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

FAQ

Answers to the questions founders most often ask about Power Tariff Subsidy — Up to ₹3 Cr for PM MITRA Park Units — who qualifies, the funding amount, required documents and how the application works.

Frequently asked questions

What does the Power Tariff Subsidy actually pay for?

It reduces the electricity bill of a qualifying manufacturing unit. The scheme gives ₹2.00 per billed unit (kWh) of power consumed, so the subsidy is calculated against the unit's electricity usage rather than paid as a flat lump sum. It is one of the incentives notified under the UP Textile and Garmenting Policy 2022.

Who can apply for this subsidy?

It is open to manufacturing units established within the PM MITRA Park scheme in Uttar Pradesh. Two further conditions apply: the unit must purchase electricity from a licensee utility, and it must generate at least 50 jobs. The unit also has to register under the UP Textile and Garmenting Policy 2022 and follow that policy's general guidelines.

How much can a single unit receive in total?

The per-unit rate is ₹2.00 per kWh. Payouts are capped at ₹60 lakh in any one year, and since the benefit lasts five years, the maximum a single unit can receive over the whole term works out to ₹3 crore. The annual ₹60 lakh figure is a ceiling, so actual receipts depend on how much power the unit consumes.

How long does the subsidy run, and when does it start?

The benefit is available for a continuous period of 5 years. That window opens on the date the unit commences commercial production, not on the date of application, so setting up early in the park effectively starts the clock.

Is there a minimum hiring requirement?

Yes. The unit must generate employment for a minimum of 50 people. This is a stated eligibility condition, so the jobs created need to be genuine and verifiable when the claim is examined.

Does the unit have to buy electricity from a particular source?

Yes. Power has to be purchased from a licensee utility for the consumption to qualify. Captive generation or power procured outside a licensed utility is not covered by this subsidy.

Is this a loan or an equity investment? Do I give up shares?

Neither. It is a subsidy, which means the support is non-dilutive — no equity stake is taken in the business and no amount has to be repaid. The unit simply receives a reduction on its electricity tariff for the specified period, subject to the annual cap.

Is there a deadline to apply?

No fixed closing date applies. The scheme runs on a rolling, always-open basis, so a unit that has commenced commercial production in the PM MITRA Park and meets the employment condition can initiate its claim without waiting for an application window.

What documents are needed to file a claim?

The claim is typically supported by proof of the unit's establishment within the PM MITRA Park, electricity bills from a licensee utility, official records confirming the date commercial production began, and verifiable employment data showing the minimum of 50 jobs. Registration under the UP Textile and Garmenting Policy 2022 is part of the process as well.

How and where do I apply?

Units register under the UP Textile and Garmenting Policy 2022 and submit a formal application to the nodal agency or department responsible for implementing the policy, through the state's official portal at https://niveshmitra.up.gov.in/. The documents are then verified by the authority, and once approved the subsidy is applied to the unit's electricity consumption.

Can a unit that already exists outside the park claim this subsidy?

The policy is written for units set up in the PM MITRA Park scheme that generate minimum employment of 50, with the benefit measured from the date commercial production commences. That framing points to newly established or relocated units operating inside the park rather than pre-existing units located elsewhere. A unit would need to commence commercial production within the park to qualify.

Is DPIIT recognition required for Power Tariff Subsidy — Up to ₹3 Cr for PM MITRA Park Units?

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Power Tariff Subsidy — Up to ₹3 Cr for PM MITRA Park Units, though having it can strengthen your application and unlock other benefits.

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

Power Tariff Subsidy — Up to ₹3 Cr for PM MITRA Park Units is offered by Government of Uttar Pradesh, a government body. It is provided as non-dilutive funding.

How do I apply for Power Tariff Subsidy — Up to ₹3 Cr for PM MITRA Park Units?

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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