IIEP Policy: Capital Subsidy / SGST Reimbursement for Large Investments

Up to 25% of ECI, ₹40–45 Cr capLarge / Mega / Super-Mega / Ultra-MegaLarge/Medium IndustryPolicy: 2022Last reviewed: Aug 2026

What is the Scheme?

The Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022 (commonly called IIEPP-2022) is the state's flagship investment-promotion policy — aimed at Large, Mega, Super-Mega, and Ultra-Mega category manufacturing investments. It is separate from the UP MSME Policy — the MSME Policy is for micro/small units (see the Capital Subsidy guide), while IIEPP targets much larger investments, typically running into crores.

How Much Money Will You Get?

The investor gets a one-time choice of one out of three mutually-exclusive options:

Option	Details
Capital Subsidy	Up to 25% of Eligible Capital Investment (excl. land) — capped at ₹40 Cr in Madhyanchal/Paschimanchal, ₹45 Cr in Bundelkhand/Poorvanchal
Net SGST Reimbursement	A share of the net SGST paid by the unit is reimbursed over a fixed period
PLI Top-Up	Additional state top-up on incentives already received under the central PLI Scheme

On top of this, "booster" incentives can add extra value: an Employment Booster (2–4% extra, higher for women's employment), an Export Booster, and an Ecosystem Booster.

Please verify: the investment category (Large/Mega/Super-Mega/Ultra-Mega), subsidy rate, and cap vary by investment size and region. Check the full conditions in the official policy document.

Eligibility

A new manufacturing investment falling in the Large, Mega, Super-Mega, or Ultra-Mega category (category depends on investment size)
Unit/project must be registered through the Nivesh Mitra portal
Investment and commencement of commercial production must fall within the policy period

Documents Required

Detailed Project Report (DPR), CA-certified investment details
Land/building documents, environment/pollution NOC where applicable
Machinery invoices and payment proof, commercial production proof

How to Apply

Register the project on the Nivesh Mitra portal (niveshmitra.up.nic.in)
Choose one of the three options (capital subsidy / SGST reimbursement / PLI top-up)
File the claim within the prescribed timeline after commercial production begins
Payment follows approval by the district/state-level committee

Biggest Mistakes to Avoid

Confusing this with the MSME Policy (they have different forms and conditions), trying to switch the incentive option after choosing (it's a one-time choice), and misclassifying the investment category in the DPR are the biggest reasons large claims get stuck.

Frequently Asked Questions

Can MSME units also apply under IIEPP?

IIEPP generally targets larger investments (Large category and above); smaller/micro/small MSMEs usually fit better under the UP MSME Policy. Check the right category for your investment size on the Nivesh Mitra portal.

Which of the three options should I choose?

This depends on your project's profit margin, GST turnover, and whether you're also covered under the central PLI scheme. The choice is one-time, so it's worth building a financial projection to compare before deciding.

Need help choosing the right option under IIEPP?

ClaimDesk (A NorthStar Advisors brand, Noida) handles everything from financial comparison 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.nic.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.