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UP Development Charges Exemption Scheme — 75% Relief for Logistics Parks

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Quick answer

A subsidy from the Government of Uttar Pradesh that exempts 75% of the development charges payable by developers building Logistics Parks in the state, offered under the New UP Warehousing & Logistics Policy 2022.

Funding amount
Varies by program
Funding type
Subsidy
Provider
Government of Uttar Pradesh (Government)
Application deadline
Rolling
Eligible stage
Any stage
Location
Open to startups registered in India

Overview

The UP Development Charges Exemption Scheme is a state subsidy from the Government of Uttar Pradesh that lowers the cost of putting up warehousing and logistics infrastructure. It is one of the incentives bundled into the New UP Warehousing & Logistics Policy 2022, and what it promises is straightforward: a developer setting up a Logistics Park in the state can have 75% of the applicable development charges exempted. Applications run on a rolling basis for as long as the policy remains in force.

Development charges are the fees local authorities levy on developers to fund the public infrastructure and services that a new project needs. On a large Logistics Park, that bill is significant, and it generally falls due before the project starts earning. Removing three-quarters of it cuts the capital a developer must commit upfront, which makes such projects easier to finance and faster to move from plan to execution.

The scheme exists because Uttar Pradesh wants to establish itself as a major warehousing and logistics hub. By making park development more financially workable, the policy aims to draw private investment into modern logistics infrastructure, support economic growth and generate employment. It also fits the state's wider effort to strengthen industrial infrastructure and improve ease of doing business, reinforcing UP's pitch as a base for logistics and manufacturing enterprises.

The exemption is not claimed separately from the rest of the policy — it is part of the same proposal, scrutiny and approval route that a Logistics Park follows under the 2022 policy, ending in a formal sanction from the state.

Highlights

  • 75% of development charges exempted for Logistics Park projects
  • Open to developers setting up new Logistics Parks in Uttar Pradesh
  • Offered under the New UP Warehousing & Logistics Policy 2022
  • Rolling applications — no fixed deadline while the policy is in force
  • Reviewed by a multi-department state committee before sanction
  • Delivered by the Government of Uttar Pradesh as a subsidy, not equity

Who can apply

Eligibility here is built around the project rather than the promoter's profile.

  • Who can apply: developers who are setting up a new Logistics Park inside Uttar Pradesh.
  • Policy compliance: the applicant has to satisfy every provision and requirement laid down in the New UP Warehousing & Logistics Policy 2022.
  • Project definition: the proposed park must meet the definition and criteria that the policy sets for a Logistics Park.

The stated eligibility does not attach a DPIIT registration condition, an MSME registration condition, a founder-side requirement, a sector restriction or a list of approved districts or cities. The deciding question is whether the Logistics Park project itself qualifies under the 2022 policy.

UP Development Charges Exemption Scheme — 75% Relief for Logistics Parks 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 Development Charges Exemption Scheme — 75% Relief for Logistics Parks 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 benefit is a 75% exemption from the development charges otherwise payable on a Logistics Park project in Uttar Pradesh.

  • Three-quarters of that charge is removed, which directly reduces the capital expenditure a developer has to arrange before work begins.
  • A smaller upfront outlay improves the project's overall economics and makes it easier to take from approval to execution.
  • The relief scales with the charges levied on the particular project, so the money saved varies from one park to another.
  • It is delivered as regulatory and fiscal support rather than an investment, so the developer does not part with any ownership in the project.

For a developer weighing a warehousing or logistics park in the state, this exemption is one of the cost-side incentives that make the project more viable on paper and more attractive to financiers.

About the provider

UP Development Charges Exemption Scheme — 75% Relief for Logistics Parks 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 handled as a standalone application. The exemption is reviewed as part of the wider appraisal of projects under the New UP Warehousing & Logistics Policy 2022.

  1. Proposal and incentive application: The developer prepares a detailed project proposal covering the park's scope, location, investment and operating plan, and files a formal application for the incentives, including the development charge exemption, with the nodal agency designated by the Government of Uttar Pradesh.
  2. Scrutiny and verification: The proposal and application are examined by the relevant state departments and committees to confirm that they comply with the policy's guidelines and criteria.
  3. Committee evaluation: A committee with representatives from the concerned government departments — such as Industrial Development, Infrastructure and Logistics — assesses the project's viability, its alignment with the policy's objectives and the impact it would have on the state's logistics ecosystem.
  4. Approval and sanction: Once verification and the committee review are cleared, the exemption is sanctioned and the developer is formally notified of the approved benefits, after which the project can proceed with a reduced development charge liability.

Documents you’ll need

Before you apply to UP Development Charges Exemption Scheme — 75% Relief for Logistics Parks, 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.

Frequently asked questions

What is the UP Development Charges Exemption Scheme?

It is a subsidy offered by the Government of Uttar Pradesh under the New UP Warehousing & Logistics Policy 2022. A developer who sets up a Logistics Park in the state can have 75% of the development charges on that project exempted, which brings down the upfront cost of building the park.

How much relief does the scheme provide?

The exemption covers 75% of the applicable development charges on an approved Logistics Park project. Because the charge itself is calculated project by project, the actual amount saved varies from one project to another — the scheme does not carry a flat, fixed payout.

Who is eligible to apply?

The scheme is open to developers who are establishing new Logistics Parks within Uttar Pradesh. Two conditions apply: the applicant must comply with all the provisions of the New UP Warehousing & Logistics Policy 2022, and the proposed park must meet the definition and criteria the policy sets out for a Logistics Park.

Does my project have to be in a specific district of Uttar Pradesh?

The park has to be located in Uttar Pradesh, since the scheme is a state policy incentive. The published criteria do not restrict it to particular districts or cities, so the real test is whether the project qualifies as a Logistics Park under the New UP Warehousing & Logistics Policy 2022.

Is there a deadline to apply?

No individual deadline is set for this exemption. Applications are accepted on a rolling basis, which means a developer can apply as long as the New UP Warehousing & Logistics Policy 2022 stays in force.

Do I need DPIIT or MSME registration to claim the exemption?

Neither registration appears in the scheme's stated eligibility criteria. What matters is that you are a developer setting up a Logistics Park in Uttar Pradesh and that the project conforms to the requirements of the 2022 policy.

Does the scheme take equity in my project?

No. This is a subsidy in the form of an exemption from development charges, not an equity investment, so it does not dilute the developer's ownership or give the state a stake in the Logistics Park.

What does the application process involve?

You prepare a detailed project proposal describing the park's scope, location, investment and operational plan, then file a formal application for the incentives — including this development charge exemption — with the nodal agency designated by the Government of Uttar Pradesh. The submission is scrutinised and verified by the relevant state departments and committees. If it clears that review, the exemption is sanctioned and you are formally notified of the approved benefits.

Where do I apply?

Applications go through the state's official portal at https://niveshmitra.up.gov.in/. The exemption is not a separate filing — it is claimed as part of the same proposal and incentive application that a Logistics Park submits under the New UP Warehousing & Logistics Policy 2022.

Who decides whether my Logistics Park gets the exemption?

A committee made up of representatives from the concerned government departments, such as Industrial Development, Infrastructure and Logistics, reviews the application. The committee looks at the project's viability, how well it adheres to the policy's objectives and the contribution it would make to the state's logistics ecosystem before a decision is taken.

Who offers UP Development Charges Exemption Scheme — 75% Relief for Logistics Parks?

UP Development Charges Exemption Scheme — 75% Relief for Logistics Parks is offered by Government of Uttar Pradesh, a government body. It is provided as non-dilutive funding.

More funding from Government of Uttar Pradesh

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