UP Electricity Duty Exemption for Logistics Park Developers

The Government of Uttar Pradesh provides an Electricity Duty Exemption as an incentive to encourage warehousing and logistics infrastructure development in the state. The scheme sits within the New UP Warehousing & Logistics Policy 2022, which aims to establish Uttar Pradesh as a logistics hub in India.

Under this incentive, new logistics parks receive a 100% exemption on electricity duty for 10 years. This lowers operational costs for such parks, with the objective of drawing investment, supporting economic growth and generating employment.

For developers setting up or expanding logistics operations in Uttar Pradesh, the exemption is relevant to their cost calculations and improves the state's standing as a destination for such investment. It forms part of the government's efforts to ease doing business and build a logistics ecosystem that supports industrial and trade growth.

Under the New UP Warehousing & Logistics Policy 2022, the Electricity Duty Exemption is sought through the same application route that applies to incentives generally. Those applying, usually Logistics Park Developers, must:

- Send a formal application, describing the project and how it meets eligibility criteria, to the nodal agency or department named in the policy document. - Furnish the full set of supporting documents, which can take in project reports, land acquisition particulars, incorporation papers and proof of the investment proposed. - Wait for the designated state-level committee or implementing authority to review the application and grant approval. - Once approval is received and operations have begun, lodge the claim for the electricity duty exemption itself, or seek its notification, following the prescribed procedural guidelines.

Under the New UP Warehousing & Logistics Policy 2022, incentives are awarded only after a multi-stage appraisal. A committee drawn from concerned state government departments — among them the Department of Industrial Development and the Department of Energy — examines each application.

The committee weighs how far the project complies with policy guidelines, the investment the applicant has committed, and the economic impact it is likely to generate. Approval at the final stage rests on these assessments together with how far the logistics park development advances the state's wider economic vision.