Uttar Pradesh Textile and Garmenting Policy 2022 Capital Subsidy

What is the Uttar Pradesh Textile and Garmenting Policy 2022?

Uttar Pradesh Textile and Garmenting Policy 2022 is the state's sector incentive package for textile, garment, silk and sericulture manufacturing. According to the policy document published by Invest UP, it was framed with the objective of attracting fresh investment of about Rs 10,000 crore over five years, and the nodal agency named for it is the Directorate of Textile under the Department of Handloom and Textiles, Government of Uttar Pradesh.

Uttar Pradesh has a deep textile base. The policy document names Varanasi, Bhadohi, Gautam Budh Nagar, Kanpur, Lucknow and Sitapur as districts already known for textile exports. The 2022 policy replaces the incentive framework of the earlier Uttar Pradesh Handlooms, Powerlooms, Silk, Textile and Garmenting Policy 2017, and adds specific provisions for PM MITRA Parks and for young entrepreneurs entering weaving, design and marketing.

The single most important number in the policy is the capital subsidy on plant and machinery, which runs from 15 percent to 35 percent depending on employment and location, capped at Rs 100 crore per unit.

Who is eligible for the Uttar Pradesh Textile and Garmenting Policy 2022?

Units that can claim incentives:

• New textile and garmenting units set up anywhere in Uttar Pradesh.
• Existing units undertaking expansion or diversification, provided the new investment exceeds 25 percent of the existing gross value of fixed capital and the previously installed capacity rises by at least 25 percent. Both conditions must be met together.
• Silk and sericulture units; chaaki worm rearing, koya production, reeling and spinning, under the dedicated silk component.
• Developers of private integrated textile and apparel parks of at least 25 acres, and developers and first buyers in a PM MITRA Park.
• Qualified young entrepreneurs, specifically three-year diploma holders from an Indian Institute of Handloom Technology and graduates in textile, textile design, fashion design or fashion branding and marketing.

Who cannot apply:

• Individuals looking for a personal cash benefit are not eligible. Every component of the policy funds a unit, a park, a company or a documented self-employment project, not household income support.
• Existing units that fail either the 25 percent investment test or the 25 percent capacity test cannot apply as expansion cases.
• Weavers without the specified diploma or degree cannot claim the youth self-employment incentives, which are tied to an IIHT diploma or a relevant graduate qualification.
• Units outside the textile, garmenting, silk and sericulture value chain are not eligible, however closely related their product may seem.

How much is the capital subsidy on plant and machinery?

Employment is therefore the pivot. A unit that crosses 50 workers moves from 15 percent to 25 percent, and the same unit located in Purvanchal or Bundelkhand reaches an effective 35 percent.

What are the land, stamp duty and infrastructure benefits?

• Land cost subsidy to 25 percent of the cost of land purchased from Government Development Authorities, reduced to 15 percent in Gautam Budh Nagar district. This subsidy is separately capped at 10 percent of total project cost.
• Stamp duty exemption to 100 percent on land, shed or industrial building purchased or leased from state or central government or their undertakings, reduced to 75 percent in Gautam Budh Nagar district. Developers of PM MITRA Parks and private textile and apparel parks get 100 percent outside Gautam Budh Nagar. The first buyer of a plot gets 100 percent in a PM MITRA Park and 50 percent in a private textile park.
• Infrastructure subsidy to 50 percent of project cost for self-use road, drainage, water supply and power supply up to Rs 3 crore; 50 percent for an Effluent Treatment Plant and DG sets up to Rs 5 crore; 25 percent for an in-house training facility, testing laboratory, quality certification lab or R&D centre up to Rs 2.5 crore; and 25 percent for staff quarters, worker hostel or dormitory up to Rs 5 crore.
• Private textile park incentive to 50 percent of project cost excluding land, up to Rs 50 crore per park, for an integrated textile and apparel park of at least 25 acres with plug-and-play facilities and a CETP. The park must house at least 10 units, and no single unit may hold more than 40 percent of the available area.

What are the power, employment and export incentives?

• Electricity duty to 100 percent exemption for new textile and garmenting units for 10 years. Open access of electricity is permitted to units and parks consuming above the threshold under the Electricity Act, 2003.
• PM MITRA Park power tariff subsidy, Rs 2.00 per unit for five years to units employing at least 50 persons, capped at Rs 60 lakh per annum per unit.
• Employment generation subsidy — Rs 3,200 per worker per month for five years to mega garmenting units in all districts except Gautam Budh Nagar and Ghaziabad. The policy document restricts this to mega garmenting units that cumulatively set up the first 15,000 sewing machines.
• Interest subsidy to 60 percent of annual interest paid on loans for plant and machinery eligible under TUFS or ATUFS, for seven years, capped at Rs 75 lakh a year per unit in Gautam Budh Nagar and Rs 1.5 crore a year per unit elsewhere.
• Freight reimbursement, for new garmenting units, freight from unit to port is reimbursed at 75 percent for two years, 50 percent for the next two years and 25 percent in the fifth year.

What does the policy give silk and sericulture units?

• 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 bank loan. For SC and ST entrepreneurs this rises to 20 percent.
• 20 percent capital subsidy for silk reeling units investing Rs 1 crore or more.
• 5 percent interest subsidy on working capital for five years, capped at Rs 50,000 a year, for silk reeling units producing at least 75 percent of their thread from koya produced in Uttar Pradesh.

What support exists for young entrepreneurs and marketing?

