UP Warehousing & Logistics Policy 2022: Support for Storage & Distribution Infrastructure

Manufacturing and export policy conversations tend to focus on production — setting up the unit, getting the machinery running, hitting output targets. But goods still need to move from the factory to the buyer, and that depends on warehousing and logistics infrastructure that a lot of MSMEs don’t have direct access to. The UP Warehousing & Logistics Policy 2022, updating the state’s 2018 policy on the same subject, is aimed at that gap.

Why this matters especially for exporters

If you export, you’re already familiar with how much can go wrong between “goods are ready” and “goods have reached the port or the buyer.” Organized storage and efficient distribution infrastructure reduces handling delays, damage, and the working capital that gets tied up in goods sitting around waiting to move. For exporters working with tight shipment schedules or perishable/time-sensitive goods, access to good warehousing infrastructure isn’t a nice-to-have — it directly affects whether you can reliably meet delivery commitments.

What the policy covers

Broadly, this policy offers incentive categories for two kinds of investment:

• Warehousing and logistics parks — larger, often multi-tenant infrastructure projects that bring together storage, handling, and distribution capacity in one location
• Standalone units — individual warehousing or logistics facilities set up by a single business for its own or its clients’ use

The specific incentives — which tend to include capital subsidy categories and support tied to the scale and nature of the facility — differ between these two types of investment, since a large logistics park and a standalone warehouse serve different purposes and have different investment profiles.

Who should be looking at this

• Exporters who currently rely on third-party or informal storage and want to build their own organized infrastructure
• Logistics operators considering setting up a park or multi-client facility in UP
• Manufacturers whose distribution costs or delays are being driven by inadequate storage and handling infrastructure

What this means for you

As UP continues to develop as a logistics corridor — with multiple expressways and dedicated freight corridors passing through the state — the strategic value of well-located warehousing is likely to keep growing. But, as with the state’s other sector policies, the specific subsidy rates, eligible facility types, and application process are set through the policy document and periodic Government Orders, and are subject to change.

If storage or distribution bottlenecks are affecting your business, or you’re considering setting up warehousing infrastructure in UP, message us on WhatsApp. We can help you understand what’s available under this policy and whether it fits your plans.