Uttar Pradesh PSP Capital Subsidy
By Government of Uttar Pradesh
Check your eligibility
Sign up and we'll tell you whether your startup qualifies for this grant.
Quick Answer
Provides a base capital subsidy for Mega or Above Pumped Storage Plant (PSP) projects in Uttar Pradesh, promoting industrial investment and energy infrastructure.
- Funding amount
- Up to ₹150Cr
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh
- Application deadline
- Rolling
- Location
- Uttar Pradesh
About this subsidy
The Uttar Pradesh Base Capital Subsidy for Pumped Storage Plants is an initiative under the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022. This incentive aims to attract significant investment in large-scale energy infrastructure by providing financial support to Pumped Storage Plant (PSP) projects categorized as Mega or Above. The subsidy is designed to offset a portion of the Eligible Capital Investment (ECI), thereby enhancing the financial viability and attractiveness of developing critical energy storage facilities within the state. It plays a crucial role in promoting renewable energy integration and ensuring grid stability by supporting substantial projects that contribute to Uttar Pradesh's industrial growth and energy security. The policy reflects the state's commitment to fostering a conducive environment for industrial development and leveraging private sector participation in key infrastructure sectors.
Eligibility
See if you're eligible
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
- Amount
- Up to ₹150Cr
What You Get
Eligible Pumped Storage Plant (PSP) projects categorized as Mega or Above can receive a Base Capital Subsidy ranging from 18% to 30% of their Eligible Capital Investment (ECI). This subsidy is disbursed over a period of 12 to 20 years, with annual ceilings between ₹10 Crore and ₹150 Crore. The support aims to reduce the financial burden of large-scale energy projects and encourage investment in Uttar Pradesh's energy sector. While the subsidy provides direct financial assistance, it does not include additional GCM (Goods and Services Tax Capitalization Mechanism) or other boosters, focusing solely on the base capital support.
- Disbursement
- Tranched
- Duration
- 146 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process for the Base Capital Subsidy involves a thorough evaluation by the authorities responsible for implementing the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022. This typically includes:
- Initial Screening: Review of the application for completeness and adherence to basic eligibility criteria for Mega or Above PSP projects.
- Technical and Financial Assessment: A detailed evaluation of the project proposal, including its technical feasibility, financial viability, and compliance with policy definitions for ECI and project classification.
- Committee Review: Assessment by a high-level committee comprising experts and government officials who ensure the project aligns with the state's industrial and energy development goals.
- Approval and Sanction: Upon successful evaluation, the subsidy is approved and sanctioned, paving the way for disbursement based on defined milestones and annual ceilings.
Application Process
- 1
Review Policy
Review the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022 for detailed guidelines and specific requirements for PSP projects.
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 Base Capital Subsidy for Pumped Storage Plants?
It is a financial incentive provided under the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022, offering a capital subsidy for eligible Pumped Storage Plant (PSP) projects in the state.
Who is eligible to claim this subsidy?
Eligible Pumped Storage Plant (PSP) projects that are categorized as Mega or Above, as defined by the policy, can claim this subsidy.
What is the amount of the subsidy?
The subsidy ranges from 18% to 30% of the Eligible Capital Investment (ECI). It is disbursed over 12 to 20 years, subject to annual ceilings of ₹10 Crore to ₹150 Crore.
Are there any additional benefits or boosters applicable?
No, the GCM (Goods and Services Tax Capitalization Mechanism) and all other boosters defined in the policy are explicitly not applicable for these projects.
How can one apply for this subsidy?
The process to claim this subsidy is detailed within the broader application process of the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022. Applicants should refer to the official policy document for detailed instructions and required forms.
Sources
Data on this page is compiled from official program and provider references.