• Weaving to 75 percent of project cost up to Rs 20 lakh to install 5 to 20 handlooms, or up to Rs 60 lakh to install 5 to 10 power looms, for three-year IIHT diploma holders.
• Garmenting and home furnishing, for textile, textile design and fashion design graduates, 50 percent of flatted factory rent for five years plus 75 percent of plant, machinery and infrastructure cost up to Rs 25 lakh.
• Design studio to 75 percent of project cost up to Rs 30 lakh per entrepreneur.
• Marketing company to 75 percent of registration fee and infrastructure cost up to Rs 50 lakh per company, including facilities for online sales.
• Export house to 75 percent of registration fee and infrastructure cost up to Rs 20 lakh per entrepreneur.
• Own-brand retail chain; Rs 2 crore for 50 outlets with Rs 4 crore annual sales, Rs 4 crore for 100 outlets with Rs 8 crore sales, Rs 8 crore for 200 outlets with Rs 16 crore sales and Rs 10 crore for 500 outlets with Rs 20 crore sales. At least 80 percent of the outlets must be outside Uttar Pradesh, and an additional Rs 2 crore is payable on opening 25 or more outlets outside India with Rs 2 crore of annual sales from them.
• Buyer-seller meets. The Department of Handloom and Textiles organises two a year, and an export body organising its own meet gets 50 percent of event cost reimbursed up to Rs 10 lakh per meet.

How to apply for the Uttar Pradesh Textile and Garmenting Policy 2022 subsidy

1. Open niveshmitra.up.nic.in and run the Know Your Approvals and Incentives wizard, choosing the Handloom and Textile sector, to see the exact clearances and incentives for the proposed unit.
2. Register on Nivesh Mitra and activate the account, then complete the Common Application Form with the firm's constitution, promoter details and proposed district.
3. Attach the Detailed Project Report, land documents and the plant and machinery schedule, making sure the projected employment figure is stated clearly, since 50 workers is the threshold between 15 and 25 percent.
4. Obtain the licences and NOCs required for the unit through the same portal and pay the consolidated fee.
5. Commence commercial production, then file the incentive claim with machinery invoices, payment proof, the chartered accountant's investment certificate and employment records.
6. Track the claim on the Nivesh Mitra dashboard and respond to the single departmental query, which must be raised within seven days of submission.

Applicants who are more comfortable offline can take the same documents to the District Industry Centre or the district textile office for help preparing the file, but the application itself must be submitted online.

Why claims are rejected, and how to fix them

• Employment figure not substantiated. The 25 percent rate needs proof of more than 50 workers. EPF and ESI returns are the evidence the department accepts.
• Expansion case fails one of the two tests. Both the 25 percent investment threshold and the 25 percent capacity increase must be certified; meeting only one leads to rejection.
• Land bought from a private seller. The land cost subsidy and the stamp duty exemption apply to land purchased or leased from Government Development Authorities, not from private parties.
• Machinery not TUFS or ATUFS eligible, which disqualifies the interest subsidy even though the capital subsidy may still be payable.
• Missing chartered accountant certification of fixed capital investment, which is the basis of the subsidy computation.
• Query left unanswered on Nivesh Mitra within the permitted window.

Key dates and amendments

Invest UP published the policy highlights in October 2022 and the English policy document dated 2 November 2022. The department issued a Standard Operating Procedure on 15 April 2023, four energy-related government orders on the same date, and an amendment to the SOP on 7 November 2024. The Hindi policy text on the portal was last updated on 11 November 2024. No closing date for applications has been notified.

Where to get help

• Invest UP, 6th Floor, Block A, PICUP Bhawan, Lucknow 226010
• Phone: +91-522-3129570; call centre 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
• Nodal department: Directorate of Textile, Department of Handloom and Textiles, Government of Uttar Pradesh

Registering on Nivesh Mitra and applying for incentives is free apart from the statutory consolidated fee shown on the portal. No agent is needed, and no official may demand a payment outside that fee.

How to check your application status

The Nivesh Mitra portal is the single system of record for this policy, so status checking happens in the same place the claim was filed, not through a separate tracking tool.

1. Log in at niveshmitra.up.nic.in with the credentials created at registration, not a fresh account. Applicants who lose their login should use the portal's password recovery option rather than registering again, since a duplicate registration splits the case history across two accounts.
2. Open the applicant dashboard and locate the specific application, whether it is a Common Application Form, a licence or NOC request, or the post-production incentive claim. Each of these carries its own status line, so an approved CAF does not mean the later incentive claim has moved.
3. Read the status field carefully. A case sitting at "query raised" needs the applicant to respond, and the policy's own timeline gives the department seven days to raise a single consolidated query after submission, so a long silence after that window is worth following up on rather than assuming it is still under review.
4. Use the Query and Grievance Redressal module on the same portal if the status has not moved for an unreasonable period, or if a query response was submitted but the dashboard still shows it as pending. This module routes the complaint to the department handling the file rather than a general helpdesk queue.
5. Call the Invest UP helpline on +91-522-3129570, or the helpdesk on 0522-3117976, during working hours (9:30 AM to 6:00 PM, Monday to Saturday) if the online status is unclear or the portal itself is inaccessible. Have the application or acknowledgement number ready, since the helpline works off that reference rather than the applicant's name.
6. Email info@investup.org.in for a written follow-up, useful when the applicant needs a documented trail of the query, for instance when a claim has been pending well beyond the department's own response window.
7. Visit the District Industry Centre or the district textile office as a last resort for cases stuck for a long period. These offices cannot change the portal record themselves, but they can escalate a specific file to the department, which is useful when the online grievance route has not produced a response.

Because the capital subsidy claim is filed only after commercial production begins, its status tracking matters most in the months after installation, when the chartered accountant's investment certificate and employment records are under departmental review. Applicants should keep the acknowledgement number, the date the query window opened, and copies of every document uploaded, since a status dispute is resolved faster with that paper trail in hand than by re-explaining the case from scratch on a call.