Uttar Pradesh · State Subsidy
Uttar Pradesh Aerospace & Defence Unit and Employment Promotion Policy 2024
- Maximum benefit
- 25% capital subsidy (35% in Bundelkhand and Purvanchal) + 100% stamp duty exemption + up to ₹15 lakh a year marketing aid for MSMEs
- Who can apply
- Micro, Small, Medium enterprises, for specific activities only
- Status
- Open; current term ends 23 January 2030
Is UP Aerospace & Defence Policy 2024 open? Key facts at a glance
UP Aerospace & Defence Policy 2024 (Uttar Pradesh): 25% capital subsidy (35% in Bundelkhand and Purvanchal) + 100% stamp duty exemption + up to ₹15 lakh a year marketing aid for MSMEs.
Last verified: 26 Oct 2026. How we check our information
| Status | Open. Confirm the status before you apply (see the note on this page). |
|---|---|
| Level | Uttar Pradesh State scheme |
| Type of benefit | Capital Subsidy + Stamp Duty Exemption + Transport, Marketing and Certification Support |
| Maximum benefit | 25% capital subsidy (35% in Bundelkhand and Purvanchal) + 100% stamp duty exemption + up to ₹15 lakh a year marketing aid for MSMEs |
| Project cost range | MSME units as defined under the MSMED Act; separate Anchor (₹200–1,000 Crore) and Mega Anchor (₹1,000 Crore+) tiers |
| Who can apply | Micro, Small, Medium enterprises (Manufacturing). Only for: Only for aerospace and defence manufacturing units: an MSME qualifies if at least 50% of its turnover comes from manufacturing and it supplies within the A&D value chain to Anchor, Mega Anchor or Vendor A&D units or Defence PSUs; MSMEs and startups entering the sector for the first time are also considered. |
| Implementing agency | Department of Infrastructure & Industrial Development, UP (UPEIDA: nodal agency for disbursement) |
| Where to apply | Invest UP |
| Official notification | Read the notification (PDF) · notified 24 January 2025 |
| Current term ends | 23 January 2030 |
| Last verified | 26 Oct 2026 · How we check |
What is UP Aerospace & Defence Policy 2024?
The State policy for aerospace and defence manufacturing, notified on 24 January 2025 (No. 04/2025/192/77-6-2025-LC 03/2018) for five years or until a new policy, superseding the 2018 policy as amended.
MSME units supplying the A&D value chain (at least 50% of turnover from manufacturing) are eligible alongside Anchor and Mega Anchor units, vendors, startups and MRO entities.
A&D manufacturing units get a back-ended capital subsidy of 25% in Paschimanchal and Madhyanchal and 35% in Bundelkhand and Poorvanchal, paid in equal annual instalments (over five years for subsidies up to ₹500 crore), with imported second-hand machinery counted up to 40%; MSMEs have four years from the cut-off date to invest.
Units also get 100% stamp duty exemption against a bank guarantee, 50% of transport costs for imported plant and machinery (up to ₹5 crore) and for finished goods for five years (up to ₹5 crore a year), 25% of green infrastructure cost up to ₹1 crore, and 2% more on all subsidies for women entrepreneurs.
MSMEs and startups get marketing assistance for five years (up to ₹15 lakh for one international and ₹5 lakh for one national event a year) and 100% of quality certification fees such as AS 9100 or NADCAP, up to ₹1 lakh a year.
The approval procedure is the one under the Industrial Investment & Employment Promotion Policy 2022, and UPEIDA disburses incentives.
Official notification (PDF) · notified 24 January 2025
What are the key benefits of UP Aerospace & Defence Policy 2024?
- Capital subsidy (back-ended): 25% in Paschimanchal and Madhyanchal, 35% in Bundelkhand and Poorvanchal; paid in equal annual instalments over 5 years (subsidy up to ₹500 crore), 10 years (₹500–1,000 crore) or 15 years (above ₹1,000 crore); imported second-hand machinery counted up to 40% (cl. 9.1).
- 100% stamp duty exemption on land purchase or lease deeds, against a bank guarantee (cl. 9(b)(ii)).
- Transport: 50% of the cost of moving imported plant and machinery to the unit, up to ₹5 crore; 50% of finished-goods transport to logistics hubs and ports for five years, up to ₹5 crore a year (cl. 9.2).
- Green infrastructure: 25% of cost, up to ₹1 crore (cl. 9.3); women entrepreneurs: 2% more on all applicable subsidies (cl. 9.5).
