UP Inland Vessel Purchase Subsidy — 25% Back, Up to ₹5 Crore

The UP Inland Vessel Purchase Subsidy is a capital-support incentive from the Government of Uttar Pradesh, offered under the New UP Warehousing & Logistics Policy 2022. It exists for businesses that buy inland vessels to carry freight on National Waterway-1 inside Uttar Pradesh.

Instead of funding running costs, the scheme goes after the upfront price of the asset itself. The state pays 25% of what the vessel actually costs, with a ceiling of ₹5 crore for any one vessel. On a capital purchase of that size, that is a substantial reduction in the money an operator has to raise and commit before the vessel ever starts earning.

The reasoning behind it is multi-modal freight. Uttar Pradesh wants more cargo moving by water on National Waterway-1, and private operators only make that shift when the numbers on a vessel purchase stack up. By closing part of the purchase gap, the policy tries to draw private money into inland waterway transport, take pressure off road and rail movement, and support efficient, lower-impact freight across the state. It sits alongside the wider warehousing and logistics push the state has been building, and it is one of the ways Uttar Pradesh positions itself as a freight hub.

Applications run on a continuous, always-open basis — there is no fixed window to watch for.

• 25% subsidy on the actual purchase cost of an inland vessel
• Capped at ₹5 crore per vessel
• For vessels operating on National Waterway-1 in Uttar Pradesh
• Scheme covers the first 10 vessels; maximum 4 per entity
• Applications are rolling — no fixed deadline
• Subsidy is facilitated through eligible vessel manufacturers

The scheme revolves around one core condition: the vessel has to be an inland vessel bought for operations in Uttar Pradesh along National Waterway-1.

• Who can apply: entities purchasing inland vessels for logistics and transportation use on National Waterway-1 within the state.
• What the asset must be: an inland vessel, as defined under the policy, deployed for operations in Uttar Pradesh on that waterway.
• Where it must run: National Waterway-1, within Uttar Pradesh.

The criteria set out for this subsidy centre on the vessel and the route it serves rather than on the applicant's sector, stage or size. DPIIT recognition and MSME registration are not listed among the requirements. The benefit is available on a rolling basis, and claims are subject to the scheme's vessel-count limits.

UP Inland Vessel Purchase Subsidy — 25% Back, Up to ₹5 Crore is open to startups at any stage. It is open to startups registered anywhere in India.

UP Inland Vessel Purchase Subsidy — 25% Back, Up to ₹5 Crore 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 headline benefit is straightforward: 25% of the actual purchase cost of a new inland vessel, capped at ₹5 crore per vessel.

• The percentage is applied to the real cost of the vessel, not to a notional or negotiated value.
• The ₹5 crore ceiling applies per vessel, however expensive that vessel is overall.
• Support covers the first 10 vessels taken up under the scheme as a whole.
• Any single entity can claim for a maximum of 4 vessels.

Because the money is routed as a reduction in the purchase price rather than as a later reimbursement cheque, it directly lowers the capital outlay needed to put a vessel into service on National Waterway-1. The overall 10-vessel cap and the 4-vessel per-entity limit are designed to spread the benefit across several operators rather than letting one buyer take the entire allocation.

This is a subsidy, so it is non-dilutive — the Government of Uttar Pradesh takes no equity in the purchasing entity and nothing has to be repaid.

UP Inland Vessel Purchase Subsidy — 25% Back, Up to ₹5 Crore 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 Inland Vessel Purchase Subsidy — 25% Back, Up to ₹5 Crore, 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 Inland Vessel Purchase Subsidy — 25% Back, Up to ₹5 Crore 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.