UP Electricity Duty Exemption — 100% Waiver for ICD, CFS & AFS Projects — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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/.

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.

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.

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.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.