UP Handloom & Powerloom Subsidy for IIHT Diploma Holders — Up to ₹60 Lakh — Frequently Asked Questions

The subsidy covers 75% of your total project cost. The ceiling is ₹20 lakh per person or group for handloom units and ₹60 lakh per person or group for power loom units. Because it is a percentage-of-cost subsidy with a cap, the exact figure depends on how much your proposed unit costs to build.

You need to have completed a three-year diploma from the Indian Institute of Handloom Technology (IIHT). Alongside that, you must be setting up new weaving-related employment and installing either 5 to 20 handlooms or 5 to 10 power looms in a shed within Uttar Pradesh. Individuals and groups can both apply, since the cap is specified per person or group.

No. The scheme runs on a rolling basis, which means applications are accepted continuously rather than against a fixed closing date. You can submit once your project proposal and documents are ready.

No. This is a subsidy, so the government does not take a stake in your unit and the money does not have to be repaid. That said, since 75% of the project cost is subsidised, you are expected to arrange the remaining 25% yourself.

The eligibility criteria for this particular scheme revolve around your IIHT diploma, the type of weaving activity you are starting, and the number of looms installed in a shed. The scheme does not list DPIIT recognition or MSME registration as qualifying conditions. Business registration proofs are among the documents you would typically submit with the application.

Applications generally require your IIHT diploma certificate, proof of identity, proof of address, documents showing ownership or lease of the land or shed where the unit will be set up, and other business registration proofs. You should also prepare a full project proposal with financial projections, machinery details and an operational plan.

It is limited to Uttar Pradesh. The scheme is an incentive under the UP Textile and Garmenting Policy 2022, so the handloom or power loom unit must be established within the state to qualify.

The scheme provides for two separate tracks with different caps — ₹20 lakh for handloom projects and ₹60 lakh for power loom projects — and your installation must match the corresponding band, either 5 to 20 handlooms or 5 to 10 power looms. Your application should reflect the single project you are establishing.

Applications are made through the Uttar Pradesh government's Nivesh Mitra portal at https://niveshmitra.up.gov.in/. Before applying, review the UP Textile and Garmenting Policy 2022 guidelines document (English_Version_UPTextile-Garmenting-Policy2022_021122.pdf) for the detailed instructions and the specific forms, then submit the complete package to the designated department or nodal agency.

A committee or designated authority within the UP Department of Textiles and Garmenting reviews the applications. The review focuses on your IIHT eligibility, the viability and scope of the proposed unit, and the completeness of your proposal and documents. The policy does not specify a fixed approval timeline, and disbursement happens after approval, usually following verification of milestones or completion.

The aim is to turn IIHT-trained talent into business owners. By removing the initial capital barrier, the state hopes to create new weaving units, generate employment and strengthen the handloom and power loom ecosystem at the grassroots level, in line with the UP Textile and Garmenting Policy 2022.

UP Handloom & Powerloom Subsidy for IIHT Diploma Holders — Up to ₹60 Lakh is offered by Government of Uttar Pradesh, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.