MySubsidy

UP ETP & DG Set Subsidy 2022

Government of Uttar Pradesh · Central government

The UP Textile and Garmenting Policy 2022 offers up to ₹5 crore to Uttar Pradesh units installing ETPs and DG Sets on undeveloped land.

Open, rolling. Applications are accepted continuously — there is no deadline.

Key facts

Subsidy amount
Up to ₹5,00,00,000
Instrument
Subsidy
Deadline
Rolling
Disbursement
Reimbursed after spend

About this scheme

The Uttar Pradesh Textile and Garmenting Policy 2022 seeks to strengthen and modernise the state's textile and garmenting industry. Under Section 4.4.b of the policy, financial assistance is extended towards setting up Effluent Treatment Plants (ETPs) and Diesel Generator (DG) Sets, so that units adopt environmentally responsible manufacturing practices and maintain a dependable power supply.

This support matters most to industrial units that begin operations on undeveloped land parcels, where pollution control and power generation infrastructure has to be built from the ground up. The policy acknowledges that sound environmental infrastructure and steady energy resources are increasingly central to industrial growth and competitiveness over the long term.

Through this subsidy, the Government of Uttar Pradesh backs the modernisation and expansion of the textile industry while also encouraging ecological responsibility and reducing the sector's environmental footprint, moving towards a greener and more sustainable 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

- Operations to be established on undeveloped land parcels. - Effluent Treatment Plants (ETPs) and Diesel Generator (DG) Sets are the assets for which the subsidy is granted. - Compliance with norms laid down by the Central Pollution Control Board (CPCB), the National Green Tribunal (NGT), or any statutory body of the Government of India or the Government of Uttar Pradesh is required for the ETPs and DG Sets.

How to apply

Applications for the Subsidy for ETPs and DG Sets are made within the wider framework of the UP Textile and Garmenting Policy 2022. A unit wishing to claim this subsidy normally applies to the designated department — in most cases the Department of Micro, Small and Medium Enterprises (MSME) or the Directorate of Industries in Uttar Pradesh — in line with the policy's detailed guidelines. The process generally requires a comprehensive application form to be filed together with supporting documents.

Supporting documents ordinarily comprise:

- project proposals setting out the planned establishment of ETPs and DG Sets - detailed cost estimates - proof of land ownership or allocation, particularly for undeveloped land parcels - environmental clearance certificates or plans - declarations confirming compliance with CPCB/NGT norms - financial statements - company incorporation details - any further documents the state government specifies for verification and approval

Units interested in applying should consult the full UP Textile and Garmenting Policy 2022 document and any supplementary application handbooks, which set out precise instructions and the list of required enclosures. Submission is typically made through an online portal managed by the state's industries department, or directly at district industry centres, either within a structured submission window or on an ongoing basis, depending on the policy's implementation rules.

Apply on the issuer's site

Frequently asked questions

What is the maximum subsidy amount I can receive?

The scheme provides up to ₹5 crore (INR 50,000,000) per eligible unit.

What expenses are covered by this subsidy?

Effluent Treatment Plants (ETPs) and Diesel Generator (DG) Sets qualify for a subsidy of 50% of the project cost.

Are there any specific requirements for the ETPs and DG Sets?

Effluent Treatment Plants and Diesel Generator Sets are required to comply with the norms and standards laid down by the Central Pollution Control Board (CPCB), the National Green Tribunal (NGT), or any other concerned statutory authority of the Government of India or Uttar Pradesh.

Who is eligible to claim this subsidy?

This subsidy applies to units installing ETPs and DG Sets on undeveloped land parcels in Uttar Pradesh.

Is co-financing required for the project?

Yes — the scheme funds half the project cost, so the applicant unit has to arrange the other 50% itself.

How is the subsidy disbursed once approved?

The published scheme details do not specify a disbursement mechanism. Infrastructure establishment subsidies are commonly released either as a lump sum or in instalments once milestones are verified as complete, or as reimbursement after the project is set up and expenditure incurred, in each case subject to verification by the sanctioning authority.

Is this a grant or a loan?

A subsidy is non-repayable financial assistance, much like a grant, so it does not have to be paid back.

Sectors

  • Manufacturing Industrial
  • Uttar Pradesh
  • Textile Industry
  • Pollution Control
  • Environmental Compliance
  • Msme Support
  • Industrial Development

Details last verified on 14 September 2026. Source: the issuer's published information.