UP Textile Infra Subsidy — 50% Project Cost Support Up to ₹3 Cr
A rolling subsidy from the Government of Uttar Pradesh that covers half the cost of self-use infrastructure — roads, drainage, water and power — for textile and garmenting units, capped at ₹3 crore.
- Funding amount
- ₹3Cr (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 UP Textile Infra Subsidy is a capital support measure from the Government of Uttar Pradesh, offered under the state's Textile and Garmenting Policy 2022. Its purpose is narrow and practical: to help textile and garmenting units build the basic site infrastructure they need to run, at the moment when those costs weigh heaviest.
Laying internal roads, putting in drainage lines and a water supply, and arranging dependable power through dedicated lines and transformers adds up fast for a unit breaking ground on raw, undeveloped land. Rather than leave that entire bill with the promoter, the state steps in to share it.
By lowering the upfront infrastructure outlay, the government aims to draw both domestic and overseas investors into textile and garment manufacturing in Uttar Pradesh, support local entrepreneurs, and strengthen the state's position as a garmenting hub. The expected results are added production capacity, better export prospects and employment growth, including in regions that have seen less industrial activity.
Applications run on a rolling basis, so there is no fixed closing date to work towards.
Highlights
- Subsidy covering 50% of project cost, capped at ₹3 crore per unit
- Offered under the UP Textile and Garmenting Policy 2022, Section 4.4.a
- Funds self-use infrastructure: internal roads, drainage, water supply, transformers and power lines
- Aimed at textile and garmenting units coming up on undeveloped land parcels
- Rolling window — no fixed last date announced
- Applications filed through the state's Nivesh Mitra portal
Who can apply
Who can apply
- Textile and garmenting units covered by the UP Textile and Garmenting Policy 2022.
- Units being set up on undeveloped land parcels — the scheme is framed around fresh site development, not existing built-up premises.
- Applicants developing the infrastructure they will use themselves: internal roads, water supply and drainage systems, and power arrangements such as transformers and dedicated power lines.
- The amenities must serve the unit's own operations rather than shared or third-party infrastructure.
The available policy material does not specify a minimum project size, a separate list of eligible sub-sectors, or founder-level conditions. What decides eligibility is the nature of the spend: infrastructure on new land, for the unit's own use, within the textile and garmenting sector.
UP Textile Infra Subsidy — 50% Project Cost Support Up to ₹3 Cr 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 Textile Infra Subsidy — 50% Project Cost Support Up to ₹3 Cr 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 scheme funds 50% of the project cost of self-use infrastructure, with total support capped at ₹3 crore per eligible unit.
- Covered components include internal road development, water supply and drainage systems, and power supply infrastructure such as transformers and dedicated power lines.
- Since only half the bill is covered, the unit finances the remaining 50% from its own resources or other sources.
- Disbursement generally works on a reimbursement basis — the unit spends first, then claims the eligible share once the authorities have verified it.
- Alongside the cash support, the programme carries the backing of the state government as part of the wider 2022 policy package.
The net effect is to shrink the capital expenditure a new unit faces in its earliest phase and shorten the time it takes to become operationally ready.
About the provider
UP Textile Infra Subsidy — 50% Project Cost Support Up to ₹3 Cr 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 reviewed by a committee constituted by the Government of Uttar Pradesh.
- Initial screening — the application is checked for completeness and for basic eligibility, including the unit's place in the textile and garmenting sector and its location on an undeveloped land parcel.
- Technical and financial assessment — reviewers study the proposal: estimated costs, whether the proposed infrastructure is technically feasible and genuinely necessary, and how much the unit is likely to contribute to the state's industrial growth.
- Site visit and clarifications — the committee may visit the proposed location and hold discussions with the applicant to settle open points.
- Final approval — a decision is taken on the overall evaluation, with support going to the projects judged most deserving and most aligned with the policy's development aims.
- Disbursement — after approval, and once work has begun or been completed and verified through inspection and expenditure proofs, the subsidy is released.
Documents you’ll need
Before you apply to UP Textile Infra Subsidy — 50% Project Cost Support Up to ₹3 Cr, 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 Textile Infra Subsidy — 50% Project Cost Support Up to ₹3 Cr is best suited for startups in India seeking non-dilutive funding of ₹3Cr. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much money does this subsidy actually provide?
It covers 50% of the cost of the self-use infrastructure you build, and the total subsidy per eligible unit is capped at ₹3 crore. If your qualifying infrastructure spend is large, the ₹3 crore ceiling is what you receive; if it is smaller, you get half of the actual cost.
What kind of infrastructure does the scheme pay for?
The support is meant for amenities a unit builds for its own operations. That includes internal roads used for logistics, drainage and water supply systems needed for manufacturing, and power supply arrangements such as dedicated power lines and transformers. The policy material does not list other categories of infrastructure.
Who is eligible to apply?
Units in the textile and garmenting sector, as defined by the UP Textile and Garmenting Policy 2022, that are being set up on undeveloped land parcels and are developing their own infrastructural amenities. The scheme is structured around fresh site development rather than units already operating from ready-built premises.
Does this programme take equity or a stake in my business?
No. It is a subsidy, which means the money is non-dilutive — the Government of Uttar Pradesh does not take shares or ownership in your unit in return for the support.
Is there a deadline I need to apply before?
The scheme runs on a rolling, always-open basis, so no fixed closing date has been announced. That said, the subsidy is disbursed against verified expenditure, so it is sensible to plan your application around your infrastructure build rather than waiting until the work is finished.
Are only new units eligible, or can existing businesses apply?
The policy language refers specifically to units setting up on undeveloped land parcels. In practice that points to new establishments or significant expansions that involve developing fresh land, rather than units that are already built and operating.
Do I have to put in my own money as well?
Yes. Because the subsidy covers half the project cost, the unit is expected to fund the remaining 50% from its own resources or through other financing. The programme shares the cost rather than paying for the infrastructure outright.
How and when is the subsidy paid out?
Disbursement typically happens on a reimbursement basis. The unit incurs the infrastructure cost first, and the eligible 50% — up to ₹3 crore — is released after the authorities verify the spend through site inspection and expenditure proofs.
What documents do I need to submit?
Based on the policy's application requirements, you should be ready with proof of land ownership or lease on the undeveloped parcel, a detailed project report for the planned infrastructure, cost estimates from approved vendors, incorporation documents for the unit, and the prescribed application form with any annexures the policy specifies.
How do I apply for this subsidy?
Start by reading the full UP Textile and Garmenting Policy 2022, particularly Section 4.4.a, so you understand the criteria and procedure. Then prepare a project proposal covering the roads, drainage, water supply and power components with costs and technical specifications, gather the supporting documents, and submit the application to the designated authority — likely the Department of MSME & Export Promotion or the implementing agency named in the policy annexures. Applications are filed through the state's Nivesh Mitra portal at niveshmitra.up.gov.in.
Is DPIIT recognition required for UP Textile Infra Subsidy — 50% Project Cost Support Up to ₹3 Cr?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for UP Textile Infra Subsidy — 50% Project Cost Support Up to ₹3 Cr, though having it can strengthen your application and unlock other benefits.
Who offers UP Textile Infra Subsidy — 50% Project Cost Support Up to ₹3 Cr?
UP Textile Infra Subsidy — 50% Project Cost Support Up to ₹3 Cr is offered by Government of Uttar Pradesh, a government body. It is provided as non-dilutive funding.
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