UP Capital Subsidy for Textile Units — 25% Up to ₹100 Cr — Frequently Asked Questions
Answers to the questions founders most often ask about UP Capital Subsidy for Textile Units — 25% Up to ₹100 Cr — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
How much money does the UP Capital Subsidy actually give a unit?
A qualifying unit is reimbursed 25% of what it invested in plant and machinery, subject to a ceiling of ₹100 crore. Units in Poorvanchal and Bundelkhand get an additional 10% on top of that standard rate. The ₹100 crore figure is the maximum payable per unit.
What does the subsidy cover — can it fund anything other than machinery?
No. The reimbursement is tied specifically to investment made on the purchase of plant and machinery. That is the expenditure the policy recognises for this capital subsidy.
Who is eligible to apply?
Textile and garmenting units operating in Uttar Pradesh are the target. On top of being in the right sector and the right state, a unit must have generated a minimum of 50 jobs. Units based in Poorvanchal or Bundelkhand qualify for an additional subsidy rate rather than a separate eligibility route.
Do units in Poorvanchal and Bundelkhand get better terms?
Yes. On top of the standard 25% reimbursement, units established in the Poorvanchal and Bundelkhand regions are entitled to an additional 10%. They are also shown preference for that additional subsidy during evaluation.
Is there a last date to apply?
There is no closing date. The scheme runs on a rolling, always-open basis, so a unit can apply once it has the investment and employment records in order.
Does the government take equity in my company for this subsidy?
No. This is a subsidy paid as a cash reimbursement, not an investment. The state does not take equity or a stake in the unit, so the funding is non-dilutive.
Do I need DPIIT or MSME registration to be eligible?
The policy terms summarised here do not list a DPIIT or MSME registration condition for this capital subsidy. What the policy gates on is being a textile or garmenting unit in Uttar Pradesh and meeting the 50-job employment requirement.
What documents will I need to put together?
Expect to provide proof of the investment you made in plant and machinery, details of the employment you have generated, and your company incorporation documents. Depending on where you are in the process, the committee may also ask for additional financial documentation.
How and where do I apply?
Start by reading the full UP Textile and Garmenting Policy 2022 document for the detailed application guidelines, then prepare your investment proofs, employment details and incorporation papers. Applications are submitted to the designated state department or authority, and you can apply through the state's single-window Nivesh Mitra portal at https://niveshmitra.up.gov.in/.
What happens to my application after I submit it?
A committee appointed under the UP Textile and Garmenting Policy 2022 reviews it. The committee checks that you meet every eligibility condition, verifies the sum you invested in plant and machinery, and confirms the 50-job employment threshold. Shortlisted units then go through further verification, which can include a site visit or extra financial paperwork. Once approval and verification are complete, the subsidy amount is reimbursed to you.
Who offers UP Capital Subsidy for Textile Units — 25% Up to ₹100 Cr?
UP Capital Subsidy for Textile Units — 25% Up to ₹100 Cr is offered by Government of Uttar Pradesh, a government body. It is provided as non-dilutive funding.
How do I apply for UP Capital Subsidy for Textile Units — 25% Up to ₹100 Cr?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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