Uttar Pradesh · State Subsidy
Uttar Pradesh Pharmaceutical and Medical Device Industry Policy 2023
- Maximum benefit
- 15% capital subsidy on plant & machinery (up to ₹200 Crore) + 5% interest subsidy up to ₹1 Crore a year
- Who can apply
- Micro, Small, Medium enterprises, for specific activities only
- Status
- Open; current term ends 7 June 2028
Is UP Pharma Policy 2023 open? Key facts at a glance
UP Pharma Policy 2023 (Uttar Pradesh): 15% capital subsidy on plant & machinery (up to ₹200 Crore) + 5% interest subsidy up to ₹1 Crore a year.
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 + Interest Subsidy + Stamp Duty & Electricity Duty Exemption |
| Maximum benefit | 15% capital subsidy on plant & machinery (up to ₹200 Crore) + 5% interest subsidy up to ₹1 Crore a year |
| Project cost range | MSME, Large (above MSME, below ₹100 Crore) and Mega (above ₹100 Crore) units |
| Who can apply | Micro, Small, Medium enterprises (Manufacturing). Only for: Only for new pharmaceutical and medical device manufacturing units, and existing units that raise their gross block and production capacity by at least 25% through new investment. |
| Implementing agency | Food Safety & Drug Administration Department, UP (nodal); Policy Implementation Unit under the Infrastructure & Industrial Development Commissioner |
| Official notification | Read the notification (PDF) · notified 4 August 2023 |
| Current term ends | 7 June 2028 |
| Last verified | 26 Oct 2026 · How we check |
What is UP Pharma Policy 2023?
The State policy for pharmaceutical and medical device manufacturing, notified by notification No. 71/2023/1414/अट्ठासी-23-01औ0/2023 of 4 August 2023 and in force from 8 June 2023 for five years. MSME units (as defined under the MSMED Act), Large units (up to ₹100 crore) and Mega units are covered.
New units get a capital subsidy of 15% of investment in plant and machinery, up to ₹200 crore, paid in instalments over five years after production starts; a 5% a year interest subsidy for five years on plant and machinery loans, up to ₹1 crore a year (2% a year more for seven years in Bundelkhand and Purvanchal); a 5% interest subsidy on loans for self-use infrastructure, up to ₹1 crore; 100% electricity duty exemption for ten years; and 100% stamp duty exemption on land and buildings against a bank guarantee.
Further support covers zero-waste infrastructure (50% of interest for five years, up to ₹10 lakh), common boilers set up by at least ten MSMEs (35% or 50%, up to ₹2 crore), patents (100% up to ₹1.5 lakh domestic, 50% up to ₹25 lakh international), ISO (75% up to ₹75,000 a year) and BIS (50% up to ₹20,000 a year) certification, apprenticeship stipends, and international fairs for MSMEs (50% up to ₹5 lakh, once a year).
Existing units expanding gross block and capacity by at least 25% are treated as new. Total incentives are capped at 100% of fixed capital investment for MSME and Large units.
Official notification (PDF) · notified 4 August 2023
What are the key benefits of UP Pharma Policy 2023?
- Capital subsidy: 15% of investment in plant and machinery, up to ₹200 crore, in instalments over five years, the first after commercial production (para 7.6).
- Capital interest subsidy: 5% a year for five years on plant and machinery loans, up to ₹1 crore a year; a further 2% a year for seven years in Bundelkhand and Purvanchal (para 7.1).
- Infrastructure interest subsidy: 5% a year for up to five years on loans for self-use infrastructure such as sewage, drainage, power lines and feeders, up to ₹1 crore (para 7.2); industrial research: 50% of interest for five years on loans for testing and quality labs, overall ceiling ₹2 crore (para 7.3).
- 100% electricity duty exemption for ten years for all new units (para 7.4); 100% stamp duty exemption on purchase or lease of land, shed or building, against a bank guarantee released on commercial production (para 7.5).
- Environment: zero-waste infrastructure 50% of annual interest for five years, up to ₹10 lakh (para 8.2); common boiler adopted by at least ten MSMEs 35% (solid fuel) or 50% (clean fuel), up to ₹2 crore (para 8.3).