- MSMEs and startups: marketing assistance for five years — up to ₹15 lakh for one international and ₹5 lakh for one national event a year (cl. 9.6); 100% of quality certification fees (AS 9100, NADCAP etc.) up to ₹1 lakh a year (cl. 9.7(ii)).
- Patents: 100% (domestic) and 50% (international) of filing fees, up to ₹25 lakh a unit, after grant; trademark fee 100% up to ₹1 lakh a year (cl. 9.7(i), (iii)); training cost for up to 20 persons at up to ₹10,000 a person a month for one year (cl. 9.8(ii)).
What could a unit get under UP Aerospace & Defence Policy 2024?
The ceiling the scheme sets. What a particular unit receives depends on its project cost, location and the conditions on this page, so no rupee figure is worked out here.
Up to the scheme’s limits: 25% capital subsidy (35% in Bundelkhand and Purvanchal) + 100% stamp duty exemption + up to ₹15 lakh a year marketing aid for MSMEs
Illustrative only: this is the scheme’s maximum, not an estimate for your unit. Source: Uttar Pradesh Aerospace & Defence Unit and Employment Promotion Policy 2024 — notification No. 04/2025/192/77-6-2025-एल.सी. 03/2018, 24 January 2025 (Industrial Development Section-6); English text on Invest UP (uploaded 19 May 2026).
Who can apply for UP Aerospace & Defence Policy 2024?
- A&D manufacturing units across the State: MSME units as defined under the MSMED Act that derive at least 50% of turnover from manufacturing and supply within the A&D value chain, or MSMEs and startups entering the sector for the first time (cl. 8.2, 8.6).
- Investment must start after the effective date (or within five years before it, with at least 80% invested after it); MSMEs, vendors and startups have four years from the cut-off date (cl. 9.1(a)–(b)).
- Applies to investors who invest after the effective date and obtain a Letter of Comfort or confirmed allotment under the policy (cl. 11(ii)).
Eligible business types
MSME categories covered
Eligible industries
How do I apply for UP Aerospace & Defence Policy 2024?
- Apply under the same procedure as the Industrial Investment & Employment Promotion Policy 2022 (through Invest UP) and obtain a Letter of Comfort or confirmed allotment (cl. 10(vii), 11(ii)).
- UPEIDA is the nodal agency for disbursing the incentives (cl. 10(ii)).
Apply at: Invest UP
Which documents are needed for UP Aerospace & Defence Policy 2024?
- Detailed project report (showing any phases of implementation)
- Proof of A&D supply (orders or grants from A&D units or Defence PSUs) and turnover statement
- Bank guarantee equal to the stamp duty (for the stamp duty exemption)
- Transport bills (for the transport subsidy)
- Certification, patent or trademark fee receipts
Why are UP Aerospace & Defence Policy 2024 applications rejected?
- Unit not in the A&D value chain, or less than 50% of turnover from manufacturing (MSMEs)
- Investment outside the four-year eligible investment period
- Phases not shown in the DPR or not completed in time
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.
Frequently asked questions about UP Aerospace & Defence Policy 2024
- Is UP Aerospace & Defence Policy 2024 open?
- It is listed as open, but confirm the status before you apply: Invest UP lists this policy as the "First Amendment" and holds an English text uploaded on 19 May 2026, but no amending order was found as of 26 October 2026; the figures here are from that English text of the policy notified on 24 January 2025. Confirm with our expert team. Status last verified: 26 Oct 2026.
- Who can apply for UP Aerospace & Defence Policy 2024?
- Micro, Small, Medium enterprises (Manufacturing). Only for: Only for aerospace and defence manufacturing units: an MSME qualifies if at least 50% of its turnover comes from manufacturing and it supplies within the A&D value chain to Anchor, Mega Anchor or Vendor A&D units or Defence PSUs; MSMEs and startups entering the sector for the first time are also considered.
- What is the maximum benefit under UP Aerospace & Defence Policy 2024?
- 25% capital subsidy (35% in Bundelkhand and Purvanchal) + 100% stamp duty exemption + up to ₹15 lakh a year marketing aid for MSMEs.
- How do I apply for UP Aerospace & Defence Policy 2024?
- 1. Apply under the same procedure as the Industrial Investment & Employment Promotion Policy 2022 (through Invest UP) and obtain a Letter of Comfort or confirmed allotment (cl. 10(vii), 11(ii)). 2. UPEIDA is the nodal agency for disbursing the incentives (cl. 10(ii)). Apply at: Invest UP.
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