A choice of incentive packages for large manufacturing projects
Uttar Pradesh Industrial Investment and Employment Promotion Policy 2022
We read the full English text of the policy that Invest UP links from its policy page. It takes effect on notification, which the state's later orders date to 4 November 2022, and stays in force for five years, so to about November 2027, or until it is amended. Invest UP's policy list, updated on 13 October 2026, still shows it as the current investment policy with no successor, and the Cabinet cleared letters of comfort under it in May 2026. The Invest UP highlights PDF puts the Super Mega and Ultra-Mega boundary at ₹5,000 crore, but the policy text and the 14 April 2023 government order say ₹3,000 crore, and the figures below follow the policy text.
Projects investing more than ₹50 crore in Uttar Pradesh. Smaller units come under the MSME policy
- Option 1: a capital subsidy of 10 to 30 per cent of eligible capital investment, by region and size, paid in yearly instalments over 10 years (Large), 12 (Mega), 15 (Super Mega) or 20 (Ultra-Mega), scaled by how much of your capacity you use. Mega and above can add boosters of 2 to 4 per cent each for jobs, exports and buying from Uttar Pradesh units
- Option 2: reimbursement of 100 per cent of net SGST for 6 to 16 years by size, within yearly and overall limits that depend on the region
- Option 3: a top-up of 30 per cent on incentives paid under the Government of India's PLI schemes, with the total capped at 100 per cent of eligible capital investment
- Stamp duty exemption of 100 per cent in Bundelkhand and Poorvanchal, 75 per cent in Madhyanchal and Paschimanchal, and 50 per cent in Gautam Buddh Nagar and Ghaziabad, against a bank guarantee released when production starts
- Standalone R&D units: 25 per cent of the spending, up to ₹10 crore, on top of the above
- Capital investment above ₹50 crore: Large ₹50 crore to under ₹200 crore, Mega ₹200 crore to under ₹500 crore, Super Mega ₹500 crore to under ₹3,000 crore, Ultra-Mega ₹3,000 crore and above
- Complete the investment within 4, 5, 7 or 9 years (by size) or by the start of commercial production, whichever is earlier
- One package only, chosen at the time of applying, with one later chance to change before the committee approves
- A manufacturing unit, new, expanding or diversifying. MSMEs get their incentives under the MSME policy instead
Through Nivesh Mitra, the state's single window, which Invest UP links from the policy page. An evaluation committee examines the application, and the High-Level Empowered Committee or the Empowered Committee grants a Letter of Comfort.