UP Textile Infra Subsidy
Government of Uttar Pradesh · Central government
Uttar Pradesh's Textile and Garmenting Policy 2022 subsidises 50% of project cost, up to INR 3 Crore, for units building self-use infrastructure.
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
About this scheme
The Government of Uttar Pradesh operates the Subsidy for Infrastructure (Self-use Amenities) programme under the UP Textile and Garmenting Policy 2022. It provides financial assistance to new manufacturing units that build essential infrastructure on undeveloped land. The objective is to support industrial growth and employment in less developed areas of the state.
Eligible units can claim support for amenities such as internal roads, drainage and water supply systems, and power infrastructure including dedicated lines and transformers. These foundational elements often require significant upfront capital, particularly on greenfield sites.
The scheme is intended to reduce investment risk in the textile and garmenting sector. By covering part of the infrastructure cost, the state aims to attract domestic and international investors, encourage local enterprise, and improve Uttar Pradesh's position as a manufacturing hub. The support is expected to raise production capacity, boost export potential, and contribute to balanced economic development.
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 establishing operations on undeveloped land parcels. - Units creating infrastructural amenities for their own use, including Road, Drainage & Water Supply, and Power Supply. - Units must belong to the Textile and Garmenting sector as defined under the UP Textile and Garmenting Policy 2022.
How to apply
1. Review the official policy: Applicants must first read the complete 'UP Textile and Garmenting Policy 2022' document, with particular attention to Section 4.4.a, to ascertain all eligibility conditions and procedural requirements. 2. Prepare the project proposal: A comprehensive proposal must be drafted, detailing the proposed infrastructure work, with cost estimates for roads, drainage, water supply, and power supply, alongside architectural drawings and technical specifications. 3. Compile the required documents: All supporting paperwork should be assembled, generally comprising evidence of land ownership or lease on an undeveloped plot, detailed project reports, quotations from approved vendors, the unit's incorporation papers, and any additional forms mandated by the policy. 4. Submit the application: The prescribed form, accompanied by the full set of documents, must be filed with the designated authority—likely the Department of MSME & Export Promotion or another implementing body of the Government of Uttar Pradesh, as indicated in the policy's annexures. 5. Await scrutiny and approval: The relevant government department will examine each application to confirm eligibility, assess project feasibility, and judge whether costs are appropriate. 6. Receive the subsidy: Once sanctioned, the subsidy is paid to the qualifying unit, generally as a reimbursement, after infrastructure work has started or finished, subject to site verification and submission of expense documentation.
How applications are assessed
Applications are initially checked for completeness and compliance with the basic eligibility conditions, including registration in the textile and garmenting sector and the location of the unit on undeveloped land. Following this, a technical and financial review of the project proposal is undertaken, which covers verification of estimated project costs, an assessment of the technical feasibility and necessity of the proposed infrastructure amenities such as roads, drainage, water, and power, and an evaluation of the unit's likely contribution to the state's industrial growth.
The committee may also arrange site visits to the proposed location and hold discussions with applicants to resolve any ambiguities. Final approval is granted after this comprehensive review, ensuring that the subsidy is directed towards projects that best serve the policy's objectives of industrial development.
Frequently asked questions
What is the primary objective of this subsidy?
The scheme aims to encourage industrial growth in Uttar Pradesh’s textile and garmenting sector by offering incentives for units to build essential self-use infrastructure on undeveloped land parcels.
Which specific infrastructural amenities are covered by the subsidy?
The subsidy funds the development of self-use amenities, including internal roads, drainage and water supply systems, and power supply infrastructure such as power lines and transformers.
Is there a minimum project cost requirement to avail this subsidy?
The scheme does not specify a minimum project cost, but it subsidises 50% of the cost up to INR 3 Crore, so projects need a substantial infrastructure component to qualify for meaningful support.
Are existing units eligible for this subsidy, or only new ones?
The subsidy targets units setting up on undeveloped land parcels, meaning it applies mainly to new establishments or major expansions that involve developing fresh land.
What is the typical disbursement process for the subsidy?
The subsidy is paid on a reimbursement basis: the unit first bears the full cost of infrastructure development, then claims the eligible 50% (up to INR 3 Crore) after authorities verify the expenditure.
Is co-financing mandatory for this scheme?
Yes, the subsidy covers 50% of the project cost, so the unit must arrange the remaining 50% from its own funds or other sources.
Sectors
- Manufacturing Industrial
- Textile
- Garmenting
- Manufacturing
- Infrastructure
- Subsidy
- Uttarpradesh
Details last verified on 8 September 2026. Source: the issuer's published information.