Power Tariff Subsidy UP Textile Policy
Government of Uttar Pradesh · Central government
PM MITRA Park units receive an electricity tariff subsidy of INR 2.00/kWh, capped at INR 60 lakh a year for 5 years.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹3,00,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 5 years
About this scheme
The Power Tariff Subsidy forms part of the UP Textile and Garmenting Policy 2022. It applies to textile and garmenting manufacturing units in Uttar Pradesh, with particular attention to units set up under the PM MITRA Park scheme. The subsidy reduces electricity expenses, which are a significant operational cost for such units.
By subsidising power tariffs directly, the policy intends to improve the financial viability of these manufacturing units and their ability to compete globally. It also seeks to draw further investment into the state's textile industry, generate employment, and support technological advancement, in line with the government's wider industrial development objectives.
The programme is meant for commercial production units that provide substantial local employment, with the aim of building a durable industrial ecosystem.
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
- Units set up under the PM MITRA Park scheme - Minimum employment generation of 50 required - Subsidy available for 5 years from the date of commencement of commercial production - Electricity to be purchased from a licensee utility
How to apply
Applications for the Power Tariff Subsidy are usually made in stages, and the process can only begin once a unit has started operating inside a PM MITRA Park and satisfies the prescribed employment requirement.
- **Registration**: The unit has to register first under the wider UP Textile and Garmenting Policy 2022, complying with every general condition laid down in that policy. - **Establishment and production**: The unit has to be set up completely within a notified PM MITRA Park and begin commercial production, while generating employment for at least 50 people. - **Filing the application**: A formal application is ordinarily to be filed with the nodal agency or department tasked with implementing the policy. Such an application generally carries supporting papers, including evidence that the unit has been established inside the PM MITRA Park, electricity bills issued by a licensee utility, official records showing the date on which commercial production began, and employment figures that can be verified. - **Verification and approval**: The authority concerned then examines and verifies the documents and claims submitted, in order to confirm that every eligibility condition has been met. - **Disbursement of subsidy**: Once verification and approval are complete, the power tariff subsidy is adjusted against the unit's electricity consumption across the 5-year period, subject to the annual ceiling.
Frequently asked questions
What is the Power Tariff Subsidy under the UP Textile and Garmenting Policy 2022?
Under the UP Textile and Garmenting Policy 2022, eligible manufacturing units receive INR 2.00 per billed unit (Kwh) on electricity purchases for five years, subject to an annual ceiling of INR 60 lakh per unit.
Who is eligible for this power tariff subsidy?
Manufacturing units located within the designated PM MITRA Park in Uttar Pradesh qualify, provided they create at least 50 jobs; the subsidy applies from the date commercial production begins, for electricity purchased from a licensed utility provider.
What is the maximum amount of subsidy a unit can receive annually and overall?
An eligible unit can claim up to INR 60 Lakh per annum as power tariff subsidy. Since the subsidy runs for five years, the maximum benefit a unit may receive over the full programme period works out to INR 3 Crore.
How long is the Power Tariff Subsidy provided to eligible units?
The subsidy runs for five years, starting from the date the eligible unit begins commercial production.
Are there any specific employment criteria to qualify for the subsidy?
Yes. A unit must generate at least 50 jobs and keep that employment level to qualify for the power tariff subsidy and to keep receiving it.
Which geographical area does this policy and subsidy cover?
The Power Tariff Subsidy applies only to manufacturing units set up and running inside a PM MITRA Park in Uttar Pradesh. It is an incentive tied to that specific industrial zone.
Can existing units avail this subsidy?
The scheme applies to units established within a PM MITRA Park that commence commercial production and generate minimum employment of 50, rather than to pre-existing units outside the park.
Sectors
- Manufacturing Industrial
- Power Tariff
- Subsidy
- Textile
- Garmenting
- Pm Mitra Park
- Uttar Pradesh
Details last verified on 16 September 2026. Source: the issuer's published information.