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

FAQ

Answers to the questions founders most often ask about UP Capital Subsidy — 25% up to ₹50 Cr for ICD, CFS & AFS Projects — who qualifies, the funding amount, required documents and how the application works.

Frequently asked questions

How much funding does the UP Capital Subsidy provide for an ICD, CFS or AFS project?

The subsidy covers 25% of your eligible capital investment. The maximum payable is ₹25 crore for a project set up anywhere in Uttar Pradesh, and up to ₹50 crore if the project is located in a designated Logistics Zone within the state.

Which projects are eligible for this subsidy?

The scheme is limited to Inland Container Depot (ICD), Container Freight Station (CFS) and Air Freight Station (AFS) projects. The project must be set up within Uttar Pradesh, and the subsidy is calculated on the eligible capital investment made in it.

What is the difference between the ₹25 crore and ₹50 crore limits?

Both figures are maximum subsidy amounts, and the difference is purely location-based. A qualifying project anywhere in Uttar Pradesh can receive up to ₹25 crore. If the same kind of project is established in one of the state's designated Logistics Zones, the ceiling rises to ₹50 crore.

Is there a last date to apply for this capital subsidy?

No fixed deadline applies. The scheme runs on a rolling basis, so applications can be submitted at any time under the New UP Warehousing & Logistics Policy 2022. It is still worth confirming the current status of the policy with the nodal agency before you file.

Is this subsidy a loan or does the government take equity in return?

Neither. It is a capital subsidy — a non-repayable form of support on your capital investment. There is no repayment obligation, and the government does not acquire any equity stake in your project or your company.

Do I need DPIIT recognition or MSME registration to claim it?

The published scheme details do not lay down a DPIIT recognition or MSME registration condition. Eligibility is framed around the type of project (ICD, CFS or AFS), its location in Uttar Pradesh, and the eligible capital investment. Since requirements can be updated, confirm the current checklist with the nodal agency or in the policy document.

What documents are typically required with the application?

You will generally need to file a project proposal along with financial projections, land ownership or lease agreements for the project site, and a detailed cost breakdown of the capital investment being claimed. Applicants are also expected to have studied the policy document so that the claim matches the policy's definition of eligible capital investment.

How is the subsidy amount actually calculated?

The amount is 25% of the eligible capital investment in the project, subject to the applicable ceiling — ₹25 crore for projects anywhere in Uttar Pradesh and up to ₹50 crore for those in designated Logistics Zones. What counts as eligible capital investment is defined in the policy, so the exact figure depends on how your project's expenditure is classified.

How and where do I apply?

Applications are submitted through the Government of Uttar Pradesh's official Uttar Pradesh Nivesh Mitra portal at https://niveshmitra.up.gov.in/, and filed with the nodal agency or department named in the policy. Before applying, read the New UP Warehousing & Logistics Policy 2022 to understand the terms, conditions and documentation expectations.

When is the subsidy money paid out?

Payment follows approval by the competent authority. The subsidy is disbursed in tranches or against verified milestones relating to project completion and capital expenditure, which means verification — including possible site inspections — comes before release of funds.

Who is eligible to apply for UP Capital Subsidy — 25% up to ₹50 Cr for ICD, CFS & AFS Projects?

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.

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

UP Capital Subsidy — 25% up to ₹50 Cr for ICD, CFS & AFS Projects is offered by Government of Uttar Pradesh, a government body. It is provided as non-dilutive funding.

How do I apply for UP Capital Subsidy — 25% up to ₹50 Cr for ICD, CFS & AFS Projects?

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.

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