Uttar Pradesh · State Subsidy
Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022
- Maximum benefit
- Large units: 10–15% of capital investment over 10 years (₹5 Crore a year cap), or 100% Net SGST
- Who can apply
- Large, Mega and Ultra Mega units only (not open to MSMEs)
- Status
- Open; current term ends 3 November 2027
Is UP IIEPP 2022 open? Key facts at a glance
UP IIEPP 2022 (Uttar Pradesh): Large units: 10–15% of capital investment over 10 years (₹5 Crore a year cap), or 100% Net SGST.
Last verified: 20 Oct 2026. How we check our information
| Status | Open |
|---|---|
| Level | Uttar Pradesh State scheme |
| Type of benefit | Capital Subsidy or Net SGST Reimbursement or PLI Top-up + Stamp Duty Exemption |
| Maximum benefit | Large units: 10–15% of capital investment over 10 years (₹5 Crore a year cap), or 100% Net SGST |
| Project cost range | Large: above ₹50 Crore and below ₹200 Crore; Mega ₹200 Crore+ |
| Who can apply | Large, Mega and Ultra Mega units only (not open to MSMEs) |
| Implementing agency | Invest UP (Infrastructure & Industrial Development Department, UP) |
| Where to apply | Invest UP |
| Official notification | Read the notification (PDF) · notified 4 November 2022 |
| Current term ends | 3 November 2027 |
| Last verified | 20 Oct 2026 · How we check |
What is UP IIEPP 2022?
Uttar Pradesh’s industrial policy for large investments, notified by Government Order IID6/No-45/2022/2770/77-6-2022-2(M)/2022 dated 4 November 2022 and effective until 3 November 2027 unless amended.
It applies to new, expansion (gross block up by at least 25%) and diversification projects in manufacturing, processing, contract manufacturing and job work, by capital investment: Large above ₹50 crore and below ₹200 crore, Mega ₹200–500 crore, Super Mega ₹500–3,000 crore and Ultra-Mega ₹3,000 crore and above.
Smaller units use the MSME Promotion Policy 2022 instead.
A project makes a one-time choice between three mutually exclusive options: a capital subsidy (for Large projects 10% of eligible capital investment in Gautam Buddha Nagar and Ghaziabad, 12% elsewhere in Madhyanchal and Paschimanchal, and 15% in Bundelkhand and Purvanchal, paid over 10 years with an annual ceiling of ₹5 crore and scaled down if capacity utilisation is low), reimbursement of 100% of net SGST deposited within ceilings set as a percentage of capital investment, or a top-up of 30% of incentives received under a Government of India PLI scheme.
Stamp duty is exempt at 100% in Bundelkhand and Purvanchal, 75% in Madhyanchal and Paschimanchal and 50% in Gautam Buddha Nagar and Ghaziabad, against a bank guarantee. A project taking these incentives cannot take incentives under another State policy, apart from the export policy under a different head.
Since Government Order No. 74/2026/2224/77-6-2026-01 of 12 October 2026, related entities (joint ventures and subsidiaries in which the allottee holds at least 51% and control) may operate on land allotted under this policy and the FDI/Fortune 500 Policy 2023, through a standard lease addendum.
Official notification (PDF) · notified 4 November 2022
What are the key benefits of UP IIEPP 2022?
- Option 1 — capital subsidy for Large projects: 10% (Gautam Buddha Nagar, Ghaziabad), 12% (rest of Madhyanchal and Paschimanchal) or 15% (Bundelkhand, Purvanchal) of eligible capital investment over 10 annual instalments, annual ceiling ₹5 crore (clause 12.3.1).
- Option 2 — reimbursement of 100% of net SGST deposited, within annual and overall ceilings set as a percentage of eligible capital investment by category and region (clause 12.3.2).
- Option 3 — a top-up of 30% of incentives disbursed under a Government of India PLI scheme, capped at 100% of eligible capital investment (clause 12.3.3).
- Stamp duty exemption of 100% / 75% / 50% by region, against a bank guarantee released on commercial production (clause 12.2).
