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Uttar Pradesh Industrial Investment and Employment Promotion Policy - Incentive Package

Uttar Pradesh MSME & Industry Application Mode: ONLINE Active
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Verified Scheme Data Profile

This profile has been independently compiled from official gazette notifications and verified web domains. Source Authority Link: niveshmitra.up.nic.in Authority: Department of Industries (Uttar Pradesh) • State/Region: Uttar Pradesh • Last Audited: 24 Oct 2026

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Provides interest subsidy, capital subsidy, and duty exemptions to new manufacturing and service enterprises in notified industrial areas of Uttar Pradesh.

Detailed Summary

Policy Framework

The Uttar Pradesh Industrial Investment and Employment Promotion Policy (IIEPP) offers a structured incentive framework to stimulate industrialization and employment generation across the state. The policy targets new units establishing operations in notified industrial areas, providing a combination of fiscal and non-fiscal benefits.

Key Incentive Components

  • Interest Subsidy: Reimbursement of 5% per annum on term loans for a period of 5 years from the date of commercial production.
  • Capital Subsidy: One-time grant of 25% of eligible fixed capital investment, subject to a maximum ceiling of ₹50 Lakhs.
  • Stamp Duty Exemption: 100% exemption on stamp duty payable for purchase or lease of land/shed in notified industrial areas.
  • Electricity Duty Exemption: Full exemption from electricity duty for a period of 10 years from the date of commercial production.
  • Logistics Incentive: Freight subsidy at the rate of ₹5 per unit (kilogram/kilolitre) for transportation of finished goods.

Implementation

Applications are processed exclusively through the Nivesh Mitra single-window clearance portal. Sanction and disbursal are administered by the Directorate of Industries under the oversight of the empowered committee constituted under the policy.

Key Benefits & Financial Assistance

Comparison Criteria Benefits
Key Benefits
  • Interest subsidy @ 5% per annum on term loan for 5 years from date of commercial production
  • Capital subsidy @ 25% of eligible fixed capital investment (Plant & Machinery), maximum ₹50 Lakhs
  • 100% exemption on stamp duty for land/shed transactions in notified industrial areas
  • 100% exemption from electricity duty for 10 years from date of commercial production
  • Logistics incentive @ ₹5 per unit (kg/kl) for finished goods dispatched outside the state
  • Quality certification reimbursement up to ₹5 Lakhs for national/international standards
  • Patent registration reimbursement up to ₹10 Lakhs per patent

Eligibility Criteria Profile

Comparison Criteria Eligibility
Minimum Age Limit 18 Years or above
Physical Disability Not Restricted (Anyone can apply)
Domicile State All India (Central Scheme)

Application Process Guide

  1. Register the enterprise on the Nivesh Mitra portal (https://niveshmitra.up.nic.in) using Udyam Registration credentials
  2. Fill the online Common Application Form (CAF) for incentives under IIEPP
  3. Upload mandatory documents: Project Report, Udyam Certificate, Land Allotment/Lease Deed, Term Loan Sanction Letter, GST Registration, Environmental Clearance (if applicable)
  4. Submit application and obtain acknowledgment with unique reference number
  5. Application scrutinized by District Industries Centre (DIC) / Nodal Agency for prima facie eligibility
  6. Physical verification of unit by joint inspection team (DIC, Bank, Technical Expert) after commercial production
  7. Recommendation forwarded to State Level Empowered Committee (SLEC) for sanction
  8. Disbursal of sanctioned subsidies directly to the enterprise's bank account via PFMS/DBT

Common FAQs regarding this Yojana

Eligible permanent residents meeting the specified domicile, income, and category criteria can submit an application along with verified credentials.

Key mandatory documents include Aadhaar Card, Residence/Domicile Certificate, Income Certificate, and active Bank Account Passbook.

Benefits are directly credited to the beneficiary's Aadhaar-seeded bank account through the Public Financial Management System (PFMS) / DBT.

Applicants can track status in real-time by logging into the official portal using their Application Reference Number.