Mukhyamantri Handloom and Powerloom Udyog Vikas Yojana (Uttar Pradesh Handloom and Powerloom Development Support)

What is the Mukhyamantri Handloom and Powerloom Udyog Vikas Yojana?

Mukhyamantri Handloom and Powerloom Udyog Vikas Yojana is the name commonly used for Uttar Pradesh's handloom and power-loom development support. It is important to be accurate about this: no standalone scheme document under that exact name is published on the Uttar Pradesh government portals. What exists, and what the state actually administers, is a set of handloom and power-loom provisions inside two published policies of the Department of Handloom and Textiles, Government of Uttar Pradesh:

• the Uttar Pradesh Handlooms, Powerlooms, Silk, Textile and Garmenting Policy, notified in 2017, and
• the Uttar Pradesh Textile and Garmenting Policy 2022, which carries a dedicated set of incentives for people entering weaving, design, marketing and export.

Anyone searching for the Mukhyamantri name, or for its Hindi form, Mukhyamantri Hathkargha evam Powerloom Udyog Vikas Yojana; should look for those two policy documents on the Invest UP portal. This guide sets out only what those official documents say.

Who is eligible for handloom and power-loom support in Uttar Pradesh?

Who can claim:

• Three-year diploma holders from an Indian Institute of Handloom Technology (IIHT), who are the specified applicants for the handloom and power-loom installation incentive.
• Graduates in textile, textile design or fashion design, for the garmenting, apparel and home furnishing self-employment incentives.
• Graduates in textile design, fashion design or fashion branding and marketing, for the design studio incentive.
• Silk and sericulture units; chaaki worm rearing, koya production, reeling and spinning; including SC and ST entrepreneurs, who receive a higher rate.
• Resident men and women of Uttar Pradesh not above 35 years of age, for the self-employment facility Invest UP describes in the handloom and textile marketing components.
• New and expanding textile and garmenting units, under the wider capital subsidy of the 2022 policy.

Who cannot apply:

• A weaver without the specified IIHT diploma is not eligible for the handloom and power-loom installation incentive, however experienced. That component is explicitly tied to the qualification.
• Applicants from outside Uttar Pradesh cannot apply.
• Projects below the minimum scale are not eligible, the handloom component requires 5 to 20 looms and the power-loom component 5 to 10 looms.
• Individuals seeking a cash grant unconnected to a loom, unit or documented project cannot apply. Every component funds an asset or an enterprise.

How much support is available for installing looms?

Invest UP records that preference is given to the children of weavers in the marketing company component. For those who build a retail chain, the policy adds brand incentives of Rs 2 crore for 50 outlets with Rs 4 crore of annual sales, rising to Rs 10 crore for 500 outlets with Rs 20 crore of annual sales, on the condition that at least 80 percent of outlets are opened outside Uttar Pradesh.

What does the silk and sericulture component give?

• 15 percent capital subsidy as margin money for chaaki worm rearing, koya production, reeling and spinning units with capital investment up to Rs 1 crore that take a loan from a bank or financial institution.
• 20 percent capital subsidy for SC and ST entrepreneurs in the same category.
• 20 percent capital subsidy for silk reeling units with capital investment of Rs 1 crore or more.
• 5 percent interest subsidy on working capital loan for five years, capped at Rs 50,000 per annum, for silk reeling units producing at least 75 percent of their thread from koya produced in Uttar Pradesh.

What did the 2017 handloom and power-loom policy provide?

The Uttar Pradesh Handlooms, Powerlooms, Silk, Textile and Garmenting Policy 2017 remains on the Invest UP portal and set the framework that the 2022 policy builds on. Its published highlights are:

• Land subsidy at 50 percent of land cost, reduced to 30 percent in Gautam Buddh Nagar district, on land purchased from state agencies.
• Stamp duty exemption at 100 percent, reduced to 75 percent in Gautam Buddh Nagar district.
• SGST refund for 10 years to 90 percent to MSME units and 80 percent to mega units.
• Electricity duty exemption at 100 percent to new units for 10 years.
• Capital investment subsidy at 25 percent on plant and machinery, based on investment.
• Interest subsidy at 7 percent up to Rs 1.5 crore, reduced to Rs 75 lakh for Gautam Buddh Nagar, for seven years on procurement under the central TUFS scheme.
• Infrastructure interest subsidy at 5 percent up to Rs 1 crore for five years per unit, for developing infrastructural amenities.
• Quality development subsidy at 5 percent up to Rs 1 crore for five years per laboratory, for research and quality improvement.
• EPF reimbursement for five years to a new unit at 50 percent with a minimum of 100 workers and 60 percent with a minimum of 200 workers.
• For textile parks, 100 percent stamp duty exemption to the developer outside Gautam Buddh Nagar and 50 percent to the first buyer of a plot, along with 50 percent interest subsidy on land purchase for seven years up to Rs 50 crore, and 60 percent for seven years for construction of staff quarters, hostels and dormitories.

