UP Stamp Duty Exemption for PSP Scheme
By Government of Uttar Pradesh
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Quick Answer
Provides stamp duty exemption up to 100% for eligible Pumped Storage Plant projects in specified regions of Uttar Pradesh to promote industrial investment and energy infrastructure development.
- Funding amount
- Varies
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh
- Application deadline
- Rolling
- Location
- Uttar Pradesh
About this subsidy
The Stamp Duty Exemption for Pumped Storage Plants is an important incentive offered under the comprehensive Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022. This particular scheme is strategically designed to invigorate the energy sector within Uttar Pradesh by specifically targeting the establishment and expansion of Pumped Storage Plant (PSP) projects across the state. By providing substantial exemptions on stamp duty, the Government of Uttar Pradesh aims to significantly alleviate the financial burden on developers and investors, thereby fostering rapid development of sustainable energy infrastructure crucial for the state's growing power demands.
Eligible PSP projects, which must be categorized as 'Mega' or 'Above' as per the policy definitions, can access a tiered exemption structure. This structure is geographically differentiated, offering varying levels of exemption based on the project's location within Uttar Pradesh. This approach not only ensures a balanced distribution of industrial growth but also encourages investment in less developed regions. The policy underscores the state's unwavering commitment to creating an attractive and supportive environment for large-scale industrial ventures, enhancing its energy security, and driving employment generation across various districts.
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
Eligible Pumped Storage Plant (PSP) projects stand to benefit from a substantial stamp duty exemption, a critical financial relief applied differentially based on the project's geographical location within Uttar Pradesh. Specifically:
- Projects located in the Bundelkhand and Poorvanchal regions are eligible for a 100% stamp duty exemption.
- Projects situated in the Madhyanchal and Paschimanchal regions (with the exception of Gautam Buddh Nagar and Ghaziabad districts) qualify for a 75% stamp duty exemption.
- Projects within the Gautam Buddh Nagar and Ghaziabad districts will receive a 50% stamp duty exemption. This tiered approach significantly reduces the initial capital outlay and subsequent operational costs associated with land acquisition and other statutory requirements for developing and operating pumped storage facilities. Such financial incentives are pivotal in attracting large-scale investments, promoting robust infrastructure development, and stimulating economic activities in alignment with the state's industrial policy objectives.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process for the Stamp Duty Exemption involves a rigorous evaluation by the nodal agency or department appointed by the Government of Uttar Pradesh. Applications are first screened for completeness and adherence to basic documentation requirements. Subsequently, a technical and financial assessment is conducted to confirm that the Pumped Storage Plant project meets the 'Mega or Above' classification as defined in the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022. The project's proposed location is also verified to ensure the correct application of the tiered stamp duty exemption. The final approval is granted by a designated committee or authority, ensuring that all policy stipulations are met and the incentive is extended to truly eligible industrial projects, contributing to the state's energy infrastructure development.
Application Process
- 1
Review Policy
Applicants study the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022 to understand the scheme details.
You - 2
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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 benefit of this scheme?
The scheme offers significant stamp duty exemption for eligible Pumped Storage Plant projects, reducing their financial outflow during establishment or expansion within Uttar Pradesh.
Which projects are eligible for this exemption?
This scheme specifically targets Pumped Storage Plant (PSP) projects that are officially categorized as 'Mega' or 'Above' as per the definitions provided in the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022.
How does the exemption percentage vary?
The exemption percentage is geographically differentiated: 100% in Bundelkhand & Poorvanchal, 75% in Madhyanchal & Paschimanchal (excluding Gautam Buddh Nagar & Ghaziabad districts), and 50% in Gautam Buddh Nagar & Ghaziabad districts.
What is a Pumped Storage Plant?
A Pumped Storage Plant (PSP) is a type of hydroelectric energy storage power plant that stores energy by pumping water from a lower reservoir to a higher reservoir, then releasing it to generate electricity during periods of high demand.
Where can I find the official policy document?
The complete details regarding this specific exemption are outlined in Section 12.7.3 i. of the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022, which is publicly available on the Invest UP website.
Is there a specific application deadline?
No specific deadline is mentioned for this stamp duty exemption. It is generally available on an ongoing basis for eligible projects as long as the overarching Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022 remains in effect.
Sources
Data on this page is compiled from official program and provider references.
