Subsidy
UP MSME Promotion Policy
The Uttar Pradesh Micro, Small and Medium Enterprises Promotion Policy 2022 supports new MSME manufacturing units and substantial expansions across the state. It was promulgated on 28 September 2022 for five years or until a new policy is notified.
Capital subsidy on plant & machinery and building
| Region | Micro | Small | Medium |
|---|---|---|---|
| Bundelkhand & Purvanchal | 25% | 20% | 15% |
| Madhyanchal & Paschimanchal | 20% | 15% | 10% |
Paid in two instalments, with a maximum of ₹4 crore per unit. SC/ST and women entrepreneurs receive an additional 2%. Land is not an eligible cost head for the subsidy.
Other incentives under the policy
- Interest subsidy (micro units): 50% of interest on the term loan for five years, up to ₹25 lakh; 60% for SC/ST and women entrepreneurs (with at least 51% ownership).
- Stamp duty exemption: 100% in Bundelkhand and Purvanchal, 75% in Madhyanchal and Paschimanchal, 50% in Gautam Buddh Nagar and Ghaziabad, and 100% for women entrepreneurs anywhere.
- EPF reimbursement: 100% of the employer's EPF contribution for five years.
- CGTMSE fee: borne by the state for eligible loans up to ₹2 crore.
- Quality and IP: 75% of quality certification costs (up to ₹5 lakh) and 75% for patents and GI (up to ₹10 lakh).
- Environment and capital markets: 50% support for common effluent treatment plants (up to ₹10 crore) and zero liquid discharge systems (up to ₹75 lakh), and 20% of SME IPO costs (up to ₹5 lakh).
Conditions to plan for
- An expansion qualifies only if it increases both gross block and installed capacity by at least 25%.
- Only one state policy can be used for the same investment, so compare this policy with sector policies (such as food processing) before applying.
- Applications are made through Nivesh Mitra or the District Industries Centre.
The department's Udyami Launchpad refers to this policy as 'revised'. We could not verify a formal amendment notification, so we confirm the current terms against the latest GO for each application.
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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