UP Textile Electricity Duty Exemption — 10-Year Captive Power Relief — Frequently Asked Questions
Answers to the questions founders most often ask about UP Textile Electricity Duty Exemption — 10-Year Captive Power Relief — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
What exactly does this scheme give a textile or garmenting unit?
It waives electricity duty for ten years on the electricity a unit produces through its own Captive Power Plant and consumes itself. In practical terms, a recurring charge disappears from the unit's power cost for a decade.
How much money is on offer?
There is no fixed rupee amount. The benefit is a duty exemption, so what a unit saves depends entirely on how much electricity it generates and uses in-house. A larger, more power-hungry operation naturally saves more than a small one.
Who is eligible to claim it?
New textile and garmenting units that have been established in Uttar Pradesh, that operate a Captive Power Plant, and that use the electricity generated for self-consumption within the unit. All of these conditions have to be met together.
Is this a cash grant or a loan?
Neither. It is an exemption from a duty, which brings down running costs but does not involve any cash being handed over. It is also non-dilutive — no equity is taken and nothing needs to be repaid.
Is there an application deadline?
No. Applications are treated as rolling, meaning the scheme is always open and there is no last date by which a unit must file.
Do I need DPIIT recognition or MSME registration to apply?
The eligibility conditions attached to this incentive do not list DPIIT recognition or MSME registration among the requirements. What the scheme looks at is whether the unit is a new textile or garmenting unit in Uttar Pradesh, whether it runs a Captive Power Plant, and whether the power produced is used for self-consumption.
For how long is the exemption valid, and from when does it start?
The exemption runs for ten years. As set out in the policy, the period is counted from the date the new unit commences production.
What documents are typically needed?
The usual set includes proof that the unit is established as a new textile or garmenting unit in Uttar Pradesh, detailed plans and operational licences for the Captive Power Plant, and records or projections of the electricity consumed for self-use. Applicants should check the policy guidelines for the exact list.
Where do I apply and where can I read the full policy?
Applications for the exemption are filed with the designated state authority — generally the Department of Energy or the Department of Industries of the Government of Uttar Pradesh, as specified in the policy guidelines — and the state portal linked here is niveshmitra.up.gov.in. The full policy document, UP Textile and Garmenting Policy 2022, is available on the Invest UP website, and Section 4.6.b covers this particular incentive.
Can I claim this if I buy my power from the grid?
No. The exemption is tied to captive generation — the electricity has to come from the unit's own Captive Power Plant and be consumed by the unit itself.
Does UP Textile Electricity Duty Exemption — 10-Year Captive Power Relief take equity?
No. UP Textile Electricity Duty Exemption — 10-Year Captive Power Relief is subsidy and is non-dilutive — the provider does not take an equity stake in your startup.
Who offers UP Textile Electricity Duty Exemption — 10-Year Captive Power Relief?
UP Textile Electricity Duty Exemption — 10-Year Captive Power Relief is offered by Government of Uttar Pradesh, a government body. It is provided as non-dilutive funding.
How do I apply for UP Textile Electricity Duty Exemption — 10-Year Captive Power Relief?
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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