UP Textile and Garmenting Policy 2022- Subsidy for Infrastructure
The Uttar Pradesh Textile and Garmenting Policy 2022 was announced by the Government of Uttar Pradesh through the Department of Handloom and Textiles on 17th October 2022. The main purpose of this policy is to position Uttar Pradesh as a leading hub for textiles and apparel manufacturing by encouraging investment, infrastructure creation, and employment generation. You, as an MSME or start-up operating in the textile or garmenting sector, can benefit from various incentives under this policy. The Infrastructure Subsidy component specifically helps industrial units to develop essential internal infrastructure such as roads, power supply, water, drainage, worker housing, and environment-friendly facilities.
Key Features
- Internal Infrastructure Development Subsidy: The scheme provides 50% subsidy of the total project cost for developing internal infrastructure, such as roads, drainage, water pipelines, and power distribution systems, up to ₹3 crore per unit.
- Effluent Treatment Plant (ETP) and DG Set Subsidy: To promote environmental sustainability and reliable operations, the government provides 50% subsidy for setting up ETPs and DG sets, with a maximum limit of ₹5 crore per unit.
- Training, R&D, and Testing Facilities Subsidy: A 25% subsidy (maximum ₹2.5 crore) is available for building in-house training centres, R&D units, or quality testing laboratories..
- Worker Hostel and Staff Quarters Subsidy: To improve worker welfare, the scheme offers 25% subsidy, up to ₹5 crore per unit, for constructing hostels or staff quarters.
- Condition of Undeveloped Land: Only units established on undeveloped land parcels are eligible. This ensures that subsidy promotes new infrastructure creation, not redevelopment of existing developed sites.
- Land Cost Exclusion: The cost of land purchase or lease is not counted in the eligible project cost for subsidy calculation. The subsidy is only applicable to construction and infrastructure expenditure.
- Complementary Capital Subsidy: In addition to infrastructure support, units can avail capital subsidy on plant and machinery (15–25%) and 10% extra if located in Bundelkhand or Poorvanchal regions.
- Energy Incentives: Units are entitled to 100% exemption from electricity duty for 10 years, and units in PM MITRA Parks receive ₹2 per unit tariff subsidy for five years (maximum ₹60 lakh per year).
- Freight and Export Reimbursement: Export-oriented units can avail freight reimbursement for transportation to ports 75% for the first two years, 50% for the next two, and 25% in the fifth year.
- Silk and Handloom Sector Support: Silk and handloom units receive 15–20% capital subsidy and 5% interest subsidy on working capital. These benefits aim to revive traditional crafts and rural employment.
Financial Assistance
Eligibility Criteria
Who can apply :
- New textile and garmenting units set up in Uttar Pradesh.
- Existing units undertaking expansion/diversification with additional investment of at least 25% of fixed capital and 25% increase in capacity.
- Units must be established on undeveloped land parcels.
Who cannot apply :
- Units set up on already developed industrial plots with existing infrastructure.
- Units in Gautam Budh Nagar district may receive lower benefits.
- Units that fail to begin production within the stipulated timeline after approval.
Documents Required
- Business registration certificate / Udyam Registration
- PAN, GST, and TAN details
- Detailed Project Report (DPR)
- Land ownership or lease documents
- Bank sanction letter for project loan
- Electricity connection and layout plan
- Employment plan and EPF registration proof
- CA-certified project cost statement
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
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Option 2: Apply via UP Industrial Development Portal
- Visit the Nivesh Mitra portal (https://niveshmitra.up.nic.in).
- Register your unit under the UP Textile and Garmenting Policy 2022.
- Upload necessary documents and DPR (Detailed Project Report).
- Submit application for subsidy under Infrastructure or Capital Support section.
- Track application status via dashboard and respond to queries from the Directorate.
Option 3: Apply Offline (Department Route)
- Obtain the application form from the Directorate of Handloom and Textiles, Lucknow.
- Submit physical documents including DPR, ownership proof, and project details.
- The department conducts field verification before subsidy release.
Power Combos with The Scheme