UP Textile & Garmenting Interest Subsidy — Up to ₹1.5 Cr a Year for 7 Years

The Interest Subsidy on Plant and Machinery is one of the headline incentives of the Uttar Pradesh Textile and Garmenting Policy 2022 and is delivered by the Government of Uttar Pradesh. It exists to make borrowing lighter for textile and garmenting manufacturers that are putting money into new equipment inside the state.

A qualifying unit is reimbursed 60% of the interest it pays each year on loans raised from commercial banks or recognised financial institutions to buy plant and machinery. The benefit continues for up to 7 years.

The support works as a recurring annual reimbursement rather than a one-off grant. Units anywhere in Uttar Pradesh may claim as much as ₹1.5 crore in a single year, while those based in Gautam Budh Nagar district have an annual ceiling of ₹75 lakh. Only machinery that meets TUFS/ATUFS norms is counted, which ties the incentive directly to technology upgradation.

That link is the point of the scheme: modern plant, larger production capacity and a more competitive textile and garmenting industry in Uttar Pradesh, along with the employment such growth brings. Applications are accepted on a rolling basis, so there is no fixed last date to work towards.

• 60% of yearly interest on plant and machinery loans reimbursed
• Benefit available for up to 7 years
• Yearly ceiling of ₹1.5 crore per unit
• Gautam Budh Nagar units capped at ₹75 lakh a year
• Open to textile and garmenting units operating in Uttar Pradesh
• No closing date — applications accepted round the year

The scheme is open to textile and garmenting units that are operating in Uttar Pradesh. The claim has to be tied to plant and machinery the unit is actually buying, and the money must have been borrowed for that purpose.

Two conditions settle most eligibility questions:

• The machinery being purchased must be eligible under TUFS or ATUFS — the Technology Upgradation Fund Scheme and its amended version.
• The loan must come from a commercial bank or a recognised financial institution. Interest paid to any other kind of lender does not qualify.

Applicants also need to satisfy the wider conditions of the Uttar Pradesh Textile and Garmenting Policy 2022, including the provisions set out in Section 4.5 of that policy.

UP Textile & Garmenting Interest Subsidy — Up to ₹1.5 Cr a Year for 7 Years is open to startups at any stage. It is open to startups registered anywhere in India.

UP Textile & Garmenting Interest Subsidy — Up to ₹1.5 Cr a Year for 7 Years 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.

Support under this scheme is a cash reimbursement of interest, released to the unit against interest it has already paid on its borrowing.

• 60% of the annual interest on eligible plant and machinery loans is returned to the unit.
• The benefit can be claimed for a maximum of 7 years.
• The yearly ceiling is ₹1.5 crore per unit across Uttar Pradesh.
• Units in Gautam Budh Nagar district have a lower annual ceiling of ₹75 lakh.

Because the money offsets interest already paid on a bank or financial institution loan, it directly reduces the cost of the capital equipment a unit has installed. That in turn makes further investment in advanced manufacturing infrastructure easier to justify.

The scheme pays out as a subsidy, so a unit gives up no equity and no ownership in return for the money.

UP Textile & Garmenting Interest Subsidy — Up to ₹1.5 Cr a Year for 7 Years 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.

The department administering the scheme reviews every application received. Officers begin by checking whether the unit satisfies the eligibility conditions laid down under the Uttar Pradesh Textile and Garmenting Policy 2022.

They then examine the loan particulars — the lender, whether the borrowing was for plant and machinery, and how much interest has actually been paid — and confirm that the equipment claimed for is recognised under TUFS/ATUFS.

Submitted documents are validated as part of this scrutiny, and the eligible subsidy is calculated from the interest the unit has paid over the year.

The purpose of the review is to ensure that the support reaches only units that genuinely qualify, based on their eligibility, loan details, interest payments and compliance with the policy.

Before you apply to UP Textile & Garmenting Interest Subsidy — Up to ₹1.5 Cr a Year for 7 Years, 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 Textile & Garmenting Interest Subsidy — Up to ₹1.5 Cr a Year for 7 Years is best suited for startups in India seeking non-dilutive funding of ₹1.5Cr. If that describes your startup, review the eligibility criteria above before applying.