Uttar Pradesh Industrial Investment and Employment Promotion Policy - Incentive Package
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: 10 Sep 2026
Quick AI Summary
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 |
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Eligibility Criteria Profile
| Comparison Criteria | Eligibility |
|---|---|
| Minimum Age Limit | 18 Years or above |
| Occupation Status | Self-Employed |
| Domicile State | Uttar Pradesh Domicile |
Application Process Guide
- Register the enterprise on the Nivesh Mitra portal (https://niveshmitra.up.nic.in) using Udyam Registration credentials
- Fill the online Common Application Form (CAF) for incentives under IIEPP
- Upload mandatory documents: Project Report, Udyam Certificate, Land Allotment/Lease Deed, Term Loan Sanction Letter, GST Registration, Environmental Clearance (if applicable)
- Submit application and obtain acknowledgment with unique reference number
- Application scrutinized by District Industries Centre (DIC) / Nodal Agency for prima facie eligibility
- Physical verification of unit by joint inspection team (DIC, Bank, Technical Expert) after commercial production
- Recommendation forwarded to State Level Empowered Committee (SLEC) for sanction
- Disbursal of sanctioned subsidies directly to the enterprise's bank account via PFMS/DBT
Common FAQs regarding this Yojana
No, the incentives under IIEPP are strictly for 'New Units' as defined in the policy. Expansion, diversification, or modernization of existing units is generally not covered unless explicitly notified under a specific policy amendment for brownfield projects.
Notified Industrial Areas include areas developed by UPSIDA (Uttar Pradesh State Industrial Development Authority), UPEIDA (Expressways Industrial Development Authority), YEIDA (Yamuna Expressway Industrial Development Authority), and other areas specifically notified by the State Government under the Industrial Area Development Act or relevant statutes.
The capital subsidy of 25% on eligible fixed capital investment is subject to an absolute maximum cap of ₹50 Lakhs irrespective of the enterprise category (Micro, Small, Medium, or Large). A Large enterprise investing ₹10 Crores in plant & machinery would still receive a maximum of ₹50 Lakhs.
No. The interest subsidy @ 5% is admissible only on term loans sanctioned for acquisition of eligible fixed assets (land, building, plant & machinery). Working capital loans, bridge loans, or unsecured loans are explicitly excluded.
Post commercial production, the joint physical verification is typically conducted within 30-60 days. Upon recommendation by the District Level Committee and sanction by the State Level Empowered Committee (SLEC), disbursal occurs within 15-30 days via DBT. Total timeline averages 3-6 months from complete application submission.
Only if the private industrial park/estate has been formally notified as an 'Industrial Area' by the State Government under the relevant Act. Units in non-notified private layouts or revenue land converted for industrial use without specific notification are not eligible for stamp duty exemption or other area-linked benefits.