UP Textile Infra Subsidy — 50% Project Cost Support Up to ₹3 Cr — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.