UP Handloom/Powerloom Subsidy (IIHT Holders)
By Government of Uttar Pradesh
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Quick Answer
Uttar Pradesh subsidy of 75 percent of project cost, up to ₹60 lakh, for IIHT diploma holders setting up new handloom or power loom units in the state.
- Funding amount
- Varies
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh
- Application deadline
- Rolling
- Location
- Uttar Pradesh
About this subsidy
Holders of a three-year diploma from the Indian Institute of Handloom Technology (IIHT) can get a subsidy of 75 percent of the total project cost to set up a new handloom or power loom unit in Uttar Pradesh. The maximum is ₹20 lakh per person (or group) for handlooms and ₹60 lakh per person (or group) for power looms. The subsidy is non-repayable. It sits under the UP Textile and Garmenting Policy 2022.
You must be starting new employment related to weaving. You must install 5 to 20 handlooms or 5 to 10 power looms in a shed.
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,…
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What You Get
This program offers a significant financial incentive in the form of a 75 percent subsidy on the total project cost. For handloom units, the maximum subsidy amount is ₹20 lakh per person (or group). For power loom units, the maximum subsidy amount is ₹60 lakh per person (or group). This substantial non-repayable financial support directly reduces the capital expenditure for IIHT diploma holders establishing new weaving businesses, enabling them to invest in essential machinery, infrastructure, and operational setup without significant debt burden. The subsidy aims to make entrepreneurship in the textile sector more accessible and sustainable.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for the subsidy are typically reviewed by a committee or designated authority within the Uttar Pradesh Government's Department of Textiles and Garmenting. The evaluation will likely focus on the applicant's eligibility based on IIHT diploma, the viability and scope of the proposed handloom or power loom unit, and the completeness of the project proposal and supporting documents. Decisions are made based on adherence to policy guidelines and the potential impact of the proposed unit on employment and local industry.
Application Process
- 1
Review Policy Guidelines
Thoroughly read the UP Textile and Garmenting Policy 2022 document for detailed eligibility and application instructions.
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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 objective of this subsidy scheme?
The primary objective is to incentivize IIHT diploma holders to establish new handloom or power loom units in Uttar Pradesh, fostering entrepreneurship and creating employment in the textile sector under the UP Textile and Garmenting Policy 2022.
Who is eligible to apply for this subsidy?
Students who have completed a three-year diploma from the Indian Institute of Handloom Technology (IIHT) and are establishing new weaving units with 5 to 20 handlooms or 5 to 10 power looms in a shed are eligible.
What is the maximum subsidy amount available?
The maximum subsidy is ₹20 lakh per person (or group) for handloom sector projects and ₹60 lakh per person (or group) for power loom sector projects. The subsidy covers 75% of the project cost, up to these limits.
Does the applicant need to co-finance the project?
Yes, as the subsidy covers 75% of the project cost, the applicant is required to co-finance the remaining 25% of the project cost.
Is this subsidy repayable?
No, this is a non-repayable subsidy aimed at supporting the establishment of new weaving units.
Which states are covered by this policy?
This subsidy is part of the UP Textile and Garmenting Policy 2022, and is applicable for units established within the state of Uttar Pradesh.
Sources
Data on this page is compiled from official program and provider references.
