UP Electricity Duty Exemption — 100% Waiver for ICD, CFS & AFS Projects
Logistics infrastructure projects in Uttar Pradesh — Integrated Container Depots, Container Freight Stations and Air Freight Stations — can claim a full electricity duty exemption for 10 years under the state's New UP Warehousing & Logistics Policy 2022.
- Funding amount
- Varies by program
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
Power is one of the heaviest recurring costs for any large cargo-handling facility, and Uttar Pradesh has chosen to remove it altogether for one specific class of logistics project. Through the New UP Warehousing & Logistics Policy 2022, the Government of Uttar Pradesh offers a full waiver of electricity duty lasting 10 years to eligible Integrated Container Depots (ICDs), Container Freight Stations (CFSs) and Air Freight Stations (AFSs).
The incentive sits inside a wider state effort to strengthen warehousing and freight movement. Because it works by cancelling a statutory charge instead of handing over a one-time cheque, the relief keeps flowing for as long as the facility operates — and its rupee value scales with each project's own duty liability rather than being fixed in advance.
The intended outcome is threefold: freight infrastructure becomes cheaper to run, cargo moves through the state more efficiently, and the logistics sector grows as an employer. There is no closing date attached. The incentive operates on a rolling basis under the policy framework, and applications are routed through the state portal at niveshmitra.up.gov.in.
Highlights
- 100% electricity duty exemption for eligible logistics projects
- The benefit continues for 10 years
- Open to Integrated Container Depots, Container Freight Stations and Air Freight Stations
- Granted under the New UP Warehousing & Logistics Policy 2022
- Rolling applications — no fixed deadline
- Non-repayable: it is an exemption, not a loan and not an equity investment
Who can apply
Eligibility here is decided by the type of facility being set up, not by the founder's background or the company's funding stage. A project must fall into one of three categories:
- Integrated Container Depots (ICDs)
- Container Freight Stations (CFSs)
- Air Freight Stations (AFSs)
The project has to be located in Uttar Pradesh, and it must satisfy the terms and conditions laid down in the New UP Warehousing & Logistics Policy 2022. The designated authority confirms all of this during review.
Beyond the project category, the published scheme details do not spell out extra filters such as company stage, industry certification, DPIIT recognition or MSME registration, and no separate founder-level conditions are listed.
UP Electricity Duty Exemption — 100% Waiver for ICD, CFS & AFS Projects is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
UP Electricity Duty Exemption — 100% Waiver for ICD, CFS & AFS Projects 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.
What the funding covers
The support arrives as relief on a statutory charge rather than as a cash payout:
- 100% exemption from electricity duty for eligible ICD, CFS and AFS projects.
- The exemption remains in force for 10 years.
- Nothing is disbursed upfront, so the rupee value differs from project to project and mirrors each facility's own electricity duty liability.
- The saving lands straight on operating costs, which improves the financial viability of running freight infrastructure in the state.
Within the policy this counts as regulatory support and facilitation — it is not a repayable instrument. Nothing has to be returned, and no equity changes hands in exchange for the benefit.
About the provider
UP Electricity Duty Exemption — 100% Waiver for ICD, CFS & AFS Projects 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.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
There is no competitive round, shortlisting or pitch stage attached to this incentive. Applications are examined by the designated authority working under the New UP Warehousing & Logistics Policy 2022.
The review has two parts. First, the authority verifies that the project genuinely falls within the ICD, CFS or AFS category. Second, it checks that the applicant meets every term and condition attached to the policy.
Once those checks are cleared and the project is found compliant, the exemption is sanctioned and runs for the duration specified in the policy.
Documents you’ll need
Before you apply to UP Electricity Duty Exemption — 100% Waiver for ICD, CFS & AFS Projects, 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.
Frequently asked questions
What does this scheme actually give a logistics project?
It cancels the electricity duty that an eligible project would otherwise pay, and it does so in full. The exemption applies to Integrated Container Depots, Container Freight Stations and Air Freight Stations in Uttar Pradesh, and it stays in place for 10 years. Rather than receiving a sum of money, the project simply stops paying that particular charge.
How much money is involved?
There is no fixed figure. The published amount is listed as varying, because the value of the benefit depends on how much electricity duty the individual project would have owed. A facility with heavier power consumption stands to save more, so the exemption's worth is calculated against each project's own liability.
Which projects in Uttar Pradesh qualify?
Three categories of freight infrastructure qualify: Integrated Container Depots (ICDs), Container Freight Stations (CFSs) and Air Freight Stations (AFSs). The project must be based in Uttar Pradesh and must comply with the terms and conditions set out in the New UP Warehousing & Logistics Policy 2022.
How long does the exemption last?
The exemption is granted for a period of 10 years. The policy fixes when that clock starts — it refers to the commencement of commercial operations, or such other point as the policy specifies — so the ten-year window is measured from the milestone the policy prescribes rather than from the date of application.
Is this money repayable? Does the government take equity?
No on both counts. The benefit is classified as a subsidy delivered in the form of an exemption on electricity duty, which makes it a non-repayable benefit rather than a grant or a loan. Nothing has to be paid back, and the state does not acquire a stake in the business in return.
Do I need DPIIT recognition or MSME registration to claim it?
The scheme details published for this incentive centre on the category of project being set up — an ICD, CFS or AFS in Uttar Pradesh — and do not list DPIIT recognition or MSME registration among the stated criteria. Applicants should nonetheless check the current policy guidelines to confirm which registrations, if any, the implementing authority asks for at the time of submission.
What is the deadline to apply?
There isn't one. The scheme runs on a rolling, always-open basis, so applications are not tied to a fixed closing date or a particular application window. A project can approach the designated authority under the policy at any point during the policy period.
What documents will I need to submit?
The documentation is prescribed by the New UP Warehousing & Logistics Policy 2022 itself rather than by a separate shortlist. Applicants are expected to prepare all the paperwork the policy requires for claiming incentives, attach it to the application, and submit the complete set to the designated authority so that the eligibility verification can proceed.
How and where do I apply?
Applications follow the procedure laid down in the New UP Warehousing & Logistics Policy 2022. The application is submitted to the designated authority named in the policy, along with the required documentation, and is then reviewed and approved by the policy's implementing agency. The state application portal is available at https://niveshmitra.up.gov.in/.
Why is the Uttar Pradesh government offering this exemption?
The state wants to draw investment into warehousing and logistics infrastructure. By easing a significant operating cost, the incentive is meant to make Uttar Pradesh more competitive as a logistics hub, help cargo move more smoothly through the state, and support employment in the sector — all of which feed into wider economic development.
Who is eligible to apply for UP Electricity Duty Exemption — 100% Waiver for ICD, CFS & AFS Projects?
UP Electricity Duty Exemption — 100% Waiver for ICD, CFS & AFS Projects is open to startups at any stage. It is open to startups registered anywhere in India.
Who offers UP Electricity Duty Exemption — 100% Waiver for ICD, CFS & AFS Projects?
UP Electricity Duty Exemption — 100% Waiver for ICD, CFS & AFS Projects is offered by Government of Uttar Pradesh, a government body. It is provided as non-dilutive funding.
How do I apply for UP Electricity Duty Exemption — 100% Waiver for ICD, CFS & AFS Projects?
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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