UP Capital Subsidy Scheme 2022 — ₹5 Cr to ₹210 Cr Per Year
A Government of Uttar Pradesh capital subsidy for Large to Ultra-Mega industrial projects, covering 10–30% of eligible capital investment with annual payouts from ₹5 crore up to ₹210 crore.
- Funding amount
- ₹5Cr – ₹210Cr (subsidy)
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
Industrial units that put substantial capital into Uttar Pradesh can claim back a share of that spend under the Capital Subsidy. It is Option 1 of the Investment Promotion Subsidy under the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022, and it is administered by the Government of Uttar Pradesh.
The incentive is built around four project tiers — Large, Mega, Super Mega and Ultra-Mega — and is meant to lower the cost of setting up or expanding industrial capacity inside the state. Instead of a single lump-sum cheque, it works as a multi-year payout that is tied to how much eligible capital a unit actually invests and how much it produces once it is operational.
Two design features stand out. The subsidy is calculated as a share of Eligible Capital Investment (ECI), so deeper investments draw larger support. The yearly amount is then adjusted by a Gross Capacity Utilisation Multiple (GCM), which links the payout to real output rather than to a stated intention. Project category and regional development needs also feed into the ceiling.
Alongside the cash incentive, the wider policy provides regulatory and administrative backing for setting up and running a unit. There is no fixed application window — proposals are accepted on a rolling basis.
Highlights
- Annual subsidy ranging from ₹5 crore to ₹210 crore
- Base Capital Subsidy of 10% to 30% of Eligible Capital Investment
- Built for Large, Mega, Super Mega and Ultra-Mega industrial projects
- Employment, Exports and Ecosystem boosters worth 2–4% of ECI for Mega and above categories
- Paid in yearly instalments across 10 to 20 years, linked to capacity utilisation
- Applications accepted on a rolling basis through the state portal
Who can apply
Eligibility here is defined by the size of the project, not by the founder's background or the sector. The scheme is open to industrial undertakings that fall into one of four tiers: Large, Mega, Super Mega or Ultra-Mega projects.
In practice, these categories describe ventures that are committing significant new capital investment in Uttar Pradesh — typically to establish a new industrial unit or to expand an existing one.
- A unit has to reach the relevant tier in terms of committed eligible capital investment to qualify.
- Early-stage startups would generally need to scale to one of these project definitions before they can access the subsidy.
- The scheme details available do not lay down separate DPIIT or MSME registration conditions, sector restrictions, entity-type limits or founder requirements — eligibility rests on the project category.
Because the scheme is run by the Government of Uttar Pradesh, the investment itself is expected to be made within the state.
UP Capital Subsidy Scheme 2022 — ₹5 Cr to ₹210 Cr Per Year is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
UP Capital Subsidy Scheme 2022 — ₹5 Cr to ₹210 Cr Per Year 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 the funding covers
The core benefit is a Base Capital Subsidy of 10% to 30% of Eligible Capital Investment (ECI). The exact percentage depends on the project's category and region, and the money is released across 10 to 20 years rather than in one payment.
The yearly payout is capped:
- Annual ceiling of ₹5 crore to ₹150 crore, set by project category and region.
- Each year's figure is multiplied by a Gross Capacity Utilisation Multiple (GCM), so the amount received tracks actual plant performance.
Boosters for Mega and above projects:
- Three additional Capital Subsidy boosters are available — Employment, Exports and Ecosystem development.
- Each booster is worth 2–4% of ECI.
- With boosters included, the annual ceiling can rise to as much as ₹210 crore.
Beyond the cash, the scheme sits inside a policy framework that also offers regulatory and administrative support for industrial setup and operations.
About the provider
UP Capital Subsidy Scheme 2022 — ₹5 Cr to ₹210 Cr Per Year 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.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Approval is not automatic — each proposal is assessed before an entitlement is issued.
- Submission. The application goes in through the designated state channel, accompanied by the project proposal and investment details.
- Committee review. A committee made up of officials from the Department of Industrial Development and other relevant state agencies examines the proposal.
- Evaluation criteria. The committee weighs how far the project complies with policy guidelines, the size of the eligible capital investment, the employment the unit is expected to generate, and the overall economic impact on the state.
