UP Capital Subsidy for ICD, CFS & Air Freight Station Projects
By Government of Uttar Pradesh
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Quick Answer
ICD, CFS and AFS projects get 25% of eligible capital investment, up to ₹25 crore, or ₹50 crore in Logistics Zones.
- Funding amount
- Up to ₹50Cr
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh
- Application deadline
- Rolling
- Location
- Uttar Pradesh
About this subsidy
The Capital Subsidy scheme is a key incentive under the New UP Warehousing & Logistics Policy 2022, introduced by the Government of Uttar Pradesh. This policy aims to bolster the state's logistics infrastructure by attracting investments in critical facilities such as Inland Container Depots (ICDs), Container Freight Stations (CFSs), and Air Freight Stations (AFSs). By offering substantial financial support, the program seeks to enhance Uttar Pradesh's position as a logistics hub, improve connectivity, and reduce operational costs for businesses across various sectors. The subsidy encourages the establishment and expansion of modern warehousing and logistics facilities, which are essential for efficient supply chain management and economic growth. This initiative is designed to create a conducive investment environment, fostering the development of high-quality, integrated logistics solutions within the state.
Eligibility
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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 ₹50Cr
What You Get
The program offers a significant Capital Subsidy at the rate of 25% of Eligible Capital Investment for approved ICD/CFS/AFS projects. The maximum subsidy is ₹25 crore for projects established anywhere in Uttar Pradesh. For projects strategically located in designated Logistics Zones within the state, the maximum subsidy can go up to ₹50 crore. This direct financial support aims to offset a substantial portion of the capital expenditure, making large-scale logistics infrastructure projects more viable and attractive for investors. The subsidy is non-repayable, providing direct capital infusion to enhance project economics.
- Disbursement
- Milestone Based
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for the Capital Subsidy are typically evaluated by a dedicated committee comprising officials from the Industrial Development Department and other relevant state agencies. The process involves a rigorous assessment of the project proposal's alignment with the policy objectives, the eligibility of the capital investment, and the project's overall viability and potential impact on the state's logistics sector. This may include financial due diligence, technical feasibility studies, and site visits to confirm compliance with policy guidelines and project implementation progress before approval and subsequent disbursement of the subsidy.
Application Process
- 1
Apply Online/Offline
Submit your detailed project proposal and required documents through the designated application portal or physically to the nodal agency.
You - 2
- 3
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- 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 Capital Subsidy scheme?
The Capital Subsidy scheme is an incentive under the New UP Warehousing & Logistics Policy 2022, providing financial support for setting up and expanding eligible logistics infrastructure projects in Uttar Pradesh.
Who is eligible to claim this subsidy?
The subsidy is specifically provided to entities undertaking Inland Container Depot (ICD), Container Freight Station (CFS), and Air Freight Station (AFS) projects within Uttar Pradesh.
What is the maximum amount of subsidy I can receive?
The maximum subsidy is ₹25 crore for projects located anywhere in Uttar Pradesh. However, for projects established within designated Logistics Zones in the state, the maximum subsidy can be up to ₹50 crore.
How is the subsidy amount calculated?
The subsidy is calculated at a rate of 25% of the total eligible capital investment made in the ICD/CFS/AFS project, subject to the maximum limits specified.
Are there any specific locations that receive higher benefits?
Yes, projects set up in designated Logistics Zones within Uttar Pradesh are eligible for a higher maximum subsidy of ₹50 crore, compared to ₹25 crore for projects elsewhere in the state.
Is this a loan, or does the government take equity?
No, this is a capital subsidy, meaning it is a non-repayable grant on your capital investment. The government does not take any equity in your project or company.
Sources
Data on this page is compiled from official program and provider references.
