Electricity Duty Exemption (UP Textile)

Under the UP Textile and Garmenting Policy 2022, new manufacturing units in Uttar Pradesh can claim an exemption from electricity duty for captive power plants. The incentive lowers running costs for these units and extends financial relief on the electricity they consume.

By waiving electricity duty for a defined period, the policy makes investment in captive power generation more attractive. This supports the textile and garmenting sector in meeting its energy needs on its own and reduces its environmental burden.

For new textile and garmenting businesses in the state, the exemption improves their ability to compete. It also forms part of the Government of Uttar Pradesh's efforts to raise industrial output and generate employment in the sector.

- Go through the full 'UP Textile and Garmenting Policy 2022' document, in particular Section 4.6.b, to obtain the complete details and the specific procedural conditions. - Assemble the paperwork that is required, which usually covers evidence of being set up as a new textile or garmenting unit in Uttar Pradesh, detailed plans together with operational licences for the Captive Power Plant, and projections or records of electricity consumption for self-use. - File the electricity duty exemption application with the designated authority. As a rule, this means submitting it to the Department of Energy or the Department of Industries of the Government of Uttar Pradesh, in the manner laid down by the policy guidelines. - Track the progress of the application and furnish any further particulars the reviewing authorities ask for, so that processing and approval are not delayed.

The concerned state department will scrutinise each Electricity Duty Exemption application in detail. Assessment centres on whether the applicant unit satisfies every stated eligibility condition — that it qualifies as a 'new' textile and garmenting unit, runs a Captive Power Plant, and uses the electricity generated exclusively for self-consumption within the unit.

Submitted documents are examined by the review committee, which may also carry out site visits where needed to verify the applicant's claims. Approval is ultimately granted subject to compliance with the terms and conditions set out in the UP Textile and Garmenting Policy 2022.