UTTAR PRADESH MICRO, SMALL & MEDIUM ENTERPRISES PROMOTION POLICY 2022

Key policy highlights

Micro, small and medium enterprises in the Bundelkhand and Purvanchal region of the State will be eligible for capital subsidy of 25%, 20% and 15%, respectively
Micro, small and medium enterprises in the Madhyanchal and Paschimanchal region of the State will be eligible for capital subsidy of 20%, 15% and 10%, respectively
SC/ ST and women entrepreneurs will be eligible for 2% additional, capital subsidy
Capital subsidy is capped at Rs 4 Crore/ unit
Capital subsidy will be provided in 2 equal installments. First installment is payable once the construction of related buildings is completed. Second installment is payable once at least 50% of commercial production has begun.

Only micro units will be eligible for interest subsidy
50% interest subsidy, payable annually for five years, subject to ceiling of Rs 25 Lakh/ unit
60% interest subsidy for SC/ ST and women entrepreneurs, payable annually for five years, subject to ceiling of Rs 25 Lakh/ unit

Approved MSME industrial parks/ estates/ flatted factory complex (minimum area of 4000 square metres for flatted factory complexes) projects with area of 10 acres or more, will be eligible for annual infrastructure interest subsidy of up to 50%, subject to ceiling of Rs 2 Crore, annually
Infrastructure interest subsidy will be payable for 7 years

MSMEs will be eligible for 100% stamp duty exemption in the Purvanchal and Budelkhand region, and 75% in the Madhyanchal and Paschimanchal region except for Gautam Budh Nagar and Ghaziabad wherein stamp duty exemption will be 50%
Women entrepreneurs will be eligible for 100% stamp duty exemption in any part of the State
MSME industrial parks/ estates/ flatted factory complex developers will be provided 100% stamp duty exemption, on purchase of land

MSMEs will be encouraged to manufacture high quality products
MSMEs will be promoted to attain quality standards like ZED, GMP, Hallmark etc. To this end, fiscal assistance of up to 75% (maximum Rs 5 Lakh) will be provided to MSMEs, as reimbursement
Financial assistance of 75% (maximum Rs.10 lakh) will be provided for attaining patents and GI tags
Attorney fee of Rs 50,000 and Rs 2,00,000 will be reimbursed for obtaining national and international patents/ GI tag, respectively
Financial assistance of 75% for implementing ERP solutions (maximum Rs 1 Lakh) and ICT solutions (maximum Rs 5 Lakh)

Fiscal assistance of 50% of the project cost (maximum Rs 10 crore) for establishment of CETPs
Financial assistance of 50% of the project cost (maximum Rs 75 lakh) for implementing Zero Liquid Discharge facility
Fiscal assistance of up to 50% of the project cost (maximum Rs 50 Lakh) for establishing boiler facility as common facility (minimum 10 MSMEs will be required to undertake such project)
Promoting green practice and environmental audits for MSME like energy and water conservation audits – reimbursement of 75% (maximum Rs 50,000) towards audit services fee and 50% (maximum Rs 20 Lakh) towards purchase of auditor recommended equipment/ machinery
Reimbursement of up to 50% (maximum Rs 2.5 Lakh) of the consultancy charges incurred towards obtaining green rating for industrial buildings
Reimbursement of up to 50% (maximum Rs 10 Lakh) towards expenses incurred for the establishment of the Environment Management Laboratory/ Environment Management System