Uttar Pradesh Electronics Manufacturing Policy – Provision of Land
The Uttar Pradesh Electronics Manufacturing Policy 2020 is implemented by the Government of Uttar Pradesh through its Department of IT & Electronics and the nodal agency U.P. Electronics Corporation Ltd. (UPELC). The purpose of this policy is to develop Uttar Pradesh as a preferred destination for Electronics System Design & Manufacturing (ESDM) by offering favourable infrastructure, investment incentives and regional development focus. Your business, as an MSME or start-up in electronics manufacturing or design, can benefit from the “Provision of Land” component which reduces land cost and promotes campus-scale manufacturing in approved regions of the state.
Key Features
- Land Subsidy 25% (Madhyanchal & Paschimanchal): If you establish your unit in these regions and purchase land from a designated state agency, you are eligible for a subsidy equal to 25% of the prevailing sector land rate. For example, if the sector rate is ₹1 crore/acre and you purchase 10 acres in Madhyanchal, the “subsidy equivalent” is ₹2.5 crore (i.e., 25% of ₹10 crore). This helps reduce your land acquisition cost and improves project viability.
- Land Subsidy 50% (Bundelkhand & Purvanchal): For units locating in the more backward regions of Bundelkhand and Purvanchal, the subsidy is higher 50% of prevailing sector land rate. For instance, the same 10 acres at ₹1 crore/acre would attract a subsidy of ₹5 crore. This preferential treatment encourages regional investment in less-developed areas.
- Cap on Subsidy (7.5% of Project Cost or ₹ 75 crore): Irrespective of the above percentages, the land subsidy amount is capped at the lower of (a) 7.5% of your total project cost, or (b) ₹ 75 crore. Suppose your total project cost is ₹500 crore, 7.5% is ₹37.5 crore so the maximum subsidy under land category will be ₹37.5 crore (if other conditions match). This ensures proportionality and budget control.
- Exclusion of Land Cost from FCI Calculation: When calculating your Fixed Capital Investment (FCI) for other incentives (like capital subsidy), land cost is not included. This means that while you get land subsidy separately, the cost of land does not increase your FCI base for other benefits. This distinction ensures clarity in benefit structure.
- Floor Area Ratio (FAR) 3.0 + 1.0 (Purchasable): Your manufacturing unit will be allowed a built-up density of up to FAR 3.0 by default, and you may purchase additional FAR up to 1.0 (total possible FAR 4.0). This higher FAR enables more built-up space, improving land utilisation and making large-scale manufacturing feasible on limited land area.
- Welfare Facility Up-to 30% of FAR in Minimum 25 Acre Site: If your site is at least 25 acres under “Industrial land use”, you can allocate up to 30% of your total FAR for welfare facilities such as worker dormitories, canteen, dispensary etc. For example, on a 25-acre site with built-up area permitted, say 1 lakh sq.ft, you may allocate up to 30,000 sq.ft for welfare facilities. This supports workforce accommodation and comfort, making your campus more attractive.
Financial Assistance
Eligibility Criteria
Who Can Apply:
- Both individual ESDM units and parks (EMC/ESDM Parks) that purchase land from state agencies in Uttar Pradesh under the policy.
- Units located in all districts (pan-state policy) but with enhanced subsidy in Bundelkhand/Purvanchal regions.
Who Cannot Apply:
- Units purchasing land outside state-agency channels or not meeting policy registration.
- Projects that do not utilise the land or commence production/commercialisation (since subsidy paid post commercialisation).
- Units that have already availed subsidy via another scheme for the same land benefit (check policy overlap).
Documents Required
- Registration/approval certificate of unit or park under the UP Electronics Manufacturing Policy 2020.
- Land purchase/lease deed from state agency (with appraised prevailing sector rate) indicating region.
- Region classification proof (Madhyanchal, Paschimanchal, Bundelkhand, Purvanchal).
- Project cost statement and land utilisation plan indicating area utilised in phases.
- Commercial production commencement certificate for unit/park.
- Bank details and state authority details for subsidy disbursement.
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
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Option 2: Government Portal Route
- Register your ESDM unit / park under the UP Electronics Manufacturing Policy 2020 via the state nodal portal (Invest UP / Nivesh Mitra).
- Submit application for land provision benefits indicating region (Madhyanchal, Paschimanchal, Bundelkhand or Purvanchal) and land purchase details from state agency.
- After commercial production is achieved, the subsidy is disbursed proportionately by the State Government to the authority concerned (SPV/PIA) as per utilized land area.
Option 3: Offline Submission / Hybrid Route
- Obtain forms from the nodal agency (UPELC/Department of IT & Electronics) or district industry office.
- Attach proof of land purchase, unit registration, region classification, and utilisation plan.
- Submit to nodal agency and track approval; subsidy release follows compliance.
Power Combos with The Scheme