UP Electricity Duty Exemption — 100% Waiver for Logistics Parks — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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