UP Electricity Duty Exemption — 100% Waiver for Logistics Parks
A UP government incentive offering logistics park developers a 100% electricity duty exemption for 10 years under the 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
Uttar Pradesh delivers this incentive through its New UP Warehousing & Logistics Policy 2022, and it is a state government benefit rather than a bank loan or a private investment. A developer building a logistics park in the state can be relieved of 100% of the electricity duty it would otherwise pay, and that relief runs for 10 years counted from the date commercial operations begin.
Electricity duty is a recurring cost for any large warehouse or freight facility, because it is charged on the power actually drawn. Waiving it in full for a decade therefore changes a project's cost structure rather than trimming it at the margins. The state's aim is to make Uttar Pradesh cheaper to operate in than rival logistics destinations, draw private capital into warehousing and freight infrastructure, and create employment around the parks that come up.
The exemption is written into Section 9.3.2 (B) Sl 2 of the policy and forms one part of a wider support package for warehousing and logistics investment. There is no fixed application window — the scheme is rolling and always open — so a developer can move ahead as the project progresses instead of racing a cut-off date. Applications are routed to the nodal agency named in the policy, and the state's online portal at https://niveshmitra.up.gov.in/ is the entry point given for this scheme.
Highlights
- 100% exemption on electricity duty for developers of logistics parks
- Relief runs for 10 years from the start of commercial operations
- Rolling scheme — applications are always open, with no fixed deadline
- Provided under the New UP Warehousing & Logistics Policy 2022, Section 9.3.2 (B) Sl 2
- An exemption on a state levy, not a cash grant — no equity is taken
- Approved after review by a state committee that includes the Industrial Development and Energy departments
Who can apply
The published eligibility is deliberately narrow: this benefit is for Developers of Logistics Park. In other words, the applicant is the entity developing the logistics park project in Uttar Pradesh — not a tenant, an occupier of space inside the park, or an unrelated service provider.
- Who qualifies: developers of logistics park projects.
- Who does not: businesses that merely lease, occupy or service space within a park.
No industry restrictions, startup-stage conditions, entity-type limits or founder-profile requirements are listed for this incentive. Nor is a DPIIT recognition or MSME (Udyam) registration condition recorded anywhere in the scheme's stated eligibility. Treat those as undocumented rather than mandatory, and confirm the final position with the nodal agency or the policy document before you shape an application around them.
Because the sole stated qualifier is being a logistics park developer, the project itself — the park, its investment and its role in the state's logistics network — is what gets assessed.
UP Electricity Duty Exemption — 100% Waiver for Logistics Parks 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 Logistics Parks 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
Eligible developers receive a 100% exemption on electricity duty for a period of 10 years, with the clock starting at the commencement of commercial operations.
- Full waiver: no portion of the electricity duty remains payable by the developer.
- Duration: ten years of relief from the start of commercial operations.
- Regulatory support: delivered within the wider warehousing and logistics policy ecosystem.
In practice, the saving compounds. On a power-heavy facility such as temperature-controlled or automated warehousing, a duty that disappears every month for ten years lowers the operating cost base substantially, strengthens the financial viability of the project, supports a faster return on the capital invested, and improves project profitability over the long run.
The benefit is not a fixed rupee amount — it varies according to the electricity duty that would otherwise fall due — and it arrives as an exemption on a government levy rather than as a cash cheque. It is therefore non-dilutive: the state takes no equity and no share of the business in return for it.
About the provider
UP Electricity Duty Exemption — 100% Waiver for Logistics Parks 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
Approval is not automatic on filing. Applications pass through a multi-stage evaluation.
- Committee review. A committee that includes representatives from the Department of Industrial Development and the Department of Energy examines the application.
- Assessment criteria. The committee weighs how closely the project follows policy guidelines, the investment commitment behind it, and the economic impact it is expected to generate.
- Final approval. Approval is granted on the strength of that evaluation and on how strategically important the logistics park is to the state's wider economic vision.
- Claim after commencement. Once approval is in place and operations have begun, the developer applies for the exemption to be notified or claimed, following the policy's procedural guidelines.
Documents you’ll need
Before you apply to UP Electricity Duty Exemption — 100% Waiver for Logistics Parks, 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
Who can apply for the UP electricity duty exemption?
The scheme is open to Developers of Logistics Park. The applicant is the entity developing the logistics park project in Uttar Pradesh, so the eligibility test centres on the project and the developer behind it rather than on startups, small businesses or occupiers of warehouse space.
How much is the exemption actually worth?
It covers 100% of the electricity duty that the eligible logistics park would otherwise pay. There is no fixed rupee figure attached to the scheme — the amount is listed as varying, because the value depends entirely on how much power the facility draws and what duty would have been payable on it. The heavier the power load, the larger the saving.
For how long does the exemption last, and when does it begin?
The exemption applies for 10 years, and the period is counted from the date commercial operations commence. It is not a one-time rebate — it is a decade-long relief on a recurring operating cost.
Is this a cash grant or a tax-type benefit?
Neither a cheque nor an income tax break. It is an exemption from a government levy — electricity duty — so the developer simply does not pay that duty for ten years. The financial gain shows up as lower operating expenses and better project economics rather than as money credited to an account.
Does the government take equity or a stake in my project?
No. Because this is an exemption on a state levy rather than an investment, it is non-dilutive. The state does not acquire equity, shares or any ownership interest in the logistics park in exchange for the relief.
Is there an application deadline I need to meet?
No. The scheme is rolling and always open, so there is no fixed window or cut-off date to chase. Developers can apply as their project progresses, though approval and the subsequent claim for the exemption are handled in stages.
Do I need DPIIT recognition or MSME registration to claim it?
The scheme's stated eligibility does not record a DPIIT recognition requirement or an MSME (Udyam) registration condition. Eligibility is framed around being a developer of a logistics park, so confirm your specific case with the nodal agency or the policy document before treating any additional registration as necessary.
What documents are typically required?
Applicants are expected to submit a formal application detailing the project and their eligibility, along with supporting documentation. That documentation may include the project report, land acquisition details, incorporation documents, and evidence of the proposed investment. Anything further requested by the nodal agency or the policy document should also be provided.
How and where do I apply?
Applications go to the nodal agency or department named in the policy. The state's online portal at https://niveshmitra.up.gov.in/ is the entry point given for the scheme, and the process runs as follows: submit a formal application setting out the project and eligibility, provide the supporting documentation, await review and approval from the designated state-level committee, and then — once approval is granted and operations have commenced — apply for the exemption to be notified or claimed as per the procedural guidelines.
Which authority reviews and approves the application?
A committee that includes representatives from the Department of Industrial Development and the Department of Energy assesses the project. It looks at adherence to policy guidelines, the investment commitment, and the likely economic impact, and final approval rests on those findings plus the strategic importance of the logistics park to the state's economic vision.
Under which provision of the policy is this incentive granted?
The exemption is set out at Section 9.3.2 (B) Sl 2 of the New UP Warehousing & Logistics Policy 2022, the framework that governs warehousing and logistics incentives in the state.
Who offers UP Electricity Duty Exemption — 100% Waiver for Logistics Parks?
UP Electricity Duty Exemption — 100% Waiver for Logistics Parks 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 Logistics Parks?
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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