UP Electricity Duty Exemption — 100% Waiver for 10 Years

Uttar Pradesh runs this incentive as part of its Textile and Garmenting Policy 2022. New textile and garmenting manufacturing plants set up in the state can operate with no electricity duty at all for 10 years — a full 100% waiver covering the entire period.

Electricity is one of the largest recurring costs in spinning, weaving, processing and garment production. By taking duty off the power bill, the state government lowers the cost of running a plant every month rather than handing over a single lump sum, which improves margins and leaves more cash for machinery, technology and hiring.

There is no fixed rupee value attached to the support — the saving depends entirely on how much power a unit consumes. The 10-year clock starts from the date the unit begins commercial operations, so the benefit applies to live production rather than the construction phase.

The scheme is open on a rolling basis for as long as the policy is in force, and no equity dilution is involved: this is a state subsidy, not an investment. Applications go to the designated state industrial department or nodal agency, with the Nivesh Mitra single-window portal (niveshmitra.up.gov.in) acting as the online entry point.

• 100% exemption from electricity duty on power consumption
• Runs for 10 years from the date of commercial operation
• Only for new textile and garmenting units in Uttar Pradesh
• No fixed amount — savings vary with actual electricity use
• Rolling applications with no deadline, and no equity taken
• Offered under the UP Textile and Garmenting Policy 2022

Who can apply: newly established textile and garmenting manufacturing units located in Uttar Pradesh.

• The unit must be new. The policy is written for fresh units, and existing, already-operating textile or garmenting businesses cannot claim the exemption.
• Only textile and garmenting manufacturing operations are covered by this incentive.
• The unit has to be set up within Uttar Pradesh.
• Business structures named in the policy include private limited companies, LLPs, partnerships, proprietorships and one-person companies.
• The relief applies to the unit's own power consumption once it is commercially operational.
• Applicants must be able to show proof of establishment and declare that the unit qualifies as new, and filings are checked for compliance with the policy guidelines.

The detailed conditions sit in the Uttar Pradesh Textile and Garmenting Policy 2022 document, which applicants are expected to consult before filing.

UP Electricity Duty Exemption — 100% Waiver for 10 Years is open to startups at any stage. It is open to startups registered anywhere in India.

UP Electricity Duty Exemption — 100% Waiver for 10 Years 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.

100% exemption from electricity duty for 10 years.

• The entire duty on the unit's electricity consumption is waived for a decade, so the plant pays no electricity duty during that window.
• The value is not a fixed sum. Because the relief is calculated on actual power usage, a unit with a heavier load saves more, and the benefit scales with production.
• The 10-year period runs from the date the unit starts commercial operations.
• Lower energy overheads improve cash flow and profitability, and the money saved can be ploughed back into expansion, equipment upgrades or building the workforce.
• It is a subsidy, so no equity or stake is taken in the business in return.

This waiver is one of the core fiscal incentives of the UP Textile and Garmenting Policy 2022.

UP Electricity Duty Exemption — 100% Waiver for 10 Years 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 follow the process laid down for the scheme:

• Read the policy first. Interested units are expected to go through the Uttar Pradesh Textile and Garmenting Policy 2022 document for the detailed eligibility conditions and application procedure.
• File a formal application with the designated state industrial department or nodal agency.
• Attach supporting documents, typically proof of the unit's establishment, business registration, project details, and a declaration confirming the unit is new.
• Scrutiny. Officials examine the application for compliance with the policy guidelines.
• Grant of exemption. Once verification is successful, the exemption is approved for the 10-year period, reducing the electricity duty payable on the unit's power consumption.

Before you apply to UP Electricity Duty Exemption — 100% Waiver for 10 Years, 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.