Uttar Pradesh Incentive Policy 2023 — Industrial Investment Capital Subsidy (FDI/FCI and Fortune 500 Policy)

What is the Uttar Pradesh Incentive Policy 2023?

Uttar Pradesh Incentive Policy 2023 is the state's dedicated industrial investment incentive package for large foreign and Fortune 500 investors. Its full official name on the Invest UP portal is the "UP FDI/FCI, Fortune Global 500 and Fortune India 500 Companies Investment Promotion Policy 2023", and Invest UP describes it as a first-of-its-kind initiative in India, a policy written specifically to attract global capital rather than to support small enterprises or individuals.

The policy is administered by the Infrastructure and Industrial Development Department, Government of Uttar Pradesh, with Invest UP acting as the implementing agency and the Nivesh Mitra single window portal handling applications. The headline benefit is a capital subsidy of 25 to 35 percent of eligible capital investment, tiered by region so that the poorest parts of the state: Bundelkhand and Purvanchal; attract the highest rate.

Readers should be clear about one thing before going further: this is not a welfare scheme. There is no citizen benefit, no monthly payment and no household eligibility. The smallest qualifying investment under the policy is Rs 100 crore.

Who is eligible for the Uttar Pradesh Incentive Policy 2023?

Invest UP sets out two qualifying routes for manufacturing and service units.

Companies that can claim incentives:

• The FDI/FCI route; projects with foreign capital investment of at least Rs 100 crore. Foreign capital investment is defined broadly: equity through preference shares, debentures, external commercial borrowings, standby letters of credit, letters of guarantee and other debt securities, together with modes approved under RBI Circular No. FED/2018-19/67 dated 26 March 2019 as amended. At least 10 percent of the Rs 100 crore must be in equity, with the balance through debt and other instruments.
• The Fortune 500 route, projects with capital investment of more than Rs 100 crore by companies appearing in the updated Fortune Global 500 or Fortune India 500 list published up to the date of application.

Who cannot apply:

• Individuals, proprietorships, farmers, students and self-help groups are not eligible. No part of this policy provides a personal or household benefit.
• Micro, small and medium enterprises below the Rs 100 crore threshold cannot apply under this policy. Smaller units are covered by separate Uttar Pradesh policies such as the MSME Promotion Policy and the sector policies for textiles, food processing and warehousing.
• Companies in negative list sectors are not eligible on the Fortune 500 route. Invest UP names tobacco, alcohol, iron and steel, cement, beverages and logistics among the excluded activities.
• Domestic companies outside the Fortune lists that bring no foreign capital do not qualify, however large the investment.

How much money does the capital subsidy actually give?

The capital subsidy is calculated on eligible capital investment (ECI) excluding the cost of land, provided the unit sits on land belonging to an Industrial Development Authority. Where the unit is built elsewhere, land cost is added back into ECI.

The subsidy is released in seven equal annual instalments, with an annual ceiling of Rs 100 crore. A project in Purvanchal with Rs 1,000 crore of eligible capital investment would therefore accrue Rs 350 crore of capital subsidy, drawn down at Rs 50 crore a year over seven years.

What other incentives come with the policy?

Invest UP lists a full package alongside the capital subsidy:

• Front-end land subsidy; subsidised land allotment by Industrial Development Authorities at 25 percent in Paschimanchal and Madhyanchal and 20 percent in Bundelkhand and Purvanchal. The state government later reimburses the IDAs 75 percent and 80 percent respectively. IDAs also allot an area equal to 50 percent of the gram sabha land made available to them free of cost, to eligible projects at acquisition cost only.
• SGST incentives; either 100 percent net SGST reimbursement for 10 years, capped at 10 percent of ECI a year, or a refund of input SGST paid on capital goods in five equal annual instalments where an inverted duty structure blocks input tax credit. Companies taking the second option must reverse the credit in their SGST ledger to the extent refunded.
• Stamp duty and registration to 100 percent exemption or reimbursement.
• Electricity duty — 100 percent exemption for five years.
• Skill development subsidy, reimbursement of training cost for up to 500 persons at Rs 5,000 per person per month for five years per project.
• Green industry incentive. A one-time capital subsidy of 50 percent of the cost of an Effluent Treatment Plant at the plant premises, or Rs 2.5 crore, whichever is lower, paid in a lump sum when the ETP starts operating.
• Industrial housing to 10 percent of the cost of developing workers' housing, dormitories and related collective facilities within a 10 km radius of the unit, or Rs 10 crore, whichever is lower, in seven equal annual instalments.
• Logistics subsidy to 50 percent reimbursement of transportation cost, up to Rs 2 crore per unit, for firms shifting existing plants into Uttar Pradesh from international or domestic locations, paid as a lump sum after commercial operations begin.
• Patent fee reimbursement, a one-time 75 percent reimbursement, capped at Rs 10 lakh for a domestic patent and Rs 20 lakh for an international patent.
• R&D support to 25 percent of the cost of a standalone R&D centre up to Rs 10 crore for projects investing at least Rs 20 crore, released 50 percent on approval, 25 percent after three years and 25 percent on achieving committed results in five years. Alternatively, a Centre of Excellence grant of 50 percent of project cost up to Rs 10 crore per project.

