UP Electricity Duty Exemption for New Textile & Garment Units
Government of Uttar Pradesh · Central government
Uttar Pradesh exempts new textile and garmenting units from electricity duty for 10 years.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 121 months
About this scheme
The Electricity Duty Exemption scheme falls under the Uttar Pradesh Textile and Garmenting Policy 2022. It provides a financial incentive to eligible manufacturing units in the state's textile and garmenting sector.
The scheme is intended to draw fresh investment, support industrialisation and generate employment. By reducing a major operational cost, it encourages entrepreneurs to set up and grow their units in Uttar Pradesh, aiding the state's economic development and its position as a centre for textile and garment production.
The exemption targets the energy costs borne by industries, making the state more appealing to textile manufacturers seeking long-term viability and lower overheads. It reflects the government's use of targeted fiscal incentives to support key industrial sectors.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Uttar Pradesh
- Textile and garmenting units that are new - Located in Uttar Pradesh
How to apply
- New textile and garmenting units that wish to apply should consult the official Uttar Pradesh Textile and Garmenting Policy 2022 document, which sets out the application procedure and eligibility criteria in detail. - As a rule, the process requires a formal application to be filed with the designated state industrial department or nodal agency. - Documents sought may cover proof of unit establishment, business registration, project particulars, and declarations establishing eligibility as a 'new unit'. - Each application is examined to confirm it complies with the policy guidelines. - Once verification is completed successfully, the exemption is allowed for the stipulated 10-year period, lowering the electricity duty payable on power consumption.
Frequently asked questions
What is the primary benefit of the Electricity Duty Exemption Scheme?
New textile and garmenting units receive a full exemption from electricity duty for 10 years under this scheme, which lowers their running costs considerably.
Who is eligible to claim this exemption?
Under the UP Textile and Garmenting Policy 2022, newly set-up textile and garmenting units in Uttar Pradesh can claim this benefit.
How long does the exemption last?
Units that qualify get a full exemption from electricity duty for 10 years, counted from the date commercial operations begin.
Is there a specific application deadline for this scheme?
Under the UP Textile and Garmenting Policy 2022, applications from new units are accepted on a rolling basis for as long as the policy remains in force.
What kind of businesses can apply?
Private limited companies, LLPs, partnerships, proprietorships and one-person companies can apply, provided they set up new textile and garmenting manufacturing units in Uttar Pradesh.
Can existing units avail this exemption?
No. The policy limits the exemption to new textile and garmenting units.
Is there a specific financial amount associated with this exemption?
The scheme provides a full exemption from electricity duty, so the amount saved depends on how much electricity the unit actually consumes rather than being a fixed grant.
Sectors
- Manufacturing Industrial
- Textile
- Garmenting
- Electricity Duty
- Exemption
- Uttar Pradesh
Details last verified on 18 September 2026. Source: the issuer's published information.