UP ETP & DG Set Subsidy 2022: 50% Cost, Up to ₹5 Cr

This incentive sits inside the Uttar Pradesh Textile and Garmenting Policy 2022, at Section 4.4.b, and it addresses a very practical problem. A textile or garmenting unit that begins on a bare site has to create its own pollution-control and standby power infrastructure before production can run reliably.

The Government of Uttar Pradesh therefore shares the capital cost of two specific assets — an Effluent Treatment Plant (ETP) and a Diesel Generator (DG) Set. Both are treated as essential to a compliant and uninterrupted operation, and the state's contribution is designed to make that investment easier to fund at the pre-operational stage.

Because the scheme targets sites that are still undeveloped, its natural audience is promoters building ETP and DG capacity from zero rather than upgrading existing installations. The support comes as a subsidy, which is non-repayable financial assistance.

The wider intent is to keep the state's textile and garmenting growth environmentally sound — treating effluent properly and generating on-site backup power in line with the standards laid down by the Central Pollution Control Board (CPCB), the National Green Tribunal (NGT) and other statutory bodies of the Government of India or Uttar Pradesh. The incentive is administered under the UP Textile and Garmenting Policy 2022, with applications routed through the state's industries machinery.

• Subsidy of up to ₹5 crore per eligible unit
• Covers 50% of the project cost of ETPs and DG Sets
• Meant for units setting up on undeveloped land parcels in Uttar Pradesh
• ETP and DG Set must comply with CPCB / NGT norms
• Non-repayable — the subsidy does not have to be returned
• Rolling / always open — no fixed last date

Eligibility for this subsidy turns on two things: where the unit is being set up, and what it is installing there.

• Undeveloped land: the unit must be establishing its operations on an undeveloped land parcel in Uttar Pradesh.
• What must be installed: the support is specifically for the establishment of an Effluent Treatment Plant (ETP) and a Diesel Generator (DG) Set.
• Compliance: those installations must conform to the norms of the Central Pollution Control Board (CPCB), the National Green Tribunal (NGT), or any other statutory body of the Government of India or the Government of Uttar Pradesh.

The incentive forms part of the UP Textile and Garmenting Policy 2022, so it is directed at units operating within that policy framework. Applicants should refer to the full policy document and its supplementary guidelines for the application route and the enclosures expected with a claim.

UP ETP & DG Set Subsidy 2022: 50% Cost, Up to ₹5 Cr is open to startups at any stage. It is open to startups registered anywhere in India.

UP ETP & DG Set Subsidy 2022: 50% Cost, Up to ₹5 Cr 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.

The support is a capital subsidy on the cost of building the two facilities.

• Coverage: 50% of the project cost of establishing the ETP and DG Set.
• Ceiling: a maximum of ₹5 crore per eligible unit.
• Nature of the support: a subsidy — non-repayable financial assistance, so the amount does not have to be returned.
• Condition attached: the ETP and DG Set must adhere to CPCB, NGT or other statutory norms of the Government of India or Uttar Pradesh.

Since only half the project cost is met by the state, the balance has to be arranged by the applicant unit itself. The rupee value a unit actually receives therefore depends on what its ETP and DG Set installation costs, with ₹5 crore as the outer limit.

The benefit is more than cash relief. Meeting CPCB and NGT standards is a regulatory requirement for running an industrial unit, and this subsidy reduces the upfront burden of getting there — so a new unit can install compliant environmental and power infrastructure without the full cost landing on its own balance sheet.

UP ETP & DG Set Subsidy 2022: 50% Cost, Up to ₹5 Cr 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.

Before you apply to UP ETP & DG Set Subsidy 2022: 50% Cost, Up to ₹5 Cr, 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.

UP ETP & DG Set Subsidy 2022: 50% Cost, Up to ₹5 Cr is best suited for startups in India seeking non-dilutive funding of ₹5Cr. If that describes your startup, review the eligibility criteria above before applying.