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

It reimburses 60% of the interest a unit pays each year on loans taken for plant and machinery. The most payable in a single year is ₹1.5 crore per unit, and the benefit can be drawn for up to 7 years. For units located in Gautam Budh Nagar district, the annual ceiling is lower, at ₹75 lakh.

Textile and garmenting units operating in Uttar Pradesh. The claim has to relate to plant and machinery the unit is purchasing, that machinery must be eligible under the TUFS or ATUFS framework, and the money must have been borrowed from a commercial bank or a recognised financial institution. Applicants also need to meet the conditions laid out in the Uttar Pradesh Textile and Garmenting Policy 2022.

It is tied to interest on plant and machinery loans, and nothing else. The unit must be investing in plant and machinery financed through a commercial bank or financial institution, and that equipment must qualify under TUFS/ATUFS. If the machinery does not clear that benchmark, the interest paid on it is not counted towards the subsidy.

No fixed closing date applies. The scheme runs on a rolling basis and stays open, so a unit can apply once its loan and machinery paperwork is ready.

No. This is a subsidy — a reimbursement of interest the unit has already paid. It is non-dilutive, which means no shares, equity or ownership stake is taken in the business in exchange for the money.

The reimbursement is available for a maximum of 7 years.

The headline ceiling is ₹1.5 crore per annum per unit for units across the state. Units situated in Gautam Budh Nagar district are treated separately and can receive up to ₹75 lakh per year.

You will need a detailed project report, proof of the loan sanction and its disbursement from the bank or financial institution, invoices for the plant and machinery, and evidence of the interest payments you have made. Documentation showing the machinery is eligible under TUFS/ATUFS is also required, along with the other papers the policy prescribes.

Start by reading the Uttar Pradesh Textile and Garmenting Policy 2022 in full, particularly Section 4.5, which carries the detailed instructions and eligibility criteria. Assemble the complete application package and submit it, in the prescribed format and within the stated timelines, to the nodal agency named by the Government of Uttar Pradesh — usually Invest UP or the Department of MSME & Export Promotion. Applications are made through the state's Nivesh Mitra portal at https://niveshmitra.up.gov.in/.

Yes. Only plant and machinery that is eligible under the Technology Upgradation Fund Scheme (TUFS) or the Amended Technology Upgradation Fund Scheme (ATUFS) can be counted when the subsidy is calculated.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for UP Textile & Garmenting Interest Subsidy — Up to ₹1.5 Cr a Year for 7 Years, though having it can strengthen your application and unlock other benefits.

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. 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.