U.P. Handlooms, Powerlooms, Silk, Textile & Garmenting Policy 2017

The Handlooms, Power-looms, Silk, Textile & Garmenting Policy 2017 of the Government of Uttar Pradesh promotes and develops all segments of the textile value chain in the state including handlooms, power-looms, silk (sericulture), textile manufacturing and garmenting, by attracting investment, creating infrastructure, boosting employment, and supporting backward & disadvantaged weavers/entrepreneurs. You as an MSME or startup enterprise can benefit from incentives under this policy if you engage in these segments within Uttar Pradesh.

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

Key Features

Land & infrastructure support: The policy mandates government allotment of land for textile/garment units and encourages private development of textile & apparel parks. This simplifies setup for you and supports access to infrastructure like roads, power, dormitories.
Fiscal grants & tax concessions: By providing stamp duty exemptions, SGST refunds and mandi-fee waivers, the policy lowers your cost of establishment and operating burden in the early years.
Investment incentives for units: Subsidies on plant & machinery investment, interest subsidy on eligible loans, subsidies for quality labs and infrastructure mean your upfront capex and financing cost reduce.
Special provisions for mega/super-mega units and textile parks: Larger units and integrated parks get special support - helpful if your enterprise plans scale or you join a park.
Inclusive focus: By emphasising SC/ST/Women/Specially-abled entrepreneurs and backing skill training, the policy helps widen participation and you may benefit from extra concessions if you fall into these categories.
Marketing & export encouragement: Support for freight reimbursement, product marketing, quality labs and brand building helps you reach markets beyond local, boosting your growth potential.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Land subsidy/allotment	Land allotment by state agencies; private park support	If you set up a unit and need land in a textile park, the policy ensures conducive allotment and possible subsidy via park developer.
Stamp duty exemption	Stamp duty waived 100% (in most districts) for land/buildings for units and parks.	Example: You purchase industrial land worth ₹ 1 crore; stamp duty that you’d otherwise pay is fully exempted, reducing cost.
SGST refund & tax concessions	SGST refund for 10 years: 90% for MSMEs; 80% for mega units.	Example: Your MSME textile unit pays SGST of ₹ 20 lakh a year; for first 10 years you may get refund of approx. ₹ 18 lakh/year (90%).
Capital subsidy on machinery	25% subsidy on plant & machinery investment.	Example: You invest ₹ 1 crore in plant & machinery; subsidy = ₹ 25 lakh.
Interest subsidy	Interest subsidy @7% (upto limit) for TUFS procurement for 7 years.	Example: You borrow ₹ 75 lakh for machinery at 12% interest; you may receive subsidy of ~7% interest, reducing your cost.
Infrastructure interest subsidy	Interest subsidy @5% upto ₹ 1 crore for 5 years per unit for infra amenities (roads, power, etc).	Example: You invest ₹ 1.2 crore in in-house road, drainage & power supply; eligible subsidy on interest cost for ₹ 1 crore part.
EPF reimbursement	EPF reimbursement for 5 years: 50% for new units with min 100 workers; 60% for those with min 200 workers.	Example: You recruit 150 workers; for 5 years you may get 50% reimbursement of employer’s EPF contribution for those workers.

Eligibility Criteria

Who Can Apply:

New and expansion/diversification textile units covering handloom, power-loom, silk, weaving, knitting, processing, garmenting, made-ups, technical textiles and jute products.
Units located in Uttar Pradesh in any region; extra benefits apply in designated backward zones.
Units meeting the threshold criteria for investment, employment etc as defined in policy (for example mega & super-mega units).

Who Cannot Apply:

Units outside the state of Uttar Pradesh.
Units that do not fall in the defined textile/garment value chain segments of this policy.
Units seeking benefits for purely trading or retailing activities (unless covered by manufacturing/processing).
Units that commenced commercial production prior to eligibility or applied post the policy period (check transition rules).

Documents Required

Application Form (as per policy/nodal agency)
Project Report / Detailed Project Report (DPR) including cost, capacity, product mix, employment numbers, land/plant & machinery details.
Land purchase/lease document (especially if availing land subsidy).
State-agency land allotment proof (if applicable).
Bank sanction letter for plant & machinery loan (if seeking interest subsidy).
Investment/create employment schedules.
Certificate of registration/approval of unit.
Technical/manufacturing process details (for revision/expansion).
Statutory approvals (environment, building, etc) as relevant.
Cluster/park documents if applying under park development incentives.

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: Investors, textile park developers, MSME units needing hand-holding.

Option 2: Direct Application via State Portal

Visit the official portal of Invest UP (Department of MSME & Export Promotion, Uttar Pradesh).
Download the policy document “Handloom, Powerloom, Silk, Textile & Garmenting Policy 2017”.
Submit project proposal, including details on investment, employment, product, value-chain segment, location, backward region (if applicable).
Apply for incentives via single-window or appropriate nodal agency.
On sanction, implement project, meet conditions, claim incentives as per timelines and rules.

Option 3: Through Textile/Industrial Park Developer or Cluster Agency

If you plan to develop a textile park/estate, work through nodal Industrial Development Authority or textile park cell.
Prepare a DPR for park infrastructure, plot allotments, staff dormitories, etc.
Apply for park-level incentives (land subsidy, stamp duty, interest subsidy) and coordinate with units for downstream incentives.

Power Combos with The Scheme