Subsidy
UP Industrial Investment & Employment Promotion Policy
The Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022 (IIEPP) is the state's main incentive framework for large manufacturing investments. It was notified by GO dated 4 November 2022 and runs until 3 November 2027.
Investment categories
Categories are based on eligible capital investment (ECI).
| Category | Eligible capital investment |
|---|---|
| Large | ₹50 crore to ₹200 crore |
| Mega | ₹200 crore to ₹500 crore |
| Super Mega | ₹500 crore to ₹3,000 crore |
| Ultra Mega | ₹3,000 crore and above |
Choose one of three options
The policy lets an eligible unit choose one of three main incentive options: a capital subsidy, a net SGST reimbursement, or a top-up on a central PLI incentive. The choice should be modelled on your own cash flows, because the options pay out over very different periods.
Option 1: Capital subsidy on ECI
| Region | Large | Mega | Super Mega | Ultra Mega |
|---|---|---|---|---|
| Gautam Buddh Nagar & Ghaziabad | 10% | 18% | 20% | 22% |
| Madhyanchal & Paschimanchal | 12% | 20% | 22% | 25% |
| Bundelkhand & Poorvanchal | 15% | 22% | 25% | 30% |
The subsidy is paid in instalments over 10, 12, 15 and 20 years for Large, Mega, Super Mega and Ultra Mega units respectively, subject to annual caps of ₹5 crore, ₹10 crore, ₹50 crore and ₹150 crore. Boosters of 2–4% each are available for employment, exports and ecosystem development.
Options 2 and 3, and other incentives
- Option 2, net SGST reimbursement: 100% of net SGST reimbursed for 6, 12, 14 or 16 years by category, subject to annual and overall caps expressed as a percentage of ECI, which vary by region.
- Option 3, PLI top-up: for units approved under a central PLI scheme, a state top-up of 30% of the central PLI, capped at 100% of ECI.
- Stamp duty exemption: 100% in Bundelkhand and Poorvanchal, 75% in Madhyanchal and Paschimanchal, 50% in Gautam Buddh Nagar and Ghaziabad.
- Other support: R&D (25%, up to ₹10 crore) and IPR (50%, up to ₹1 crore), among other components.
How the incentive is claimed
- 1
Apply on Nivesh Mitra
Through the IIEPP incentive services, with project details, investment schedule and the option chosen.
- 2
Letter of Comfort
The state issues a Letter of Comfort recording the eligible incentives.
- 3
Implement and claim
After commercial production, claims are filed periodically with audited investment and, for Option 2, tax data.
Sources
Scheme terms change; verify on the official portal; last checked 2 Oct 2026. This page is general information for planning, not a guarantee of eligibility, sanction or disbursement. See our Terms of Use & Disclaimer.
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