UP Capital Subsidy for Textile Units — 25% Up to ₹100 Cr

This is the capital subsidy route built into the state's Textile and Garmenting Policy 2022, run by the Government of Uttar Pradesh. It is aimed at manufacturers who put money into plant and machinery at a unit inside the state, and it works as a reimbursement rather than a loan: a share of what the unit has already spent on eligible machinery comes back to it.

The headline number is 25% of investment in plant and machinery, capped at ₹100 crore for a single unit. Separate from that, businesses located in Poorvanchal or Bundelkhand can claim an additional 10%, a deliberate nudge to pull textile capacity into two of the state's less industrialised belts.

Why it matters: machinery is the single largest upfront cost in textile and garmenting, and this reimbursement softens that outlay, makes modernisation and technology upgradation easier to justify, and improves the unit's cost position against competitors. The state's stated aim is a larger, more competitive textile manufacturing base, supported by jobs — a qualifying unit has to show at least 50 people employed.

There is no closing date to chase. The window stays open, so applications can be made as and when a unit is ready.

• Capital subsidy ceiling of ₹100 crore per unit
• 25% of plant and machinery spend reimbursed
• Extra 10% for Poorvanchal and Bundelkhand locations
• At least 50 people must be employed
• Open round the year — no application deadline
• Cash reimbursement, so no equity is diluted

Eligibility here is decided by what you make, where you make it, and how many people you employ.

• Sector: the unit must be a textile or garmenting manufacturer. Other industries fall outside this policy.
• Location: the unit must be operating inside Uttar Pradesh.
• Employment: the unit must have generated a minimum of 50 jobs.
• Spend: the reimbursement is tied to investment made on the purchase of plant and machinery.

Being in Poorvanchal or Bundelkhand does not change whether you qualify — it changes how much you get, through an additional subsidy rate.

The policy details summarised here do not set out a DPIIT or MSME registration condition, an entity-type restriction, or any founder-level requirement, so none of those act as gates for this subsidy.

UP Capital Subsidy for Textile Units — 25% Up to ₹100 Cr is open to startups at any stage. It is open to startups registered anywhere in India.

UP Capital Subsidy for Textile Units — 25% Up to ₹100 Cr accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

• 25% reimbursement on the amount invested in plant and machinery.
• Additional 10% capital subsidy for units set up in Poorvanchal and Bundelkhand.
• Maximum of ₹100 crore per unit.
• Delivered as a cash reimbursement, not a loan or equity — the state does not take a stake.

The support goes towards offsetting the initial capital expenditure a unit has already committed to machinery. That lowers the burden of setting up or upgrading a plant, which in turn is what the policy is chasing: growth, technology upgradation and more employment in Uttar Pradesh's textile sector.

UP Capital Subsidy for Textile Units — 25% Up to ₹100 Cr is offered by Government of Uttar Pradesh, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

Applications are examined by a committee appointed under the UP Textile and Garmenting Policy 2022.

• Eligibility review: the unit is tested against every criterion laid down in the policy.
• Investment verification: the amount actually spent on plant and machinery is checked.
• Employment confirmation: proof that at least 50 jobs have been generated must be produced.
• Regional preference: units in Poorvanchal and Bundelkhand are given preference when the additional subsidy is considered.
• Further verification: shortlisted units move to later stages, which may involve a site visit or the submission of extra financial records.

Once these checks are cleared and the unit is approved, the eligible subsidy amount is reimbursed.

Before you apply to UP Capital Subsidy for Textile Units — 25% Up to ₹100 Cr, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

UP Capital Subsidy for Textile Units — 25% Up to ₹100 Cr is best suited for startups in India seeking non-dilutive funding of ₹100Cr. If that describes your startup, review the eligibility criteria above before applying.