Introduction: UP Industrial Investment & Employment Promotion Policy 2022

Uttar Pradesh (UP) has emerged as one of India’s fastest-growing investment destinations. Through the UP Industrial Investment & Employment Promotion Policy 2022, the state aims to attract large-scale manufacturing, logistics, industrial parks, MSMEs, and high-value investments by offering capital subsidies, SGST reimbursements, stamp duty exemptions, PLI top-ups, R&D support, and incentives for private industrial parks.

A complete financial assessment and expert insights tailored for investors, manufacturers, developers, and entrepreneurs.

As Finraja Consultancy Private Limited, we specialize in end-to-end subsidy management, including policy evaluation, eligibility mapping, financial modelling, documentation, and complete assistance until disbursement.

Overview of the UP Industrial Investment & Employment Promotion Policy 2022

The policy focuses on:

• Increasing industrial investment
• Improving ease of doing business
• Boosting employment
• Strengthening UP’s logistics, industrial, and export ecosystem
• Supporting large, mega, super mega, and ultra mega projects
• Encouraging private industrial park development

The policy offers high-impact financial incentives such as

• Investment Promotion Subsidy UP
• Capital Subsidy UP Industrial Subsidy
• SGST Reimbursement UP Subsidy
• PLI Top-Up Subsidy UP Subsidy
• Private Industrial Park Subsidy UP
• Stamp Duty Exemption UP Industrial Subsidy

Investors can choose ONE of the three major investment promotion subsidy options, making professional financial modeling extremely important.

UP Industrial Subsidy Eligibility 2022 – Who Can Benefit?

Before entering the financial assessment, understanding eligibility is essential. The policy categorizes industries into investment-based groups:

Project Categories

• Large Projects: ₹50 Cr – ₹200 Cr
• Mega Projects: ₹200 Cr – ₹500 Cr
• Super Mega Projects: ₹500 Cr – ₹3,000 Cr
• Ultra Mega Projects: Above ₹3,000 Cr

Each category receives:

• Different subsidy ceilings
• Region-based multipliers
• Different Eligible Investment Period (EIP)

The Eligible Capital Investment (ECI) includes:

• Building cost
• Plant & machinery
• Utilities
• Infrastructure
• Technical civil works

This is the backbone of subsidy calculations.

Capital Subsidy – (High Benefit for Asset-Heavy Industries)

This is ideal for:

• Manufacturing plants
• Engineering units
• Specialized product units
• Technology/automation-intensive industries

What You Get

• A base capital subsidy (%) is applied depending on:
  • Region
  • Project size
  • Project category (Large to Ultra Mega)

Payment Format

Paid annually using the Gross Capacity Utilisation Multiple (GCM), rewarding industries that operate efficiently.

Financial Advantage

• Beneficial for units with high upfront capital cost
• Especially valuable in districts with higher regional multipliers

SGST Reimbursement – (Strong for High-Turnover Businesses)

Suitable for:

• FMCG
• Chemicals
• Pharmaceuticals
• Food processing
• Large-scale manufacturing with consistent sales

What You Get

• A percentage of Net SGST reimbursement annually
• Annual ceilings AND overall ceilings differ by region

Financial Advantage

Projects in priority zones can achieve the following:

• Up to 100% annual reimbursement
• Overall financial ceilings equivalent to 200–300% of ECI depending on region

PLI Top-Up Subsidy – (High-End Benefit for PLI Beneficiaries)

Ideal for:

• Electronics manufacturing
• EV components
• Specialty steel
• Advanced manufacturing

What You Get

• 30% PLI top-up subsidy on Government of India PLI incentives
• Overall top-up capped at 100% of Eligible Capital Investment (ECI)

Units already qualified for PLI receive a massive accelerant incentive, making UP one of the most rewarding destinations for large PLI projects.

Private Industrial Park Subsidy UP – High-Value Incentive for Developers

The UP policy strongly promotes new private industrial parks through powerful capital subsidies.

Financial Benefits

• 25% capital subsidy on eligible park infrastructure
• Subsidy caps vary by park size & region:
  • 20–30 acres: ₹40–45 Cr

• 100 acres: Up to ₹80 Cr

Hostel/Dormitory Capital Subsidy

• 25% subsidy
• Cap: ₹25–50 Cr

Stamp Duty Exemption

• Up to 100% exemption depending on district category

Stamp Duty Exemption UP Industrial Subsidy – Region-Based Advantage

Financial Benefits

Stamp duty exemption varies:

• 100% in Bundelkhand & Poorvanchal
• 75% in Madhyanchal & Paschimanchal
• 50% in Gautam Buddh Nagar & Ghaziabad

Land acquisition is a major cost for industries.
 A 50–100% exemption dramatically reduces the initial project burden.

Eligible Capital Investment (ECI) – Core Element in Subsidy Calculation

Every major incentive—capital subsidy, SGST reimbursement, and PLI top-up—is calculated based on ECI.

ECI includes:

• Buildings
• Civil works
• Plant & machinery
• Utilities
• Technical infrastructure

Accurate classification is essential because wrong inclusion/exclusion can reduce subsidy by crores.

Finraja ensures ECI is structured to maximize subsidy value for the investor.

Mega & Super Mega Project Subsidy UP – Special Benefits

Larger projects enjoy:

• Higher subsidy ceilings
• Longer eligible investment periods
• Priority in approvals
• Additional incentives for:
  • Infrastructure
  • Exports
  • Utilities

Eligible Investment Period

• Large: 4 years
• Mega: 5 years
• Super Mega: 7 years
• Ultra Mega: 9 years

The longer window allows investors to spread investment and still claim maximum subsidy.

Conclusion

The UP Industrial Investment & Employment Promotion Policy 2022 is one of India’s strongest state incentive frameworks, offering:

• Capital subsidy
• SGST reimbursement
• PLI top-up
• Stamp duty exemption
• Industrial Park incentives
• Mega/Super mega benefits
• ECI-focused subsidy calculations

With correct structuring, industries can reduce total project cost by 25–60%.

If you are planning an industrial, manufacturing, logistics, or park development project in Uttar Pradesh, Finraja Consultancy can help you secure the maximum subsidy under the UP Industrial Investment & Employment Promotion Policy 2022.

Call us now: +91 9373114747 or visit finraja.com/contact for quick assistance.