- Standalone R&D units with ₹20 crore+ investment: 25% of expenditure up to ₹10 crore; IPR registration 50% up to ₹1 crore (clause 12.5).
What could a unit get under UP IIEPP 2022?
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: Large units: 10–15% of capital investment over 10 years (₹5 Crore a year cap), or 100% Net SGST
Illustrative only: this is the scheme’s maximum, not an estimate for your unit. Source: UP Industrial Investment & Employment Promotion Policy 2022 — GO IID6/No-45/2022/2770/77-6-2022-2(M)/2022, 4 November 2022; fiscal-incentive guidelines GO of 14 April 2023 (amending orders of Nov 2023 to Nov 2024 not reviewed); related-entities GO No. 74/2026/2224/77-6-2026-01, 12 October 2026.
Who can apply for UP IIEPP 2022?
- Companies, firms, LLPs, societies, trusts, co-operatives and proprietorships in manufacturing, processing, contract manufacturing or job work; not joint- or public-sector units where Government holds 50% or more (clause 12.1.3).
- Large projects: capital investment above ₹50 crore and below ₹200 crore, made within 4 years of the cut-off date (clauses 12.1.10–12.1.11).
- Regions follow the State’s district list (IIEPP 2022 guidelines, Annexure 4): Bundelkhand is the seven districts of the Jhansi and Chitrakoot divisions; Purvanchal the 30 districts of the Ayodhya, Gorakhpur, Prayagraj, Varanasi, Mirzapur, Azamgarh, Devipatan and Basti divisions; Madhyanchal the Kanpur and Lucknow divisions; Paschimanchal the Agra, Aligarh, Moradabad, Meerut, Saharanpur and Bareilly divisions.
Eligible business types
MSME categories covered
Eligible industries
How do I apply for UP IIEPP 2022?
- Choose one incentive option when applying (one further change is allowed before the Letter of Comfort is approved).
- Apply to Invest UP, the nodal agency, for a Letter of Comfort; claim the incentives after commercial production under the 2023 guidelines.
Apply at: Invest UP
Which documents are needed for UP IIEPP 2022?
- Application on the Nivesh Mitra / Invest UP system for a Letter of Comfort
- Detailed project report with capital investment break-up
- Land documents and bank guarantee (for stamp duty exemption)
- Commercial production proof and capacity-utilisation records
- Audited accounts and GST returns (for the SGST option)
Why are UP IIEPP 2022 applications rejected?
- Capital investment of ₹50 crore or less (use the MSME policy)
- Expansion that does not raise gross block by at least 25%
- Investment outside the eligible investment period (4 years for Large projects)
- Incentive under the same head already claimed under another State policy
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.
Frequently asked questions about UP IIEPP 2022
- Is UP IIEPP 2022 open?
- Yes. The current term runs until 3 November 2027. Status last verified: 20 Oct 2026.
- Who can apply for UP IIEPP 2022?
- Large, Mega and Ultra Mega units only (not open to MSMEs).
- What is the maximum benefit under UP IIEPP 2022?
- Large units: 10–15% of capital investment over 10 years (₹5 Crore a year cap), or 100% Net SGST.
- How do I apply for UP IIEPP 2022?
- 1. Choose one incentive option when applying (one further change is allowed before the Letter of Comfort is approved). 2. Apply to Invest UP, the nodal agency, for a Letter of Comfort; claim the incentives after commercial production under the 2023 guidelines. Apply at: Invest UP.
- Until when can I apply for UP IIEPP 2022?
- The current term runs until 3 November 2027. Projects must usually be registered or commence within the term; check the cut-off before you rely on it.
Guides on UP IIEPP 2022
Related schemes
Which earlier or closed schemes are linked to UP IIEPP 2022?
These schemes are not open to new applications. Their pages stay online so you can see what changed and what replaced them.
- Uttar Pradesh Industrial Investment & Employment Promotion Policy 2017: Replaced by this scheme (superseded 4 november 2022)
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