UP Capital Subsidy — 25% up to ₹50 Cr for ICD, CFS & AFS Projects

This capital subsidy is one of the headline incentives of the New UP Warehousing & Logistics Policy 2022, run by the Government of Uttar Pradesh. It targets a specific class of freight infrastructure — Inland Container Depots (ICDs), Container Freight Stations (CFSs) and Air Freight Stations (AFSs) — and is designed to pull private investment into building them within the state.

Facilities like these sit at the junction of road, rail and air cargo movement. Where they are missing or inadequate, freight costs rise for nearly every business that depends on warehousing and transport. By covering a quarter of the capital spent on such projects, the scheme is intended to make large logistics builds commercially viable and to strengthen Uttar Pradesh's standing as a logistics hub with better connectivity and lower operating costs.

Support is tiered by location. A project anywhere in Uttar Pradesh can claim up to ₹25 crore; one sited in a designated Logistics Zone can claim as much as ₹50 crore.

Applications are accepted on a rolling basis, so there is no fixed closing date.

• Capital subsidy of 25% of eligible capital investment
• Up to ₹50 crore for projects in designated Logistics Zones in Uttar Pradesh
• Up to ₹25 crore for such projects located elsewhere in the state
• Only ICD, CFS and AFS projects in Uttar Pradesh qualify
• Non-repayable subsidy — the government takes no equity
• Applications are accepted on a rolling basis, with no fixed deadline

The subsidy is open to entities undertaking specific freight-infrastructure projects inside Uttar Pradesh. The key conditions are:

• Project type: the project must be an Inland Container Depot (ICD), a Container Freight Station (CFS), or an Air Freight Station (AFS). Other warehousing or logistics formats do not fall under this particular incentive.
• Location: the project has to be set up somewhere within the state of Uttar Pradesh. Projects located in designated Logistics Zones are eligible as well, and attract a higher maximum subsidy.
• Basis of the claim: the subsidy is worked out on the eligible capital investment made in the project, so the applicant needs to be able to document that investment.

No separate DPIIT recognition or MSME registration condition is set out in the scheme details; eligibility turns on the type of project, its location in Uttar Pradesh, and the capital investment involved. Applicants should confirm the current position and the full definition of eligible capital investment in the policy document or with the nodal agency.

UP Capital Subsidy — 25% up to ₹50 Cr for ICD, CFS & AFS Projects is open to startups at any stage. It is open to startups registered anywhere in India.

UP Capital Subsidy — 25% up to ₹50 Cr for ICD, CFS & AFS Projects 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.

The scheme pays a capital subsidy equal to 25% of eligible capital investment in an approved ICD, CFS or AFS project.

The ceiling depends on where the project is built:

• Up to ₹25 crore for projects established anywhere in Uttar Pradesh.
• Up to ₹50 crore for projects located in designated Logistics Zones within the state.

The money is a subsidy, not a repayable facility — it is a direct capital infusion that improves project economics, and the government takes no equity in the project or the company in return.

Disbursement is made in tranches or against verified milestones of project completion and capital expenditure, following approval by the competent authority.

UP Capital Subsidy — 25% up to ₹50 Cr for ICD, CFS & AFS Projects 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.

Applications are assessed rather than allotted on a first-come basis. The sequence usually runs as follows:

• Submission: the complete application goes to the nodal agency or department designated by the Government of Uttar Pradesh, as set out in the New UP Warehousing & Logistics Policy 2022. Applications are made through the state's official Uttar Pradesh Nivesh Mitra portal.
• Committee review: proposals are examined by a dedicated committee that includes officials from the Industrial Development Department along with other relevant state agencies.
• Assessment: the committee looks at how well the project fits the policy's objectives, whether the proposed capital investment qualifies as eligible, and the project's overall viability and likely impact on the state's logistics sector.
• Due diligence and verification: this stage can involve financial due diligence and technical feasibility studies, and may include site inspections to confirm compliance with policy guidelines as well as verification of the proposed and actual capital expenditure.
• Approval: once the assessment is satisfactory, the competent authority grants approval.
• Disbursement: the subsidy is then released in tranches or against verified milestones of project completion and capital expenditure.

Before you apply to UP Capital Subsidy — 25% up to ₹50 Cr for ICD, CFS & AFS Projects, 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 Capital Subsidy — 25% up to ₹50 Cr for ICD, CFS & AFS Projects is best suited for startups in India seeking non-dilutive funding of ₹50Cr. If that describes your startup, review the eligibility criteria above before applying.