How to apply for incentives under the Uttar Pradesh Incentive Policy 2023

Applications run entirely through Nivesh Mitra, the Uttar Pradesh single window system. The Government of Uttar Pradesh has mandated that industrial and business applications be accepted only through this portal.

1. Open niveshmitra.up.nic.in and use the Know Your Approvals and Incentives wizard to confirm which clearances and which incentive package apply to the proposed project.
2. Register the company and activate the account on the portal using the authorised signatory's details.
3. Fill the Common Application Form (CAF), the one-time information form that feeds every subsequent application, and attach the certificate of incorporation, land documents and Detailed Project Report.
4. Submit the incentive application through the "Apply for Incentives" module, selecting the FDI/FCI or Fortune 500 route and the district, which determines whether the 25, 30 or 35 percent rate applies.
5. Respond to any departmental query within the notified window. Nivesh Mitra permits only one query on an application, and it must be raised within seven days of submission.
6. Track the application on the dashboard. Nivesh Mitra sends automated SMS and email notifications at each stage and provides online status tracking.
7. File the claim after commercial production begins, supported by a chartered accountant's certificate of eligible capital investment, to start the seven-instalment capital subsidy cycle.

There is no offline counter application for these incentives, and no district office accepts a paper form for them.

How do companies check the status of an incentive claim?

Nivesh Mitra provides real-time application tracking from the investor dashboard, along with automated notifications at each processing stage and a chatbot-based grievance management system. Invest UP separately runs a Track Your Investment facility and a Nivesh Sarathi investor relationship service for large projects. Companies should keep the CAF reference number from the single window portal, since every incentive claim and clearance is threaded to it.

Why do incentive claims get rejected or delayed?

• Investment falls short of Rs 100 crore once land cost or ineligible items are stripped out of the claimed figure.
• The foreign capital structure does not meet the 10 percent equity floor, so the FCI route fails even though the total is Rs 100 crore.
• The company is not in the current Fortune list on the date of application. The policy requires the updated list published up to that date.
• The activity falls in the negative list, tobacco, alcohol, iron and steel, cement, beverages or logistics.
• Departmental query not answered in time. Nivesh Mitra allows one query within seven days; an unanswered query stalls the file.
• Claim documents not certified. The chartered accountant's certification of eligible capital investment is what the subsidy is computed on, and an uncertified statement is returned.

Key dates and current status

Uttar Pradesh notified the policy through a government order issued in 2023, and Invest UP has published a Standard Operating Procedure for processing applications received under it. The department issued an amendment to the policy in November 2024, a notification remitting the registration fee chargeable under the policy in January 2024, and a March 2024 order confirming the 100 percent electricity duty rebate for five years for eligible projects that become operational within five years of the policy's promulgation. No closing date for applications has been announced.

Where to get help

• Invest UP, 6th Floor, Block A, PICUP Bhawan, Lucknow, Uttar Pradesh 226010
• Phone: +91-522-3129570
• Call centre and 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
• Grievances: the Query and Grievance Redressal module on niveshmitra.up.nic.in

Registration on Nivesh Mitra is free, and Invest UP's helpdesk assistance carries no charge. No consultant is required to file an incentive application, and no official will ask for a payment outside the consolidated fee shown on the portal.