State incentivesState scheme, Uttar PradeshRelevant to manufacturing

Capital subsidy, interest subsidy and stamp duty relief for MSMEs in Uttar Pradesh

Uttar Pradesh MSME Promotion Policy 2022

01 · What it is

Uttar Pradesh's MSME policy of 2022 gives a capital subsidy for the first time and no longer ties incentives to net GST, according to the policy summary on the Invest UP site. It runs for five years from the date it was promulgated, or until a new policy comes in. The summary does not give the promulgation date. The rates below are the ones that summary states.

02 · Who should check it

Micro, small and medium units investing in Uttar Pradesh, new or expanding

03 · What it can support

Capital subsidy of 25, 20 and 15 per cent for micro, small and medium units in Bundelkhand and Purvanchal, and 20, 15 and 10 per cent in Madhyanchal and Paschimanchal, capped at ₹4 crore a unit
2 per cent more capital subsidy for SC, ST and women entrepreneurs
Micro units only: 50 per cent interest subsidy for five years, up to ₹25 lakh a unit (60 per cent for SC, ST and women entrepreneurs)
Stamp duty exemption of 100 per cent in Bundelkhand and Purvanchal, 75 per cent in Madhyanchal and Paschimanchal, and 50 per cent in Gautam Buddh Nagar and Ghaziabad. Women entrepreneurs get 100 per cent anywhere in the state
Up to 75 per cent back for quality standards such as ZED (up to ₹5 lakh), and for ERP (up to ₹1 lakh) and ICT (up to ₹5 lakh) systems
100 per cent reimbursement of the employer's EPF contribution for five years

04 · What may be required

Start commercial production within 2, 3 or 4 years of applying, for micro, small and medium units
Land cost counts towards fixed capital investment up to 10 per cent of it, and earns no subsidy itself
Total help is capped at the fixed capital investment you made
An incentive under one head can come from one policy only

05 · Documents commonly requested

Tick what you already have. 0 of 3 ready.

06 · Application route

Apply to the District Industries and Enterprise Promotion Centre in your district. The whole process is online, and approval goes through a divisional committee and then a state level committee.