UP Pumped Storage Plant Capital Subsidy — 18–30% of ECI — Frequently Asked Questions

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.

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.

No. The window is rolling and always open, so an application can be submitted at any point rather than against a fixed closing date.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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