- Maximum benefit
- 10–25% capital subsidy up to ₹4 Crore; micro units also 50% interest subsidy up to ₹25 lakh
- Who can apply
- Micro, Small, Medium enterprises
- Status
- Open; current term ends 27 September 2027
Is UP MSME Policy 2022 open? Key facts at a glance
UP MSME Policy 2022 (Uttar Pradesh): 10–25% capital subsidy up to ₹4 Crore; micro units also 50% interest subsidy up to ₹25 lakh.
Last verified: 26 Oct 2026. How we check our information
| Status | Open |
|---|---|
| Level | Uttar Pradesh State scheme |
| Type of benefit | Capital Subsidy + Interest Subsidy + Stamp Duty Exemption + EPF Reimbursement |
| Maximum benefit | 10–25% capital subsidy up to ₹4 Crore; micro units also 50% interest subsidy up to ₹25 lakh |
| Project cost range | Any MSME (land counted up to 10% of fixed capital investment) |
| Who can apply | Micro, Small, Medium enterprises (Manufacturing) |
| Implementing agency | Department of MSME & Export Promotion, UP (Directorate of Industries & Enterprise Promotion; District Industries & Enterprise Promotion Centres) |
| Where to apply | Nivesh Mitra |
| Official notification | Read the notification (PDF) · notified 28 September 2022 |
| Current term ends | 27 September 2027 |
| Last verified | 26 Oct 2026 · How we check |
What is UP MSME Policy 2022?
Uttar Pradesh’s main incentive policy for micro, small and medium enterprises, notified by Government Order dated 28 September 2022 and in force for five years from then or until a new policy is issued. Unlike the earlier policy, its incentives are not linked to SGST paid.
New MSMEs get an Investment Promotion Assistance (capital subsidy) on plant, machinery, equipment and related building — 25%, 20% or 15% for micro, small or medium units in Bundelkhand and Purvanchal, and 20%, 15% or 10% in Madhyanchal and Paschimanchal, plus 2 percentage points for SC/ST and women entrepreneurs, up to ₹4 crore a unit, paid in two equal instalments.
New micro units also get 50% of the interest on their loan (60% for SC/ST and women entrepreneurs) for five years, up to ₹25 lakh. Other incentives cover stamp duty, the employer’s EPF share, the CGTMSE guarantee fee, quality certification, patents and GI, ERP/ICT and green measures.
The policy covers manufacturing units and manufacturing-related services only (such as CETPs, common facility centres and R&D); existing units expanding or diversifying (raising gross block and capacity by at least 25%) can get the same facilities on conditions.
Total support is capped at the unit’s fixed capital investment, and an enterprise can take a benefit under only one State policy.
The Toy Manufacturing Promotion Policy 2025 (approved by the Cabinet on 15 September 2026) and the Leather & Footwear Policy 2025 both send MSME units to this policy’s incentives; their own incentives are for larger units.
Official notification (PDF) · notified 28 September 2022
What are the key benefits of UP MSME Policy 2022?
- Capital subsidy (Investment Promotion Assistance) for new units: Bundelkhand and Purvanchal 25% / 20% / 15% for micro / small / medium; Madhyanchal and Paschimanchal 20% / 15% / 10%; +2% for SC/ST and women entrepreneurs; up to ₹4 crore a unit; not paid on land (clause 5.3.4).
- Interest subsidy for new micro units: 50% of the interest (60% for SC/ST and women entrepreneurs), paid yearly after the interest is paid in full, up to ₹25 lakh over five years (clause 5.3.5).
- Stamp duty exemption: 100% in Purvanchal and Bundelkhand, 75% in Madhyanchal and Paschimanchal, 50% in Gautam Buddha Nagar and Ghaziabad, and 100% anywhere for women entrepreneurs (clause 5.3.3).
- 100% of the employer’s EPF share for five years from the start of production, for new MSMEs (clause 5.4.1).
- The State pays the one-time CGTMSE guarantee fee on collateral-free loans up to ₹2 crore (clause 5.3.2); 20% of the cost of raising equity on a stock exchange, up to ₹5 lakh (clause 5.3.6).
