, Mega, Super Mega, Ultra-Mega projects' typically refer to established entities undertaking significant new investments, rather than early-stage startups. Startups would generally need to scale to these definitions to be eligible.
Are there any additional benefits beyond the base subsidy?
Yes, Mega and above category projects can avail additional Capital Subsidy in the form of 'Boosters' for Employment, Exports, and Ecosystem development, each contributing 2-4% of Eligible Capital Investment.
Sources
Data on this page is compiled from official program and provider references.
