Uttar Pradesh Electronics Component Manufacturing Policy Incentives

What is the Uttar Pradesh Electronics Component Manufacturing Policy?

The Uttar Pradesh Electronics Component Manufacturing Policy is the state's incentive framework for firms that manufacture electronic components; not finished phones or laptops, but the display modules, camera modules, printed circuit boards, passive components, enclosures and cells that go inside them. It is a policy of the Department of IT and Electronics, hosted and facilitated by Invest UP.

The current instrument is the Uttar Pradesh Electronics Component Manufacturing Policy 2025 (First Amendment). The English policy document on the Invest UP portal was updated on 20 May 2026, with the Hindi version dated 18 November 2025. It replaces an older line of policy: the Uttar Pradesh Electronics Manufacturing Policy 2020, itself a successor to the 2017 policy, both of which remain listed on the Department of IT and Electronics policy pages for units sanctioned under them.

The 2025 policy is designed to sit on top of the Government of India's Electronics Component Manufacturing Scheme (ECMS) rather than compete with it. Invest UP describes the headline attraction as top-up benefits equal to central ECMS incentives, which it frames as a double advantage for investors: the unit draws the central incentive, and Uttar Pradesh matches it.

This is an industrial policy, not a citizen benefit. No individual can apply, no household receives money, and there is no beneficiary list to check.

What incentives are on offer?

Core financial incentives

• Top-up benefits equal to central ECMS incentives, for units covered under the central scheme.
• Capital subsidy of up to 20 percent for units not covered under central ECMS.
• Customised mega packages negotiated case-to-case for investments above Rs 2,000 crore.

Strategic component boosters

• An additional 2 percent incentive for lithium-ion cell manufacturing for digital applications with local sourcing.
• An additional 1 percent incentive for multi-layer PCB manufacturing using local laminates.

State support package

• Land subsidy of 25 percent, rising to up to 50 percent in Bundelkhand and Purvanchal.
• 100 percent stamp duty exemption.
• 100 percent electricity duty exemption.
• Interest subsidy on term loans.
• EPF reimbursement on employer provident fund contributions.
• Patent cost reimbursement.
• Logistics and R&D support.

The regional weighting on land subsidy is the same device Uttar Pradesh uses in its Data Centre Policy. A 25 percent baseline in the developed western and central belts, and up to 50 percent in Bundelkhand and Purvanchal, to pull investment away from the Noida–Ghaziabad concentration.

Which products qualify?

The policy defines its scope by focus segment, and a proposal that cannot be mapped to one of these will not qualify:

A. Sub-assemblies

• Display Module Sub-Assembly
• Camera Module Sub-Assembly

B. Bare components

• Non-SMD passive components
• Electro-mechanicals for electronic applications
• Multi-layer PCB
• Lithium-ion cells for digital applications, excluding storage and mobility
• Enclosures for mobile phones, IT hardware products and related devices

C. Selected bare components

• HDI, MSAP and flexible PCB
• SMD passive components

D. Supply chain ecosystem and capital equipment

• Supply chain for the sub-assemblies and bare components in segments A, B and C
• Capital goods used in electronics manufacturing, including their sub-assemblies and components

The explicit exclusion of storage and mobility applications from the lithium-ion head is the detail investors most often miss. A cell plant aimed at electric two-wheelers or grid storage falls outside this policy; the Uttar Pradesh Electric Vehicle Manufacturing Policy 2022 is the relevant instrument there.

Who can and cannot claim?

Eligible applicants:

• Companies and LLPs setting up, expanding or modernising an electronics component manufacturing unit physically located in Uttar Pradesh.
• Units whose products fall within focus segments A, B, C or D.
• Units approved under central ECMS, for the matching top-up.
• Units outside central ECMS, for the state capital subsidy of up to 20 percent.
• Investors committing above Rs 2,000 crore, for a customised mega package.
• Manufacturers sourcing locally, for the 2 percent lithium-ion and 1 percent multi-layer PCB boosters.