- Quality: certification (ZED, WHO-GMP, BIS-recognised and similar) and testing labs reimbursed at 75% / 50% / 25% for micro / small / medium, up to ₹5 lakh each; patents and GI 75% up to ₹10 lakh; ERP 75% up to ₹1 lakh and ICT 75% up to ₹5 lakh (clauses 5.5.3–5.5.6).
- Green: 50% of equipment cost up to ₹75 lakh for zero liquid discharge; 40% up to ₹20 lakh for clean-production plant and machinery; 75% of energy/water audit fees up to ₹50,000 and 50% of recommended equipment up to ₹20 lakh (clauses 5.9.2–5.9.5).
What could a unit get under UP MSME Policy 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: 10–25% capital subsidy up to ₹4 Crore; micro units also 50% interest subsidy up to ₹25 lakh
Illustrative only: this is the scheme’s maximum, not an estimate for your unit. Source: Uttar Pradesh MSME Promotion Policy 2022 — Government Order dated 28 September 2022 (official English translation; the Hindi order prevails).
Who can apply for UP MSME Policy 2022?
- MSMEs as defined under the MSMED Act as amended from time to time, in manufacturing or manufacturing-related services (clause 4).
- Only investment made during the policy’s term counts; the eligible investment period is 2 years for micro, 3 for small and 4 for medium enterprises from the date of application, and production must start within it (clause 7.3).
- SC/ST or women units are those owned by, or with at least 51% of share capital held by, entrepreneurs of that category (clause 5.3.5.3).
- 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 MSME Policy 2022?
- Apply online on Nivesh Mitra (Apply for Incentives, Micro, Small and Medium Enterprises), where the State MSME 1-Connect portal now sends applicants; the application goes to the Deputy Commissioner (Industries) of your district, at the District Industries & Enterprise Promotion Centre (clause 6.2).
- The Deputy Commissioner evaluates it and forwards it to the divisional committee chaired by the Joint Commissioner (Industries), which approves claims; a State-level committee evaluates the financial claims (clauses 6.2–6.3).
Apply at: Nivesh Mitra
Which documents are needed for UP MSME Policy 2022?
- Udyam Registration
- Detailed project report with fixed capital investment break-up
- Land deed or allotment letter (land counted up to 10% of fixed capital investment)
- Bank sanction letter and loan statements (for the interest subsidy)
- Commercial production proof
- EPF registration and challans (for EPF reimbursement)
- SC/ST or women-ownership proof (51% shareholding) for the higher rates
Can UP MSME Policy 2022 be combined with other schemes?
This scheme can be combined with the following for higher total benefits:
Why are UP MSME Policy 2022 applications rejected?
- Product on the excluded list (tobacco, gutkha and pan masala; alcohol and aerated drinks; firecrackers; thin plastic carry bags)
- Investment made before the policy or outside the eligible investment period (2 / 3 / 4 years for micro / small / medium)
- Commercial production not started within the eligible investment period
- Same incentive already claimed under another State policy
- Interest subsidy claimed by a small or medium unit (micro only)
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.
Frequently asked questions about UP MSME Policy 2022
- Is UP MSME Policy 2022 open?
- Yes. The current term runs until 27 September 2027. Status last verified: 26 Oct 2026.
- Who can apply for UP MSME Policy 2022?
- Micro, Small, Medium enterprises (Manufacturing).
- What is the maximum benefit under UP MSME Policy 2022?
- 10–25% capital subsidy up to ₹4 Crore; micro units also 50% interest subsidy up to ₹25 lakh.
- How do I apply for UP MSME Policy 2022?
- 1. Apply online on Nivesh Mitra (Apply for Incentives, Micro, Small and Medium Enterprises), where the State MSME 1-Connect portal now sends applicants; the application goes to the Deputy Commissioner (Industries) of your district, at the District Industries & Enterprise Promotion Centre (clause 6.2). 2. The Deputy Commissioner evaluates it and forwards it to the divisional committee chaired by the Joint Commissioner (Industries), which approves claims; a State-level committee evaluates the financial claims (clauses 6.2–6.3). Apply at: Nivesh Mitra.
- Until when can I apply for UP MSME Policy 2022?
- The current term runs until 27 September 2027. Projects must usually be registered or commence within the term; check the cut-off before you rely on it.
Guides on UP MSME Policy 2022
Related schemes
Which earlier or closed schemes are linked to UP MSME Policy 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: Superseded 4 November 2022; this scheme took over part of it
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