Uttar Pradesh · State Subsidy
Uttar Pradesh Textile and Garmenting Policy 2022
- Maximum benefit
- 15–25% capital subsidy on plant & machinery (+10% in Purvanchal/Bundelkhand); 60% interest subsidy for 7 years
- Who can apply
- Micro, Small, Medium enterprises
- Status
- Open; current term ends 16 October 2027
Is UP Textile Policy 2022 open? Key facts at a glance
UP Textile Policy 2022 (Uttar Pradesh): 15–25% capital subsidy on plant & machinery (+10% in Purvanchal/Bundelkhand); 60% interest subsidy for 7 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 + Stamp Duty & Electricity Duty Exemption |
| Maximum benefit | 15–25% capital subsidy on plant & machinery (+10% in Purvanchal/Bundelkhand); 60% interest subsidy for 7 years |
| Project cost range | Any; capital subsidy caps from ₹1 Crore (P&M up to ₹10 Crore) to ₹100 Crore |
| Who can apply | Micro, Small, Medium enterprises (Manufacturing) |
| Implementing agency | Department of Handloom and Textiles, UP |
| Official notification | Read the notification (PDF) · notified 17 October 2022 |
| Current term ends | 16 October 2027 |
| Last verified | 20 Oct 2026 · How we check |
What is UP Textile Policy 2022?
Notified by the Government of Uttar Pradesh on 17 October 2022 for five years (or until amended or superseded), for new textile and garmenting units and expansions.
The capital subsidy is set by both plant and machinery investment and jobs, using whichever gives the lower level: units with plant and machinery up to ₹10 crore and fewer than 50 jobs get 15%, up to ₹1 crore; with 50 or more jobs, 25% up to ₹2 crore, and larger tiers rise to ₹100 crore; units in Purvanchal and Bundelkhand get a further 10% (except at the lowest tier).
Units also get 60% of the annual interest on loans for TUFS/ATUFS-eligible plant and machinery for up to seven years (up to ₹1.5 crore a year; ₹75 lakh in Gautam Buddha Nagar), a 25% land-cost subsidy on government industrial land, 100% stamp duty exemption (75% in Gautam Buddha Nagar), 100% electricity duty exemption for ten years for new units, and infrastructure subsidies for ETPs, roads and power on undeveloped land.
A unit cannot take an incentive under the same head from another State policy.
Official notification (PDF) · notified 17 October 2022
What are the key benefits of UP Textile Policy 2022?
- Capital subsidy on plant & machinery: 15% up to ₹1 crore (P&M up to ₹10 crore, under 50 jobs); 25% from 50 jobs, with caps of ₹2 crore, ₹10 crore, ₹20 crore, ₹40 crore and ₹100 crore by tier; +10% in Purvanchal and Bundelkhand (clause 4.3).
- Interest subsidy: 60% of annual interest on loans for TUFS/ATUFS-eligible plant & machinery for up to seven years, up to ₹1.5 crore a year (₹75 lakh in Gautam Buddha Nagar) (clause 4.5).
- Land cost subsidy of 25% on land bought from government agencies (15% in Gautam Buddha Nagar), limited to 10% of project cost (clause 4.1).
- Stamp duty: 100% exemption (75% in Gautam Buddha Nagar) on land from government bodies, against a bank guarantee (clause 4.2).
- 100% electricity duty exemption for ten years for new units, including captive power (clause 4.6).
- Infrastructure: 50% up to ₹3 crore for roads, drainage and power and 50% up to ₹5 crore for ETPs and DG sets on undeveloped land; 25% up to ₹2.5 crore for training, testing and R&D facilities (clause 4.4).
What could a unit get under UP Textile 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: 15–25% capital subsidy on plant & machinery (+10% in Purvanchal/Bundelkhand); 60% interest subsidy for 7 years
Illustrative only: this is the scheme’s maximum, not an estimate for your unit. Source: Uttar Pradesh Textile and Garmenting Policy 2022, notified 17 October 2022 (official English translation; the Hindi order prevails); SOP approved by the Handloom & Textile Section’s letter of 4 November 2024 (number blank on the scan).
Who can apply for UP Textile Policy 2022?
- New textile and garmenting units, and expansion or diversification, investing during the policy period with production starting within three years (clauses 3.11–3.16).
- 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 Textile Policy 2022?
- Apply to the Department of Handloom and Textiles, UP, under the policy’s standard operating procedure, approved by the Handloom & Textile Section’s letter of 4 November 2024.
Which documents are needed for UP Textile Policy 2022?
- Project report with plant and machinery investment
- EPF and employment records (to set the unit level)
- Land purchase or lease documents and bank guarantee (for stamp duty)
- Loan sanction and interest certificates (for the interest subsidy)
Why are UP Textile Policy 2022 applications rejected?
- Employment below the level claimed (the lower of the investment and employment levels applies)
- Machinery not eligible under TUFS/ATUFS for the interest subsidy
- Same incentive taken under another State policy
- Production not started within three years
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.
Frequently asked questions about UP Textile Policy 2022
- Is UP Textile Policy 2022 open?
- Yes. The current term runs until 16 October 2027. Status last verified: 20 Oct 2026.
- Who can apply for UP Textile Policy 2022?
- Micro, Small, Medium enterprises (Manufacturing).
- What is the maximum benefit under UP Textile Policy 2022?
- 15–25% capital subsidy on plant & machinery (+10% in Purvanchal/Bundelkhand); 60% interest subsidy for 7 years.
- How do I apply for UP Textile Policy 2022?
- 1. Apply to the Department of Handloom and Textiles, UP, under the policy’s standard operating procedure, approved by the Handloom & Textile Section’s letter of 4 November 2024.
- Until when can I apply for UP Textile Policy 2022?
- The current term runs until 16 October 2027. Projects must usually be registered or commence within the term; check the cut-off before you rely on it.
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