For textile and garmenting incentives, the 2022 policy now governs. Weavers and small units should confirm with the Department of Handloom and Textiles which policy applies to a given project before filing.

How to apply for handloom and power-loom support in Uttar Pradesh

1. Confirm the qualification route. For the loom installation incentive, check that the applicant holds a three-year diploma from an Indian Institute of Handloom Technology, since that is the eligibility condition in the policy.
2. Prepare a project report for the shed showing the number of looms, machinery cost and working capital. The subsidy is 75 percent of project cost against a fixed ceiling, so the report drives the sanctioned amount.
3. Register on niveshmitra.up.nic.in, activate the account and file the Common Application Form, selecting the Handloom and Textile sector.
4. Run the Know Your Approvals and Incentives wizard on the same portal to see which clearances and which incentive component apply.
5. Submit the incentive application with the diploma certificate, residence proof, identity proof, project report, bank details and, for silk applicants claiming the higher rate, the SC or ST caste certificate.
6. Answer the single departmental query if one is raised, which Nivesh Mitra permits within seven days of submission.
7. Track the application on the dashboard until sanction, and file the claim with invoices and payment proof once the looms or machinery are installed.

District offices of the Department of Handloom and Textiles help weavers prepare the file, and the Directorate of Textile is named by Invest UP as the nodal agency for the textile policy.

Common reasons applications fail

• No IIHT diploma, where the loom installation incentive is claimed.
• Fewer than five looms in the proposed shed, which falls below the policy's own range.
• Project cost inflated beyond documentary support, since the 75 percent is computed on verified cost, not on the figure stated in the report.
• Bank loan not sanctioned in the silk component, where the capital subsidy is structured as margin money against a bank or financial institution loan.
• Caste certificate missing where the 20 percent SC or ST rate is claimed, so the case is settled at 15 percent.
• Application filed offline when the state has mandated that industrial and business applications be accepted only through Nivesh Mitra.

Where to get help

• Directorate of Textile, Department of Handloom and Textiles, Government of Uttar Pradesh. The nodal agency named by Invest UP
• Invest UP: +91-522-3129570; helpdesk 0522-3117976 and +91 522 6923000, 9:30 AM to 6:00 PM, Monday to Saturday on working days
• Email: info@investup.org.in
• Single window and grievances: niveshmitra.up.nic.in

Applying is free apart from the statutory consolidated fee shown on the portal. Because the Mukhyamantri name is not attached to a published scheme document, weavers should be careful with any agent who offers, for a fee, to enrol them in a "Mukhyamantri" handloom scheme. Ask instead for the policy component and the government order number under which the claim is being made.

How to check your application status

1. Log in to the Nivesh Mitra portal at niveshmitra.up.nic.in with the same credentials used to file the Common Application Form. The dashboard is the only place the department posts a live status; there is no separate handloom-specific tracker.
2. Open the application dashboard and locate the application number issued at the time of submission. Each stage, receipt, departmental query, sanction or rejection, is timestamped against this number.
3. Check for a pending query first. If the case shows "query raised," the application is not moving until the applicant uploads the missing document or clarification through the same dashboard. Nivesh Mitra allows only one round of query and reply, so read the query text carefully before responding.
4. Watch for a sanction letter or rejection order once the query stage clears. A sanction letter carries the approved component (handloom, power loom, garmenting, design studio, marketing company or silk subsidy) and the sanctioned amount, which can be lower than the amount applied for if the verified project cost was less than what was claimed.
5. File the claim only after installation. Status tracking continues past sanction: once looms or machinery are installed and invoices are uploaded, the dashboard shows a separate claim-processing stage before the subsidy is released, since the incentive is reimbursed against verified installation, not paid at the time of sanction.
6. Call the helpline if the portal status has not changed for several weeks. Invest UP's helpdesk (0522-3117976, +91-522-3129570 and +91 522 6923000, 9:30 AM to 6:00 PM, Monday to Saturday) can look up an application number and tell an applicant which desk is holding it.
7. Visit or write to the district office of the Department of Handloom and Textiles for cases stuck at the district verification stage, since site inspection of looms or a unit is usually done by district staff before the file moves back to the state dashboard. The district office cannot change the Nivesh Mitra status directly but can confirm whether the inspection report has been filed.
8. Use the niveshmitra.up.nic.in grievance option if the status has not changed despite a helpline call and a district visit; this routes the case to a state-level grievance officer with a fixed response timeline rather than leaving it in the general queue.