- Patents: 100% of filing cost up to ₹1.5 lakh (domestic) and 50% up to ₹25 lakh (international) on awarded patents (para 10.1); ISO certification 75% up to ₹75,000 and BIS 50% up to ₹20,000 a year (para 10.2).
- MSME units: 50% of the cost of taking part in international exhibitions (excluding travel and stay), up to ₹5 lakh, once a year (para 12.1); apprenticeship stipend under NAPS/CMAPS for up to 10 trainees a year for six months (para 9.6.1).
What could a unit get under UP Pharma Policy 2023?
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: 15% capital subsidy on plant & machinery (up to ₹200 Crore) + 5% interest subsidy up to ₹1 Crore a year
Illustrative only: this is the scheme’s maximum, not an estimate for your unit. Source: Uttar Pradesh Pharmaceutical and Medical Device Industry Policy 2023 — notification No. 71/2023/1414/अट्ठासी-23-01औ0/2023, 4 August 2023 (Hindi and English text in one scanned file on Invest UP, read page by page).
Who can apply for UP Pharma Policy 2023?
- New pharmaceutical and medical device units; MSME units as defined under the MSMED Act, Large units with investment above MSME and below ₹100 crore, and Mega units above ₹100 crore (para 4.3).
- Existing units qualify as new where gross block rises by at least 25% and production capacity by 25% through new capital investment (para 7.9).
- All incentives together are capped at 100% of fixed capital investment for MSME and Large units (200% for Mega units) (Note A–B under para 12).
Eligible business types
MSME categories covered
Eligible industries
How do I apply for UP Pharma Policy 2023?
- Submit the project dossier and building plan to the Food Safety & Drug Administration team for pre-consultation; a Letter of Comfort is issued after scrutiny (para 13.4).
- Applications from micro, small, medium and large units are approved by the Policy Implementation Unit under the Infrastructure & Industrial Development Commissioner (para 14.2). No guidelines or online form were found on Invest UP as of 26 October 2026; confirm the route with our expert team.
Which documents are needed for UP Pharma Policy 2023?
- Project dossier and building plan (for pre-consultation by the FSDA team)
- Bank guarantee equal to the stamp duty (for the stamp duty exemption)
- Loan sanction letter and interest statements (for the interest subsidies)
- State Pollution Control Board certificate (for the environment protection subsidies)
- Proof of commercial production
Why are UP Pharma Policy 2023 applications rejected?
- Incentives above 100% of fixed capital investment (MSME and Large units)
- Expansion below a 25% increase in gross block and production capacity
- Same incentive head claimed under another State policy (MSME Policy 2022, clause 7.3)
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.
Frequently asked questions about UP Pharma Policy 2023
- Is UP Pharma Policy 2023 open?
- It is listed as open, but confirm the status before you apply: No operational guidelines or application portal for this policy were found on Invest UP as of 26 October 2026; the policy says MSME applications are approved by a Policy Implementation Unit under the Infrastructure & Industrial Development Commissioner. Confirm the application route with our expert team before applying. Status last verified: 26 Oct 2026.
- Who can apply for UP Pharma Policy 2023?
- Micro, Small, Medium enterprises (Manufacturing). Only for: Only for new pharmaceutical and medical device manufacturing units, and existing units that raise their gross block and production capacity by at least 25% through new investment.
- What is the maximum benefit under UP Pharma Policy 2023?
- 15% capital subsidy on plant & machinery (up to ₹200 Crore) + 5% interest subsidy up to ₹1 Crore a year.
- How do I apply for UP Pharma Policy 2023?
- 1. Submit the project dossier and building plan to the Food Safety & Drug Administration team for pre-consultation; a Letter of Comfort is issued after scrutiny (para 13.4). 2. Applications from micro, small, medium and large units are approved by the Policy Implementation Unit under the Infrastructure & Industrial Development Commissioner (para 14.2). No guidelines or online form were found on Invest UP as of 26 October 2026; confirm the route with our expert team.
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