UP Textile and Garmenting Policy 2022

• Land Cost Subsidy:Reimbursement of 25% of land cost on purchase of land in industrial areas developed by the Government Development Authorities, except in Gautam Budh Nagar district. In Gautam Budh Nagar district, this land cost subsidy is 15% of the land cost.
• Stamp Duty Exemption:Land, Shed or Industrial Building purchased or taken on lease from the State or Central Government, or their undertakings will be eligible for exemption from stamp duty. 75% exemption of Stamp Duty to units setting up in Gautam Budh Nagar district and100% exemption of Stamp Duty to units setting up in remaining districts of the state.
• Capital Subsidy: 25% capital subsidy on purchase of plant and machinery to the units, generating employment to minimum 50 persons. Additional 10% capital subsidy on plant & machinery to the units setting up in Poorvanchal and Bundelkhand region of the state.
• Infrastructure Subsidy:
  • 50% of the project cost for developing self-use infrastructural amenities such as (i)Road; (ii) Drainage & Water Supply; (iii) Power Supply subject to a maximum of INR 3 Crore.
  • 50% of the project cost for establishing ETP & DG Sets, maximum up to INR 5 Crore.
  • 25% of the project cost for developing in-house training facility, testing laboratory, QC Labs, R&D Centre, maximum up to INR 2.5 Crore.
  • 25% of the project cost for developing staff quarter, worker’s hostel or dormitory, maximum up to INR 5 Crore.
• Incentives related to Energy:
  • 100% exemption from Electricity Duty to new Textile and Garmenting Units for a period of 10 years.
  • Permission for Open Access of Electricity to Developers or Units consuming more than a threshold limit, as per Electricity Act.
  • Units in PM MITRA Park, which employs more than 50 persons, will be provided power tariff subsidy of INR 2 per unit for 5 years. The upper limit of this power tariff INR 60 Lakh per annum per unit.
• Employment Generation Subsidy:Subsidy of INR 3,200/- per worker per month will be provided to mega and super mega garmenting units, except in Gautam Budh Nagar and Ghaziabad district, for a period of 5 years.
• Freight Reimbursement:To promote exports of garments, freight cost of container from unit to port will be reimbursed, for 5 years as per following: –
  • 75% reimbursement for 2 years
  • 50% reimbursement for next 2 years
  • 25% reimbursement in fifth year
• 8. Incentive for Private Textile Park:The Government of Uttar Pradesh will provide incentive for developing integrated textile and apparel park in a minimum area of 25 acres, with plug and play facility and CETP. Financial assistance of 50% of the project cost (excluding cost of land), will be provided maximum up to INR 50 Crore per park.
• Incentive for promotion of Silk Industry:
  • 15% capital subsidy for rearing of chaaki worm, koya production, reeling and spinning in sericulture on investment up to INR 1 Crore. In case of SC/ST entrepreneurs, this grant will be 20%.
  • 20% capital subsidy to silk reeling units with investments more than INR 1 Crore
  • Silk reeling units producing 75% threads from koya produced in state, will be provided interest subsidy @5% on working capital loan for 5 years. The upper limit of this subsidy is INR 50,000 per annum.
• Incentive to Youth of For Starting New Employment in Marketing:The youth (resident male/female of Uttar Pradesh) shall be encouraged towards Selfemployment related to the production, design, marketing and export of handloom and textile products. This special facility will be available to youth (male/female) who are not above 35 years of age.
• For Starting New Employment in Production: –
  • 75% capital subsidy to set up 05–20 handlooms or 05–10 power-looms in a shed, maximum of INR 20 Lakh for handloom and INR 60 Lakh for power-loom.
  • Subsidy of 50% on rent of flatted factories allotted by State Agencies for 5 years and 75% capital subsidy on Plant & Machinery, maximum up to INR 25 Lakh per unit.
• For Starting New Employment in Design: –
  • 75% of the project cost to set up Design Studio, maximum up to INR 30 Lakh per entrepreneur.
• For Starting New Export House: –
  • 75% of the registration fee and cost of infrastructure to open new Export House, maximum up to INR 20 Lakh per company.
• For Starting New Employment in Marketing: –

  75% of the registration fee and cost of infrastructure to set up a marketing company, maximum up to INR 50 Lakh per company. Preference to the children of weavers. Further, following incentives will be given on creation of own brand through marketing and opening its chain outlets: –

  • INR 2 Crores on opening 50 outlets and having minimum annual sales of INR 4 Crores
  • INR 4 Crores on opening 100 outlets and having minimum annual sales of INR 8 Crores
  • INR 8 Crores on opening 200 outlets and having minimum annual sales of INR 16 Crores
  • INR 10 Crores on opening 500 outlets and having minimum annual sales of INR 20 Crores
  • Condition: Sales from all the outlets have been made for a period of 3 years and 80% of the prescribed outsets have been opened outside UP. Additional subsidy of INR 2 Crore on opening 25 or more outlets outside the country