Scheme for Promoting Establishment of Private Industrial Parks 2017

The Scheme for Promoting Establishment of Private Industrial Parks 2017 is run by the Government of Uttar Pradesh through its nodal investment-promotion agency Invest UP (Industrial Investment & Employment Promotion Dept). The purpose of the scheme is to encourage the private sector to develop large-scale industrial parks/estates (including agro-parks) in the state, to provide world-class infrastructure, create manufacturing clusters, and thereby boost investment, job creation and industrialisation across Uttar Pradesh. For your business as an MSME/start-up, this means that if you are a developer of an industrial park, or you plan to locate in one, you may benefit from incentives for the park which improves supply-side infrastructure (plots, services) and gives you access to better space.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Minimum land area thresholds: The scheme defines that for a Private Industrial Park (PIP) the land should be: more than 20 acres in Bundelkhand & Poorvanchal; 30 acres in Madhyanchal & Paschimanchal; and 50 acres in case of agro-parks.
Interest subsidy on loans: The scheme gives interest reimbursement/subsidy to developers: e.g., 50% of annual interest on loan for land purchase for 7 years; 60% of interest for loan for building infrastructure for 7 years; 60% of interest for worker hostel/dormitory housing for 7 years.
Stamp duty exemptions/reimbursements: 100% exemption/reimbursement to developer and 50% exemption to first buyer of plot/ unit in the park.
Coverage of new and upgrading parks: The policy covers both setting up new private industrial parks/estates and upgrading existing ones/ developing integrated manufacturing clusters.
Regional differentiation: The scheme distinguishes regions of the state: Bundelkhand & Poorvanchal (more backward) versus Madhyanchal & Paschimanchal (except certain districts) for eligibility/thresholds.
Defined application period and implementation mechanism: The scheme document says it remains open for five years from 13 July 2017 and implementation via an Empowered Committee for Industrial Parks (ECIP) constituted under the Infrastructure & Industrial Development Dept.

Financial Assistance

Component	Assistance Provided	Detailed Explanation of Component & Assistance Provided (example)
Loan for land purchase by developer	Interest subsidy/reimbursement: 50% of annual interest on loan for land purchase for 7 years (subject to maximum limit)	Example: A park developer takes a ₹20 crore loan for land purchase; interest is say ₹1 crore/year; they get 50% reimbursement → ₹50 lakh/year for 7 years.
Loan for infrastructure (roads, services, utilities)	Interest subsidy/reimbursement: 60% of annual interest on loan for infrastructure for 7 years (subject to maximum limit)	Example: Developer borrows ₹50 crore for internal roads or water or power; interest may be ₹3 crore/year; subsidy ~60% → ₹1.8 crore/year for 7 years.
Loan for worker hostel/ dormitory housing in park	Interest subsidy/reimbursement: 60% of annual interest on loan for hostel housing for 7 years (subject to maximum limit)	Example: Loan ₹10 crore for worker housing; interest say ₹60 lakh/year; subsidy ~60% → ~₹36 lakh/year for 7 years.
Stamp duty exemption	100% exemption/reimbursement for developer; 50% exemption for first buyer of a plot/unit in the park	Example: If land purchase by developer had stamp duty of ₹1 crore, full exempt means saving ₹1 crore. If first buyer’s plot had duty ₹20 lakh, 50% exempt → saving ₹10 lakh.

Eligibility Criteria

Who Can Apply:

A private developer/planner for an industrial park or estate in the State of Uttar Pradesh.
The park/estate must meet the minimum area threshold: At least 20 acres in Bundelkhand & Poorvanchal; at least 30 acres in Madhyanchal & Paschimanchal; and for agro parks, usually 50 acres.
The project must qualify under the definitions of “Private Industrial Park” as per the Scheme guidelines.

Who Cannot Apply:

Private park proposals that do not meet the minimum area requirement.
Proposals outside the geographical zones specified or not conforming to eligibility/loan criteria.
Projects where land is not free from encumbrance or where park developer does not take required clearance/loan.
Entities not qualifying as “park developer” under the Scheme’s definitions.

Documents Required

Developer identity & registration (company/LLP).
Land ownership/lease documents showing area (≥ minimum threshold).
Loan sanction letter for land acquisition and infrastructure.
Infrastructure development plan (services, roads, utilities, dormitories).
DPR including cost estimates, timeline, financing structure.
Undertaking to meet size and eligibility criteria of the park.
Relevant clearances (environmental, land conversion) as required.

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.

Recommended for: Developers wishing to ensure proper paperwork, incentive alignment and ease of processing.

Option 2: Direct Application via State Portal

Visit the official portal of Invest UP (Government of Uttar Pradesh).
Download the Scheme guidelines and application form for the “Private Industrial Parks Scheme 2017”.
Submit your project proposal including land details, financing plan, infrastructure development plan, and loan details.
Provide proof of eligibility (size, region, developer credentials).
On sanction, developer obtains benefits (interest subsidy, stamp duty exemption) per the Scheme guidelines.

Option 3: Through the District Industrial Development Authority / Nodal Agency

Approach your local DIC/industrial park cell for initial counselling.
Prepare Detailed Project Report (DPR) with assistance.
Submit through the nodal agency or Invest UP.
Track approvals and disbursement of incentives.

Power Combos with The Scheme