Not eligible: cannot apply:

• Individuals. There is no personal benefit, no citizen form and no individual claim under this policy.
• Units manufacturing finished consumer electronics rather than components, sub-assemblies, supply chain items or capital goods.
• Lithium-ion cell plants for storage or mobility applications, which are expressly excluded.
• Units located outside Uttar Pradesh.
• Applicants attempting to claim both the ECMS-matching top-up and the 20 percent capital subsidy for the same investment, the capital subsidy is specified for units not covered under central ECMS.
• Traders, assemblers-for-hire and importers without a manufacturing investment in the state.

How to apply for UP electronics component manufacturing incentives

The route is institutional. There is no online citizen form.

1. Download and read the policy. Get the English text of the Uttar Pradesh Electronics Component Manufacturing Policy 2025 (First Amendment) from invest.up.gov.in. Map your product precisely to a focus segment before anything else, because segment placement determines both eligibility and the applicable incentive rate.
2. Decide your central ECMS position. Apply for the Government of India's Electronics Component Manufacturing Scheme if your product line is covered. Whether you are inside or outside ECMS decides whether you claim the state top-up or the 20 percent capital subsidy.
3. Prepare the detailed project report. Include fixed capital investment with and without land and building, product-wise capacity, employment projections, local sourcing plans for laminates or cell inputs where you intend to claim the boosters, and a commissioning timeline.
4. Register with Invest UP. Take the project to Invest UP at invest.up.gov.in, the state investment promotion agency, which handles investor facilitation and policy-level examination of proposals. Projects above Rs 2,000 crore should raise the mega package question at this stage, since those packages are negotiated case-to-case rather than drawn from a table.
5. Obtain clearances through Nivesh Mitra. Use the state single-window system at niveshmitra.up.nic.in for the NOCs, licences and departmental clearances the plant requires.
6. Take land allotment from the authority. Secure allotment from the relevant industrial development authority, which is what makes the stamp duty exemption and land subsidy operative.
7. Commission the plant and file claims. After commissioning, file incentive claims with chartered accountant certified fixed capital investment statements, bank sanction and interest certificates for the interest subsidy, EPF contribution records for the EPF reimbursement head, patent fee receipts for patent reimbursement, and local sourcing evidence for the strategic component boosters.

Key dates and policy status

• 2017 — Uttar Pradesh Electronics Manufacturing Policy 2017 notified.
• 2020: Uttar Pradesh Electronics Manufacturing Policy 2020 supersedes the 2017 policy.
• 18 November 2025: Hindi text of the Uttar Pradesh Electronics Component Manufacturing Policy 2025 published.
• 20 May 2026, English text of the 2025 policy, as first amended, updated on the Invest UP portal.

No last date to apply has been announced. Claims are open while the policy remains in force, subject to the commissioning and claim windows written into the policy document. Because Uttar Pradesh has revised this policy line three times in eight years, and because the 2025 policy is already carrying a First Amendment, check the Invest UP policy page for the current text before you commit capital rather than relying on a summary.

The policy sits alongside a wider cluster of state industrial policies that a component manufacturer may also draw on. The Uttar Pradesh Industrial Investment and Employment Promotion Policy 2022, the MSME Promotion Policy 2022, the Semiconductor Policy 2024, the Data Centre Policy 2026 and the IT and ITeS Policy 2022, all listed at invest.up.gov.in/policies/.

Where do I get help?

Invest UP at invest.up.gov.in is the facilitation point for electronics investors and publishes the policy documents and government orders. The Department of IT and Electronics is the parent department, and the same policy list appears at startinup.up.gov.in under Government Policies. Statutory clearances run through Nivesh Mitra at niveshmitra.up.nic.in.

No dedicated public helpline for electronics component incentive claims is published on the policy page, so use the contact channels on invest.up.gov.in rather than a number sourced from a third-party site. Unresolved grievances can be filed on the Uttar Pradesh Jansunwai portal at jansunwai.up.nic.in, which issues a trackable reference number and routes the matter to the concerned department.

How to check your application status

There is no citizen-style portal login or SMS tracker for this policy, because the applicant is a company, not an individual, and the process runs through institutional facilitation rather than a digital dashboard with a status field.

