State Sector Policy
UP Textile & Garmenting Policy 2022 — Incentive Assistance
25–35% capital subsidy on plant & machinery (₹100 crore cap), plus interest subsidy, land cost subsidy, and freight reimbursement — effective since 17 October 2022.
The Uttar Pradesh Textile and Garmenting Policy 2022 offers one of the largest capital subsidies on plant & machinery for anyone setting up a textile or garmenting unit in the state, registered through the Nivesh Mitra portal.
Key incentives
- Standard textile/garment unit (min. 50 employment): 25% of plant & machinery investment
- Unit in Poorvanchal / Bundelkhand: +10% extra (up to 35% total)
- Silk reeling unit (₹1 crore+ investment): 20%
- Sericulture (chaaki worm rearing, koya production, up to ₹1 crore): 15% (20% for SC/ST entrepreneurs)
The maximum cap is ₹100 crore per unit. On top of the capital subsidy: interest subsidy on plant & machinery, land cost subsidy and stamp duty exemption, employment generation subsidy, and freight reimbursement plus electricity duty exemption.
Who it's for
- New units or expansions in textile, garmenting, silk, or sericulture
- Standard units need a minimum of 50 direct employment to access the main 25%+ capital subsidy — smaller units may find the general UP MSME Policy capital subsidy a better fit
How we help
The biggest reasons claims get held up: the 50-employment condition, machinery invoice mismatches, and missing location proof for the Poorvanchal/Bundelkhand bonus. We help you get ahead of all three:
- Confirming whether your unit meets the 50-employment threshold, or whether the general MSME capital subsidy is a better fit
- Preparing machinery invoices and location proof correctly the first time
- Arranging your stamp duty exemption before registry — it's difficult to claim after the fact
- Registering and filing your claim through the Nivesh Mitra portal within the prescribed timeline
Message us your unit type, employment plan, and location, and we'll tell you — free of charge — whether you qualify and what the next step looks like.
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