UP MSME Policy: Capital Subsidy on Plant & Machinery

10–25% subsidy on capital investmentUP MSME PolicyNew Units / ExpansionManufacturingLast reviewed: Aug 2026

What is the Scheme?

Under the UP MSME Promotion Policy, new MSME units (and in many cases expansion/diversification) get back a percentage of the capital investment made in plant, machinery, and infrastructure. This is the biggest money in the policy — running from lakhs to crores.

How Much Money Will You Get?

Unit Category	Subsidy (approx., by region)
Micro	15–25% of investment
Small	10–20% of investment
Medium	10–15% of investment

Rates are higher in Bundelkhand/Purvanchal; lower in Gautam Buddh Nagar/Ghaziabad (Paschimanchal). Subsidy is paid in instalments and a cap applies as per policy.

Please verify: Subsidy rates and rules can change with policy updates. Before applying, be sure to check the current guidelines on the official portal.

Eligibility

Udyam-registered manufacturing MSME
New investment made during the policy period (the date commercial production starts matters)
Unit/project set up through the Nivesh Mitra portal
Valid proof of land/building, pollution NOC where applicable

Documents Required

Udyam certificate, GST registration, CA-certified investment details
Machinery invoices and payment proof (via banking channel)
Commercial production proof, factory/land documents
Chartered Engineer certificate (machinery valuation)

How to Apply

Register the unit on the Nivesh Mitra / MSME portal
File the claim within the prescribed time limit after commercial production begins
DIEPC (District Industries Centre) verification takes place
Payment in instalments after district/state-level committee approval

Biggest Mistakes to Avoid

Paying for machinery in cash (claim gets rejected), mismatches between invoices and the CA certificate, missing the claim deadline, and passing off second-hand machinery as new. These are what most often get claims stuck in scrutiny — documentation has to be perfect.

Frequently Asked Questions

Is subsidy available on old machinery?

Generally only on new machinery. Imported second-hand machinery has separate rules — verify with the policy.

What is the deadline for filing a claim?

The claim must be filed within a specified period (usually within 1 year) after commercial production begins. Delays can cause the claim to lapse.

How much will Noida units get?

Paschimanchal falls in the lowest rate slab, but on large investments this still adds up to a claim worth lakhs to crores.

Also Check Sector/Size-Specific Policies

If your investment is larger or in a specific sector, one of the policies below may offer more benefit than this general MSME policy — check whichever applies to your unit instead:

IIEP Policy — for Large/Mega/Super-Mega/Ultra-Mega investments
Textile Policy — for textile & garmenting units
Electronics Policy — for electronics manufacturing units

Need help filing a capital subsidy claim?

ClaimDesk (A NorthStar Advisors brand, Noida) handles everything from documentation to filing and follow-up. The first conversation is completely free.

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MSMEUP.com is independent information & tools — free, and not run by any consultancy. ClaimDesk is a separate, private consultancy (a NorthStar Advisors brand) for those who want professional filing help; its fee is for that service, not a government charge, and using it is entirely optional — MSMEUP's guides and tools work the same with or without it.

Official Source
Official portal: niveshmitra.up.gov.in Last reviewed: Aug 2026

This page summarizes publicly available scheme information. For the current official notification, application form and exact eligibility conditions, always confirm on the portal above before applying or filing a claim.