UP Textile Electricity Duty Exemption — 10-Year Captive Power Relief

The Electricity Duty Exemption for Captive Power Plants is one of the incentives written into the UP Textile and Garmenting Policy 2022 and is offered by the Government of Uttar Pradesh. It does not put money in a founder's bank account — instead it removes a recurring statutory charge. Qualifying businesses stop paying electricity duty on the power they generate for themselves, and that relief continues for a decade.

New textile and garment making units locating in the state are the intended beneficiaries. Power is one of the heaviest running costs in spinning, processing and garment production, so dropping the duty on self-generated electricity trims the cost of every hour a plant operates and sharpens the unit's price competitiveness in a crowded market.

There is an energy-security logic here too. When captive generation becomes cheaper to run, manufacturers have a stronger reason to build and maintain their own power assets. That cuts dependence on purchased grid supply and supports more self-sufficient, sustainable energy use across the state's industrial clusters.

The incentive does not carry a fixed rupee figure — its worth tracks how much electricity a unit produces and uses itself. Applications are accepted on a rolling basis, so there is no closing window to wait for. The governing text is the UP Textile and Garmenting Policy 2022, where this incentive appears at Section 4.6.b.

• Ten years of exemption from electricity duty
• Meant for new textile and garmenting units based in Uttar Pradesh
• Covers power from the unit's own captive power plant
• Self-consumption only — power sold elsewhere is out of scope
• No fixed payout; the value depends on how much power the unit generates and uses
• Rolling applications with no deadline

The exemption is built for newly established textile and garmenting manufacturing units that have set up operations in Uttar Pradesh.

• The unit must be new — the incentive is tied to fresh textile or garmenting capacity rather than long-running plants.
• It must run its own Captive Power Plant.
• The power generated has to be consumed in-house for self-use; electricity sold or supplied elsewhere falls outside the scheme.
• The unit has to be located in Uttar Pradesh.

Read together, these conditions mean the benefit follows the unit's own generation and its own consumption. A unit that buys all its electricity from the grid, or one that generates power mainly to sell, does not fit the design of this incentive.

UP Textile Electricity Duty Exemption — 10-Year Captive Power Relief is open to startups at any stage. It is open to startups registered anywhere in India.

UP Textile Electricity Duty Exemption — 10-Year Captive Power Relief 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 a qualifying unit receives is relief from a recurring statutory charge rather than a grant or a loan disbursement.

• Ten years of relief from electricity duty on the power produced by the unit's own captive plant.
• The waiver covers only electricity the unit consumes itself; it is not a rebate on power bought from outside.
• Nothing is taken in return — no equity is diluted and no amount has to be repaid. The benefit is a waiver, not financing.
• Because the duty disappears from the power cost for a full decade, the saving repeats every year the plant runs, improving margins and leaving more capital inside the business.
• By making captive generation cheaper to operate, the scheme also encourages units to invest in their own power capacity and work toward greater energy self-sufficiency.

UP Textile Electricity Duty Exemption — 10-Year Captive Power Relief 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.

Approval is not automatic — an application has to clear verification by the relevant state department.

• Eligibility check: reviewers confirm that the applicant is a new textile or garmenting unit, that it operates a Captive Power Plant, and that the electricity generated is used only for self-consumption.
• Document review: the papers filed with the application are examined against each of these conditions.
• Site visits: where the authorities consider it necessary, they may inspect the premises to validate what the applicant has claimed.
• Final approval: the exemption is sanctioned only if the unit meets the terms and conditions set out in the UP Textile and Garmenting Policy 2022.

Before you apply to UP Textile Electricity Duty Exemption — 10-Year Captive Power Relief, 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.