UP Capital Subsidy for ICD, CFS & Air Freight Station Projects
Government of Uttar Pradesh · Central government
ICD, CFS and AFS projects receive 25% of eligible capital investment, capped at ₹25 crore, or ₹50 crore in Logistics Zones.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹50,00,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Released against milestones
About this scheme
The Capital Subsidy scheme operates as an incentive under the New UP Warehousing & Logistics Policy 2022, rolled out by the Government of Uttar Pradesh. Through this policy, the state seeks to strengthen its logistics infrastructure by drawing investment into facilities such as Inland Container Depots (ICDs), Container Freight Stations (CFSs), and Air Freight Stations (AFSs).
Financial support extended under the programme is intended to reinforce Uttar Pradesh's standing as a logistics hub, sharpen connectivity, and bring down operating costs for enterprises in a range of sectors. It also promotes the setting up and enlargement of modern warehousing and logistics capacity, which matters for supply chain efficiency and economic growth.
The scheme is structured to build an investment-friendly climate and to support the emergence of integrated, high-quality logistics solutions within the state.
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
Eligibility conditions:
- The project must be an Inland Container Depot (ICD), Container Freight Station (CFS), or Air Freight Station (AFS). - The project must be established at a location within Uttar Pradesh. - The subsidy is computed on the eligible capital investment incurred in the project.
How to apply
- **Review the policy document:** Read the New UP Warehousing & Logistics Policy 2022 in full to grasp the specific terms, conditions, and what counts as 'eligible capital investment'. - **Prepare the application:** Assemble every document required, such as project proposals, financial projections, land ownership or lease agreements, and itemised cost breakdowns of capital investment. - **Submit the application:** Send the completed application to the nodal agency or department that the Government of Uttar Pradesh has designated, as specified in the policy. - **Verification and assessment:** The application will be examined in detail, which may involve site inspections and checks of both proposed and actual capital expenditure. - **Approval and disbursement:** Once the competent authority completes its assessment and grants approval, the subsidy is released either in tranches or against verified milestones of project completion and capital expenditure.
How applications are assessed
A dedicated committee, made up of officials drawn from the Industrial Development Department alongside other concerned state agencies, generally reviews Capital Subsidy applications. Its assessment covers how far the project proposal matches the policy's objectives, whether the capital investment qualifies, and the project's viability and likely effect on the state's logistics sector.
Depending on the case, this may extend to financial due diligence, technical feasibility studies and site visits, which serve to verify adherence to policy guidelines and the progress of project implementation. Approval, and the release of the subsidy thereafter, follow only once these checks are complete.
Frequently asked questions
What is the Capital Subsidy scheme?
Under the New UP Warehousing & Logistics Policy 2022, the Capital Subsidy scheme offers financial assistance to projects that establish or expand eligible logistics infrastructure in Uttar Pradesh.
Who is eligible to claim this subsidy?
The subsidy applies to entities carrying out Inland Container Depot (ICD), Container Freight Station (CFS) and Air Freight Station (AFS) projects in Uttar Pradesh.
What is the maximum amount of subsidy I can receive?
The maximum subsidy available is ₹25 crore for projects anywhere in Uttar Pradesh, though projects set up within the state's designated Logistics Zones may receive up to ₹50 crore.
How is the subsidy amount calculated?
The subsidy amounts to 25% of the total eligible capital investment in the ICD/CFS/AFS project, capped at the prescribed maximum limits.
Are there any specific locations that receive higher benefits?
Projects located in Uttar Pradesh's designated Logistics Zones can receive a maximum subsidy of ₹50 crore, whereas the ceiling for projects elsewhere in the state is ₹25 crore.
Is this a loan, or does the government take equity?
No, this is a capital subsidy, so the amount you receive against your capital investment is a grant that need not be repaid. The government does not acquire any equity in your project or company in return.
Sectors
- Logistics Mobility
- Warehousing
- Logistics
- Capital Subsidy
- Uttar Pradesh
- Infrastructure
Details last verified on 18 September 2026. Source: the issuer's published information.