Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022
A Strategic Blueprint for Growth
Introduction:
Uttar Pradesh, one of India’s most dynamic and populous states, has introduced a forward-thinking policy framework to catapult its industrial landscape into the global spotlight. The Industrial Investment & Employment Promotion Policy 2022 (IIEPP 2022) (https://invest.up.gov.in/uttar-pradesh-industrial-investment-employment-promotion-policy-2022/) is a comprehensive, policy aimed at transforming the state into a globally competitive industrial and investment hub. It builds on past successes and sets ambitious targets, including boosting UP’s GSDP to US $1 trillion.
Here’s a closer look at what makes this policy a game-changer for investors and industry stakeholders alike.
A Policy Anchored in Vision and Clarity
Formulated with clear objectives and a focus on sustainable growth, Uttar Pradesh’s policy ensures that larger, high-impact projects receive proportionately greater incentives and support. The policy categorizes projects according to their investment scale to ensure appropriate incentives and facilitation:
Large Projects: ₹50 Cr – ₹200 Cr
Mega Projects: ₹200 Cr – ₹500 Cr
Super Mega Projects: ₹500 Cr – ₹3,000 Cr
Ultra-Mega Projects: ₹3,000 Cr and above
A key highlight of this policy is that benefits grow in proportion to your investment, meaning smart scaling is at the heart of this framework. Whether you’re expanding or just starting, it offers the right incentives to match your vision.
Region-Based Stamp Duty Exemptions: Incentivizing Inclusion
No two regions are the same, so why should incentives be? Uttar Pradesh’s policy introduces regional stamp duty exemptions to ensure balanced industrial growth:
100% exemption in Bundelkhand and Poorvanchal region
75% exemption in Madhyanchal and Paschimanchal (excluding Ghaziabad and GB Nagar)
50% exemption in Gautambuddh Nagar and Ghaziabad
This approach ensures growth across all regions, bringing industrialization to even the most underdeveloped areas.
Flexible Incentives: One-Time Strategic Choice for Investors
Investors can select one of three financial incentive options, tailored to their business model and vision. Once selected, the investor gets a one-time chance to switch before final approval.
Option 1: Capital Subsidy with Boosters
This option provides a base capital subsidy that grows over time based on actual capacity utilization and additional contributions through:
Employment Boosters: Based on how many people (especially women) a project employees
Mega Projects (300 employees): 2% boost for 75% women hire.
Super Mega Projects (600 employees): 3% boost for twice the minimum or 75% women hire.
Ultra Mega Projects (1500 employees): 4% boost for three times the minimum or 75% women hire.
Exports Boosters: For projects generating a significant share of revenue through exports
25% exports: 2% boost on Eligible Capital Investment.
50% exports: 3% boost on Eligible Capital Investment.
75% exports: 4% boost on Eligible Capital Investment.
Ecosystem Boosters: For businesses that source inputs from within Uttar Pradesh itself
40-60% of total raw/input material requirement: 2% boost on Eligible Capital Investment.
60-75% of total raw/input material requirement: 3% boost on Eligible Capital Investment.
More than 75% of total raw/input material requirement: 4% boost on Eligible Capital Investment.
These boosters support sustainable growth, empowering businesses to contribute to job creation, global trade, and local supply chains in Uttar Pradesh.
Option 2: Net SGST Reimbursement
Under this option, eligible industries receive a 100% reimbursement of the net SGST paid to the State, effectively eliminating their state tax liability for the approved period.
Option 3: PLI Top-up
For companies already benefitting from the Government of India’s PLI Scheme, UP offers an additional 30% top-up (capped at 100% of Eligible Capital Investment). This adds a serious competitive edge to manufacturing units looking to expand operations.
Incentives for Innovation
Uttar Pradesh’s policy recognizes the importance of innovation in driving long-term industrial growth. Here’s how they support R&D and intellectual property rights are supported:
Intellectual Property and Research & Development (R&D)
Recognizing that innovation drives sustainable growth, the policy provides:
- R&D Setup Subsidy- Get 25% back of the expenditure(up to 10 Cr) for setting up R&D units.
- Intellectual Property Reimbursement- Receive 50% reimbursement (up to 1 Cr) for costs related to patents, trademarks, copyrights, and geographical indicators.
The Policy ensures that business with a focus on research can scale their innovations and bring them to the market place.
Creating Hubs of Excellence: Fuelling Specialized Growth
To make Uttar Pradesh a breeding ground for innovation and specialized industries, the government supports the creation of Centers of Excellence (CoEs). Here’s what you get:
- 50% of project cost up to ₹10 Cr
- Open to private companies, PSUs, and Government institutions
- 10 such COEs in the policy period with a cap of max. 2 CoEs in a sector
These CoEs will become hubs of cutting-edge training, problem-solving, and innovation for targeted industries, building an ecosystem that fosters specialized growth.
Private Industrial Parks
Uttar Pradesh is making it easier than ever to build world-class industrial parks!
If you’re a developer with at least 5 units (no single one in possession over 80% of the park area) and land of 20+ acres in Bundelkhand/Poorvanchal or 30+ acres in Madhyanchal/Paschimanchal, here’s what you get:
Capital Subsidy: 25% of ECI (excluding land cost) — Max. Up to ₹40 Cr in Madhyanchal & Paschimanchal, ₹45 Cr in Bundelkhand or Poorvanchal, and up to ₹80 Cr.
Worker Housing Support: 25% subsidy — up to ₹25 Cr (or ₹50 Cr for large parks).
100% Stamp Duty Exemption on land purchase.
Plus, incentives are released in stages- 70% after park completion, 10% post-allotment, and the final 15% once units start operations.
The government also helps with land aggregation and clearances, making your development journey smoother and faster.
Fast-Track Land Allotment for High-Impact Projects
One of the biggest hurdles in industrial growth is land acquisition. But UP’s policy ensures that high-impact projects get priority:
Super Mega Projects (₹500 Cr or above but below ₹3,000 Cr)
Mega Projects with 100% FDI or a global corporate ranking (Fortune Global-500, Forbes Global-2000, Economic Times-200)
Large+ PSUs with state/central majority ownership
Even in areas where land is auctioned, these projects will be given preferential treatment, ensuring quicker land allotment with minimal premium.
Land Reforms & Pooling: Unlocking Development Potential
In addition to simplifying land allotment, the policy also introduces reforms to unlock previously unused land:
- Pooling of barren/non-agricultural land for industrial use
- Leasing of banzar Gram Samaj Land for 30 years
- Easing Land- use changes under UP Revenue Code
- Dedicated online platforms for encumbrance-free land sales
- Fast approvals through UPSIDA and Invest UP
These reforms make land more accessible and the entire process quicker and more efficient for industrial growth.
Final Words: A Policy That Balances Power With Purpose
The UP Industrial Investment & Employment Promotion Policy 2022 (https://invest.up.gov.in/uttar-pradesh-industrial-investment-employment-promotion-policy-2022/) doesn’t just offer incentives, it fosters a dynamic and thriving ecosystem that blends infrastructure, regulation, and innovation. The policy is designed to drive sustainability, create jobs, and make a positive impact on communities, all while ensuring efficiency, scalability, and simplicity for investors.
Whether you’re planning to set up a mega manufacturing unit, a cutting-edge R&D center, or a private industrial township, Uttar Pradesh has crafted a policy environment where your vision is not only supported but fast-tracked for success.
To know more about other sector policies click (https://invest.up.gov.in/policies/)
To know more about Invest UP click (https://invest.up.gov.in/)
Uttar Pradesh has created a policy environment where your vision is not just welcomed, but fast-tracked.
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