Uttar Pradesh · Technology Upgradation
Uttar Pradesh Micro & Small Industries Technology Upgradation Scheme
- Maximum benefit
- 50% of the cost of new-technology machines, up to ₹5 lakh; interest subsidy up to ₹1 lakh a year for 5 years
- Who can apply
- Micro, Small enterprises, for specific activities only
- Status
- Open; current term ends 30 September 2029
Is UP Technology Upgradation Scheme open? Key facts at a glance
UP Technology Upgradation Scheme (Uttar Pradesh): 50% of the cost of new-technology machines, up to ₹5 lakh; interest subsidy up to ₹1 lakh a year for 5 years.
Last verified: 20 Oct 2026. How we check our information
| Status | Open |
|---|---|
| Level | Uttar Pradesh State scheme |
| Type of benefit | Capital Subsidy + Interest Subsidy + Certification Reimbursement |
| Maximum benefit | 50% of the cost of new-technology machines, up to ₹5 lakh; interest subsidy up to ₹1 lakh a year for 5 years |
| Project cost range | Existing micro and small manufacturing units (3 years or more) |
| Who can apply | Micro, Small enterprises (Manufacturing). Only for: Only for micro and small manufacturing units operating for at least 3 years. |
| Implementing agency | Department of MSME & Export Promotion, UP (Directorate of Industries & Enterprise Promotion; District Industries & Enterprise Promotion Centres) |
| Where to apply | Directorate of Industries UP portal |
| Official notification | Read the notification (PDF) · notified 15 February 2019 |
| Current term ends | 30 September 2029 |
| Last verified | 20 Oct 2026 · How we check |
What is UP Technology Upgradation Scheme?
A Directorate of Industries scheme that helps existing micro and small manufacturers upgrade their technology.
It was notified by Government Order No. 2/2019/093/18-2-2019-30(26)/2003 of 15 February 2019 and continued with amendments by Government Order No. 45/2024/1607/18-2-2024-30(26)/2003 of 1 October 2024 for the next five years or until further orders.
The main benefit is a capital subsidy of 50% of the cost of new-technology machines, up to ₹5 lakh, on plant and machinery only (not civil works).
Units can also get an interest subsidy for five years, up to ₹1 lakh a year (the rate is to be confirmed with our expert team, as official pages differ), reimbursement of voluntary quality-mark and certification costs, half of the fees of recognised consultancy institutions, a branding incentive, and, in the NCR only, a grant to convert or replace generators to CAQM norms.
Units must have been operating for at least three years; new units and expansion do not qualify, the same work cannot be aided under another scheme, and the grant is recovered if the unit closes within five years.
The 2024 order itself is not online; these terms come from the Directorate of Industries’ summary of it and the 2019 order.
Official notification (PDF) · notified 15 February 2019
What are the key benefits of UP Technology Upgradation Scheme?
- Capital subsidy of 50% of the cost of new-technology machines, up to ₹5 lakh, on plant and machinery only, not civil works (2019 GO clause 3.1).
- Interest subsidy for five years, up to ₹1 lakh a year (clause 3.2). The rate is to be confirmed with our expert team: the Directorate’s summary of the 2024 order gives 5% a year, the 2019 order gave 50% of the interest, and the 2024 order itself is not online.
- Voluntary quality marks and certification (ISI, hallmarking, BIS, Agmark, AYUSH and similar): 75% for micro and 50% for small units, up to ₹2 lakh (clause 3.3).
- Consultancy from recognised institutions: 50%, up to ₹1 lakh (clause 3.5).
- Branding: 1% of that year’s sales, up to ₹1 lakh, after three years of selling under the brand with at least 50% of output (clause 3.6).
- NCR units only: grant to convert or replace generators to CAQM norms — micro units 50% / 40% / 25% capped at ₹5 lakh / ₹10 lakh / ₹20 lakh for costs of up to ₹10 lakh / ₹10–40 lakh / ₹40 lakh and above; small units 40% / 30% / 20% with the same caps.
What could a unit get under UP Technology Upgradation Scheme?
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: 50% of the cost of new-technology machines, up to ₹5 lakh; interest subsidy up to ₹1 lakh a year for 5 years
Illustrative only: this is the scheme’s maximum, not an estimate for your unit. Source: UP Micro & Small Industries Technology Upgradation Scheme — GO No. 2/2019/093/18-2-2019-30(26)/2003, 15 February 2019; continued by GO No. 45/2024/1607/18-2-2024-30(26)/2003, 1 October 2024 (not online; the Directorate of Industries’ summary was read).
Who can apply for UP Technology Upgradation Scheme?
- Micro and small manufacturing units that have operated for at least three years; new units are not eligible and expansion does not count as upgradation (2019 GO clauses 3.2 and 4.4).
- Not available if the same work was aided under another State or Central scheme; a self-declaration is required (clause 4.8).
- The grant is recovered if the unit closes within five years (clause 4.2). An overall cap across the heads may apply; confirm it with our expert team.
Eligible business types
MSME categories covered
Eligible industries
How do I apply for UP Technology Upgradation Scheme?
- Register and apply online on the Directorate of Industries portal (msme.up.gov.in), uploading scanned documents and a notarised affidavit.
- The district technical committee chaired by the Deputy Commissioner (Industries) examines the application, and the State steering committee approves it on a first-come-first-served basis (2019 GO clauses 6.1–6.3).
Apply at: Directorate of Industries UP portal
Which documents are needed for UP Technology Upgradation Scheme?
- Udyam Registration
- Proof of at least three years of operation
- Machine quotations and invoices
- Loan sanction letter (for the interest subsidy)
- Certification invoices (for the certification reimbursement)
- Notarised affidavit (including a self-declaration that the work is not aided under another scheme)
Why are UP Technology Upgradation Scheme applications rejected?
- Unit operating for less than three years, or a new unit
- Expansion claimed as technology upgradation
- Same work already aided under another Central or State scheme
- Civil works counted in the machine cost
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.
Frequently asked questions about UP Technology Upgradation Scheme
- Is UP Technology Upgradation Scheme open?
- Yes. The current term runs until 30 September 2029. Status last verified: 20 Oct 2026.
- Who can apply for UP Technology Upgradation Scheme?
- Micro, Small enterprises (Manufacturing). Only for: Only for micro and small manufacturing units operating for at least 3 years.
- What is the maximum benefit under UP Technology Upgradation Scheme?
- 50% of the cost of new-technology machines, up to ₹5 lakh; interest subsidy up to ₹1 lakh a year for 5 years.
- How do I apply for UP Technology Upgradation Scheme?
- 1. Register and apply online on the Directorate of Industries portal (msme.up.gov.in), uploading scanned documents and a notarised affidavit. 2. The district technical committee chaired by the Deputy Commissioner (Industries) examines the application, and the State steering committee approves it on a first-come-first-served basis (2019 GO clauses 6.1–6.3). Apply at: Directorate of Industries UP portal.
- Until when can I apply for UP Technology Upgradation Scheme?
- The current term runs until 30 September 2029. Projects must usually be registered or commence within the term; check the cut-off before you rely on it.
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