UP Textile & Garmenting Interest Subsidy
Government of Uttar Pradesh · Central government
A scheme for textile and garmenting units in Uttar Pradesh, reimbursing 60% of annual interest on plant and machinery loans, capped at ₹1.5 crore per annum.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹1,50,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 85 months
About this scheme
The Interest Subsidy on Plant and Machinery is an incentive available under the Uttar Pradesh Textile and Garmenting Policy 2022. It applies to textile and garment manufacturing units across Uttar Pradesh that make substantial capital investments, and is intended to reduce the financial burden such investments place on them.
The scheme covers businesses buying advanced plant and machinery where the purchase is funded through loans from commercial banks and recognised financial institutions. A portion of the annual interest payable on these eligible loans is subsidised.
Through this interest support, the policy seeks to encourage technological upgradation, expand production capacities and improve competitiveness in the sector. The stated aim is to support industrial growth, generate employment and establish Uttar Pradesh as a leading hub for textile and garment manufacturing in India.
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
- The unit must be engaged in textile or garmenting activity in Uttar Pradesh. - The unit must be buying plant and machinery. - The plant and machinery so bought must qualify under the TUFS/ATUFS schemes. - The unit must have obtained a loan from a commercial bank or financial institution to fund that plant and machinery.
How to apply
- Go through the UP Textile and Garmenting Policy 2022 in full, with particular attention to Section 4.5, to understand the eligibility conditions and the instructions for applying. - Assemble a complete application package: a detailed project report, documentary proof of loan sanction and disbursement issued by commercial banks or financial institutions, invoices covering plant and machinery, and records showing the interest payments made. - Obtain certification that the plant and machinery purchased qualify under the Technology Upgradation Fund Scheme (TUFS) or the Amended Technology Upgradation Fund Scheme (ATUFS) guidelines. - Send the filled-in application form together with every supporting document to the nodal agency nominated by the Government of Uttar Pradesh, which is usually Invest UP or the Department of MSME & Export Promotion. - Follow the application format, submission deadlines and other procedural conditions set out in the official policy document without deviation.
How applications are assessed
The concerned state government department screens each application against the eligibility conditions, loan particulars and interest payment records, and checks conformity with the UP Textile and Garmenting Policy 2022. Submitted documents are validated and the admissible subsidy is worked out on the basis of the interest paid during the year, so that support reaches only units that qualify.
Frequently asked questions
Who is eligible for this interest subsidy?
Textile and garmenting units registered and running in Uttar Pradesh qualify, provided they have taken loans from commercial banks or financial institutions to buy new plant and machinery that satisfies the eligibility norms of the TUFS/ATUFS schemes.
What percentage of the annual interest is reimbursed?
What percentage of the interest paid on plant and machinery loans is reimbursed? 60% of the actual annual interest paid on qualifying loans for plant and machinery is reimbursed.
Is there a maximum limit for the subsidy?
Textile and garmenting units anywhere in Uttar Pradesh can receive up to ₹1.5 Crore in annual interest subsidy, though the ceiling is ₹75 Lakhs per annum per unit for those located in Gautam Budh Nagar district.
How long can a unit avail this interest subsidy?
Interest subsidy is available for up to 7 years, counted from the loan disbursement date or from the eligibility start date specified in the policy.
What kind of documentation is required for application?
Applicants generally have to provide loan sanction letters, disbursement proofs, interest-paid statements from their financial institution, invoices and installation evidence for plant and machinery, along with the unit's incorporation and tax registration documents; meeting TUFS/ATUFS machinery eligibility requirements is equally important.
Sectors
- Manufacturing Industrial
- Textile
- Garmenting
- Interest Subsidy
- Plant And Machinery
- Manufacturing
- Uttar Pradesh
Details last verified on 14 September 2026. Source: the issuer's published information.