- Booster assessment. For Mega and above categories, the project is also assessed against the criteria for the Employment, Exports and Ecosystem boosters.
- Entitlement Certificate. Once approved, the unit receives an 'Entitlement Certificate' that sets out the subsidy terms and conditions.
- Disbursement. Annual payments then begin, released against the agreed milestones and the unit's capacity utilisation figures.
Documents you’ll need
Before you apply to UP Capital Subsidy Scheme 2022 — ₹5 Cr to ₹210 Cr Per Year, 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.
Who this is best for
UP Capital Subsidy Scheme 2022 — ₹5 Cr to ₹210 Cr Per Year is best suited for startups in India seeking non-dilutive funding of ₹5Cr – ₹210Cr. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
What is the UP Capital Subsidy Scheme 2022 and who runs it?
It is a capital subsidy offered by the Government of Uttar Pradesh as Option 1 of the Investment Promotion Subsidy under the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022. Its purpose is to encourage industrial units to set up or expand operations in the state by offsetting a portion of their capital expenditure. The wider policy also aims to draw investment into Uttar Pradesh and create employment.
How much subsidy can an industrial unit actually receive?
The Base Capital Subsidy is 10% to 30% of Eligible Capital Investment. The annual ceiling runs from ₹5 crore to ₹150 crore depending on the project category and region. If a Mega or above project also qualifies for the Employment, Exports and Ecosystem boosters, the annual ceiling can stretch to as much as ₹210 crore.
What is the Eligible Capital Investment and how does the Gross Capacity Utilisation Multiple affect my payout?
Eligible Capital Investment (ECI) is the capital base on which your subsidy percentage is calculated. The yearly amount you receive is then multiplied by a Gross Capacity Utilisation Multiple (GCM), which means the payout moves with how much your plant is actually producing. A unit that runs below its rated capacity earns less in that year than one that runs at full utilisation.
Who is eligible for the Capital Subsidy?
Industrial undertakings in the Large, Mega, Super Mega and Ultra-Mega project categories. Eligibility is set by the scale of the investment, so a unit needs to reach one of those tiers in terms of committed eligible capital investment in Uttar Pradesh. The scheme details do not list any separate sector-wise, entity-type or founder-based restrictions.
Is this scheme open to early-stage startups?
Broadly speaking, no. The scheme is written for industrial undertakings, and the four eligible categories — Large, Mega, Super Mega and Ultra-Mega — describe ventures making significant new investments rather than early-stage companies. A startup would generally have to scale up to one of those project definitions before it could apply.
Does the scheme take equity or require repayment?
No. This is a subsidy, not an equity investment, so it does not dilute the promoter's shareholding. It is a cash incentive paid out against eligible capital investment and operational performance, not a lending product that has to be repaid.
How is the subsidy paid out — all at once or in instalments?
It is paid in yearly instalments spread over 10 to 20 years. Each year's disbursement is subject to the applicable annual ceiling and is adjusted by the Gross Capacity Utilisation Multiple. Payments begin after approval and are released against agreed milestones and the unit's capacity utilisation data.
What are the Capital Subsidy Boosters and who gets them?
Projects in the Mega category and above can access additional Capital Subsidy 'Boosters' in three areas: Employment, Exports and Ecosystem development. Each booster is worth 2–4% of Eligible Capital Investment. Taken together with the base subsidy, they can lift the annual ceiling up to ₹210 crore.
Is there a deadline to apply?
No. The scheme runs on a rolling basis, meaning there is no fixed closing date and applications can be submitted at any time through the official channel.
How do I apply, and what will I need to submit?
Applications go through the official state portal or the designated agency of the Government of Uttar Pradesh, which is typically Udyog Bandhu or the Department of Industrial Development; the online portal is at https://niveshmitra.up.gov.in/. You will generally need a detailed project proposal, your investment plans and proof of eligible capital investment, and your project must be registered with the state government. Once payments begin, you are also expected to supply capacity utilisation data for each annual disbursement. Applicants should read the full Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022 document for the exact instructions and forms.
Is DPIIT recognition required for UP Capital Subsidy Scheme 2022 — ₹5 Cr to ₹210 Cr Per Year?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for UP Capital Subsidy Scheme 2022 — ₹5 Cr to ₹210 Cr Per Year, though having it can strengthen your application and unlock other benefits.
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