• Invest UP relationship manager. Once a project is registered with Invest UP, it is typically assigned a facilitation officer or relationship manager who tracks the proposal through policy-level examination, government order issuance and incentive sanction. Follow up with that named contact directly through invest.up.gov.in rather than a general helpline, since no dedicated public number for electronics component claims is published on the policy page.
• Nivesh Mitra clearance tracking. For the NOCs, licences and departmental clearances routed through the single-window system at niveshmitra.up.nic.in, the portal itself shows the stage each individual clearance application has reached, department by department. This tracks clearances, not the incentive claim itself, but a stalled clearance is often the reason an incentive sanction is also stalled.
• Written status requests. For a proposal that has gone quiet, a written status query addressed to the Department of IT and Electronics or to Invest UP, referencing the project registration number, is the standard way large industrial applicants get a documented reply rather than a verbal update.
• Jansunwai as an escalation route, not a routine check. The Uttar Pradesh Jansunwai portal at jansunwai.up.nic.in issues a trackable reference number and routes a grievance to the concerned department. This is meant for a genuinely stuck case, such as a claim sitting unresolved well past a reasonable processing period, not for a routine "where is my file" enquiry.
• Government order (GO) publication. For incentives that require a formal sanction order, the issuance of the government order itself, published through the Department of IT and Electronics or Invest UP channels, is often the clearest confirmation that a claim has been approved, since it is a public document rather than a private portal update.

Because the claim process spans multiple heads (capital subsidy or top-up, land subsidy, stamp duty and electricity duty exemption, interest subsidy, EPF reimbursement, patent reimbursement), a company should expect to track each head separately rather than assume one status covers the whole package; the land subsidy and stamp duty exemption, for instance, depend on the industrial development authority's allotment process rather than on Invest UP or Nivesh Mitra.

Common reasons for rejection

• Product does not map to a defined focus segment. The policy incentivises specific categories: sub-assemblies, bare components, selected bare components, and supply chain or capital equipment items. A proposal describing a finished consumer electronics product, or a component that does not fit cleanly into segments A, B, C or D, gets rejected at the screening stage. The fix is to map the product against the policy's segment list before filing, and if the mapping is ambiguous, raise it with Invest UP in writing before submitting the full project report.
• Lithium-ion cell proposal aimed at storage or mobility. The policy explicitly excludes lithium-ion cells for storage and mobility applications from its incentive head; only cells for digital applications qualify. A proposal for an electric-vehicle or grid-storage cell plant filed under this policy is a mismatch, not a borderline case. The correct route for that investment is the Uttar Pradesh Electric Vehicle Manufacturing Policy 2022, not this one.
• Claiming both the ECMS top-up and the state capital subsidy for the same investment. The 20 percent capital subsidy is specified for units that are not covered under the central ECMS; a unit already drawing the central scheme should be claiming the matching state top-up instead. Filing for both heads on one investment invites rejection of the duplicate claim. Decide the central ECMS position first, then apply for the corresponding state head only.
• Unit not physically located in Uttar Pradesh, or land allotment incomplete. Eligibility requires the manufacturing unit to be set up, expanded or modernised within the state, and the stamp duty exemption and land subsidy specifically depend on land allotment from the relevant industrial development authority. A claim filed before allotment is finalised, or for a facility outside the state, does not qualify.
• Incomplete or uncertified investment documentation. Claims filed after commissioning need chartered-accountant-certified fixed capital investment statements, and head-specific evidence such as bank sanction and interest certificates for the interest subsidy, EPF contribution records for the EPF reimbursement, and patent fee receipts for patent cost reimbursement. A claim missing the relevant certification for the head being claimed is returned rather than processed, so each incentive head should be filed with its own supporting evidence rather than one composite investment figure.
• Missing local sourcing evidence for the strategic boosters. The additional 2 percent for lithium-ion cell manufacturing and 1 percent for multi-layer PCB manufacturing are conditional on local sourcing of digital-application inputs or local laminates respectively. Claiming the booster rate without documented proof of local sourcing results in the claim being assessed at the base rate or rejected outright for that increment.
• Mega package assumptions without negotiation. Investments above Rs 2,000 crore do not receive an automatic incentive rate; the customised package is negotiated case-to-case. A proposal that assumes a specific mega package figure and files claims against it, without that package having actually been negotiated and agreed with the state, will not match what gets sanctioned.