Power Tariff Subsidy — Up to ₹3 Cr for PM MITRA Park Units

Electricity is one of the heaviest recurring costs a textile or garmenting factory carries, and Uttar Pradesh has built a dedicated incentive around exactly that. The Power Tariff Subsidy, offered by the Government of Uttar Pradesh as part of the UP Textile and Garmenting Policy 2022, knocks ₹2.00 off every billed unit of power a qualifying manufacturing unit consumes, for a full five years.

The scheme is tied to the PM MITRA Park. Only units operating inside that park, and only those that create at least 50 jobs, can draw the benefit. Power also has to be bought from a licensee utility rather than generated in-house.

At scale the relief is substantial. The payout is capped at ₹60 lakh in any single year, which puts the ceiling at ₹3 crore across the five-year window. The clock starts on the day commercial production begins, so the subsidy follows the unit's actual production life rather than the date of application.

Because this is a subsidy and not an investment, the support comes with no equity dilution and nothing to repay. It is designed to protect the margins and export competitiveness of the state's textile and garmenting manufacturers, and it sits alongside the other incentives bundled into the 2022 policy.

• ₹2.00 per kWh subsidy on billed electricity consumption
• Maximum ₹60 lakh per unit per year, up to ₹3 crore over five years
• Benefit runs for 5 years from the date commercial production begins
• Open only to manufacturing units set up in the PM MITRA Park scheme, Uttar Pradesh
• Requires a minimum of 50 jobs and power purchased from a licensee utility
• Non-dilutive support, with no equity given up and nothing to repay

Location: the unit must be set up within the PM MITRA Park scheme in Uttar Pradesh. This incentive does not extend to textile units located elsewhere in the state.

Employment: the unit has to generate at least 50 jobs. Clearing that threshold is what makes a unit eligible to claim, and the employment position has to stand up when the claim is verified.

Power source: electricity has to be purchased from a licensee utility. Power sourced outside a licensed utility does not qualify.

Timing: the benefit runs for 5 years from the date commercial production starts. A unit must be established in the park and in production before claims can begin.

The policy wording targets units set up inside the PM MITRA Park scheme. A promoter whose unit begins commercial production in the park can work through the same process, while pre-existing units operating outside the park are not the intended beneficiaries.

Registration: the unit also needs to register under the UP Textile and Garmenting Policy 2022 and follow the general guidelines of that policy.

Power Tariff Subsidy — Up to ₹3 Cr for PM MITRA Park Units is open to startups at any stage. It is open to startups registered anywhere in India.

Power Tariff Subsidy — Up to ₹3 Cr for PM MITRA Park Units 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.

• ₹2.00 per billed unit (kWh) of electricity, applied to the unit's consumption over five years.
• ₹60 lakh per annum as the maximum payout to a single unit.
• ₹3 crore as the maximum total benefit across the full five-year term.

The five-year period begins on the date commercial production commences, which means a unit receives relief for the whole stretch of its early operating life rather than a one-off payment.

Since the benefit is calculated against electricity actually consumed, the real amount a unit gets depends on how much power it buys. The annual figure is a ceiling, not a guaranteed sum.

Two forms of support come with the scheme: the cash subsidy itself and the regulatory back-up that comes from being part of a notified state policy administered through official channels. That backing gives units a degree of certainty when they plan long-term capacity or approach lenders and investors.

The money is not a loan and not an equity investment. Nothing has to be repaid, and no shareholding is taken, so the entire value of the subsidy stays with the promoter.

Power Tariff Subsidy — Up to ₹3 Cr for PM MITRA Park Units 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.

Claims are handled by the nodal agency or department that implements the UP Textile and Garmenting Policy 2022. The route runs in this order:

• Register under the policy. The unit first registers under the UP Textile and Garmenting Policy 2022 and complies with the general guidelines of that policy.
• Set up and start production. The unit is established inside the PM MITRA Park, commences commercial production, and meets the minimum employment of 50.
• File the claim. A formal application goes to the nodal agency with supporting documentation, typically including proof of establishment in the PM MITRA Park, electricity bills from a licensee utility, official records showing when commercial production began, and employment data that can be verified.
• Verification and approval. The authorities scrutinise the documents and the claim against every eligibility condition before clearing them.
• Disbursement. Once approved, the subsidy is applied against the unit's electricity consumption over the five-year period, subject to the annual ceiling.

Before you apply to Power Tariff Subsidy — Up to ₹3 Cr for PM MITRA Park Units, 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.

Power Tariff Subsidy — Up to ₹3 Cr for PM MITRA Park Units is best suited for startups in India seeking non-dilutive funding of ₹3Cr. If that describes your startup, review the eligibility criteria above before applying.