UP Pumped Storage Plant Capital Subsidy — 18–30% of ECI
A cash capital subsidy from the Government of Uttar Pradesh for pumped storage plant projects classified as Mega or Above, covering 18%–30% of Eligible Capital Investment with annual payouts capped between ₹10 Crore and ₹150 Crore.
- Funding amount
- ₹150Cr (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
The Government of Uttar Pradesh offers this capital subsidy to promoters building large pumped storage capacity in the state. It sits within the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022 and is aimed squarely at pumped storage plant (PSP) projects that the policy places in the Mega or Above category.
Support is worked out on the project's Eligible Capital Investment (ECI). Annual payouts are capped somewhere between ₹10 Crore and ₹150 Crore, and the subsidy is released across a 12 to 20 year period, so the structure suits projects with long construction timelines and long payback horizons. Applications are accepted round the year, with no fixed closing date.
The state's stated aim is to draw private capital into energy infrastructure and to strengthen grid stability through storage, which helps bring more renewable generation onto the system. Absorbing part of the capital cost is meant to make these large projects financially more workable.
Highlights
- Base capital subsidy of 18% to 30% of Eligible Capital Investment (ECI)
- Annual payout ceiling between ₹10 Crore and ₹150 Crore
- Subsidy released over a 12 to 20 year period
- Reserved for pumped storage plant projects classified as Mega or Above
- Rolling applications — no fixed last date
- Delivered under the UP Industrial Investment & Employment Promotion Policy 2022
Who can apply
This incentive is open to a tightly defined set of projects rather than to startups or small businesses generally.
- The project must be a pumped storage plant (PSP).
- It must fall in the Mega or Above category as that classification is defined under the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022.
- The project has to meet the definitions and conditions laid down in that policy.
Because both the classification and the Eligible Capital Investment (ECI) figure decide how much support a project receives, applicants should establish both strictly on the basis of the policy's own definitions rather than their own assumptions.
UP Pumped Storage Plant Capital Subsidy — 18–30% of ECI 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 Pumped Storage Plant Capital Subsidy — 18–30% of ECI 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 incentive is a base capital subsidy of 18% to 30% of the project's Eligible Capital Investment (ECI). It is paid in cash.
- Annual ceiling: between ₹10 Crore and ₹150 Crore.
- Payout period: spread over 12 to 20 years, tied to defined milestones.
- No boosters: the GCM (Goods and Services Tax Capitalization Mechanism) and every other booster provided under the policy are expressly not applicable to these projects, so the base capital subsidy is the only support on offer under this head.
Because the subsidy scales with ECI, the larger the eligible capital outlay, the larger the support — subject always to the annual ceiling.
About the provider
UP Pumped Storage Plant Capital Subsidy — 18–30% of ECI 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
Applications are examined by the authorities that administer the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022. The evaluation typically moves through four stages:
- Initial screening: the application is checked for completeness and for basic eligibility as a Mega or Above PSP project.
- Technical and financial assessment: the proposal is evaluated in detail for technical feasibility, financial viability, and conformity with the policy's definitions for ECI and project classification.
- Committee review: a high-level committee of experts and government officials assesses whether the project fits the state's industrial and energy development objectives.
- Approval and sanction: once the evaluation is cleared, the subsidy is approved and sanctioned, after which disbursement proceeds against defined milestones and the applicable annual ceilings.
Documents you’ll need
Before you apply to UP Pumped Storage Plant Capital Subsidy — 18–30% of ECI, 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 Pumped Storage Plant Capital Subsidy — 18–30% of ECI is best suited for startups in India seeking non-dilutive funding of ₹150Cr. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
What is the Uttar Pradesh base capital subsidy for pumped storage plants?
It is a cash capital subsidy offered by the Government of Uttar Pradesh under its Industrial Investment & Employment Promotion Policy 2022. It is meant for pumped storage plant projects that the policy classifies as Mega or Above, and it works as a subsidy rather than a loan or an equity investment.
How much funding does the subsidy provide?
Support ranges from 18% to 30% of the project's Eligible Capital Investment (ECI). The payout is spread across 12 to 20 years, and in any single year the amount is capped somewhere between ₹10 Crore and ₹150 Crore.
Is there an application deadline?
No. The window is rolling and always open, so an application can be submitted at any point rather than against a fixed closing date.
Which projects are eligible?
Only pumped storage plant projects that qualify as Mega or Above under the policy's definitions are eligible. Applicants also need to satisfy the definitions and conditions set out in the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022.
Does the subsidy take equity in my project?
No. It is a capital subsidy paid in cash, so it does not dilute the promoter's holding. The policy also makes clear that the GCM (Goods and Services Tax Capitalization Mechanism) and all other boosters under the policy do not apply to these projects, so the base capital subsidy is the only support available here.
How is the subsidy released?
Disbursement is spread over 12 to 20 years and is linked to defined milestones, subject to an annual ceiling of between ₹10 Crore and ₹150 Crore. Support therefore arrives in stages across the payout period rather than as a single upfront payment.
How is Eligible Capital Investment (ECI) determined?
ECI is computed according to the definitions and conditions given in the policy. Since the percentage applied and the eventual payout are both calculated on this figure, the ECI working should be prepared on the policy's methodology and submitted along with the project proposal.
What documents are needed to apply?
An application needs a comprehensive project proposal covering the pumped storage plant, its classification as Mega or Above, and the calculations of Eligible Capital Investment. The remaining paperwork is the documentation set required under the policy, so applicants should refer to the official policy document for the exact list and forms.
How is an application assessed?
Assessment moves through four stages: an initial screening for completeness and basic eligibility; a technical and financial assessment covering feasibility and the treatment of ECI; a review by a high-level committee of experts and government officials; and finally approval and sanction, after which disbursement begins.
Where do I submit the application?
Applications are filed as part of the wider application process under the Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022. Submissions go through the state's single-window portal at https://niveshmitra.up.gov.in/, and any further information or clarification requested by the evaluating committee has to be answered as part of the same process.
Is DPIIT recognition required for UP Pumped Storage Plant Capital Subsidy — 18–30% of ECI?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for UP Pumped Storage Plant Capital Subsidy — 18–30% of ECI, though having it can strengthen your application and unlock other benefits.
Who is eligible to apply for UP Pumped Storage Plant Capital Subsidy — 18–30% of ECI?
UP Pumped Storage Plant Capital Subsidy — 18–30% of ECI is open to startups at any stage. It is open to startups registered anywhere in India.
Who offers UP Pumped Storage Plant Capital Subsidy — 18–30% of ECI?
UP Pumped Storage Plant Capital Subsidy — 18–30% of ECI is offered by Government of Uttar Pradesh, a government body. It is provided as non-dilutive funding.
How do I apply for UP Pumped Storage Plant Capital Subsidy — 18–30% of ECI?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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