UP Township Policy 2023: Complete Guide

50% Stamp Duty Exemption100% Development Fee Rebate100% FDI PermittedLast reviewed: Aug 2026

Note on sourcing: unlike most other policies on this site, this one has no existing MSMEUP FAQ library page to draw from. The figures below are compiled from public government and press reporting on the policy (approved March 2023) — not from a direct read of the notified Government Order. Confirm every rate, fee and threshold against the official notification before relying on it.

What Is the Policy?

The Uttar Pradesh Township Policy, 2023 replaces the state's earlier hi-tech township framework with a more flexible, license-based system for private township development. The goals: address urban housing needs across income segments, reduce haphazard development on city peripheries, and attract private and foreign investment into planned urban expansion. Licensing is overseen by a committee headed by the Secretary of the relevant Development Authority or the Additional Housing Commissioner.

Key Incentives

What	How Much
Stamp duty	50% exemption on land purchased after the township licence is granted
Land use change fee	50% rebate
Development fee	100% rebate
Land conversion fee (smaller cities)	25% reduction in cities with 5–10 lakh population; 50% reduction in cities under 5 lakh population
Foreign investment	100% FDI permitted in townships under the FDI policy

Please verify: some reporting describes the land use change fee rebate and the smaller-city conversion fee reduction as related but distinct concessions — confirm exactly how they apply (and whether they stack) against the notified policy before using these figures in a project pitch.

Eligibility & Minimum Area

Open to private developers, companies, individual investors, and consortiums
Developer must own at least 25% of the proposed township area via a registered sale deed to apply for a licence
Minimum township area: 12.5 acres in cities under 2 lakh population; 25 acres in cities over 2 lakh population; no maximum area limit
Under 50 acres: residential use only. 50 acres and above: residential and agricultural mixed use permitted

License Fees & Other Conditions

License fee ranges from about ₹50,000 to ₹2 lakh per acre depending on the city's population (plus GST) — up from a flat ₹1.5 lakh/acre under the earlier framework
Net worth/turnover requirement raised to about ₹75 lakh per acre (from ₹50 lakh)
Developer must mortgage 10% of the township land to the authority until the initial development agreement is signed
Developer must hold agreement/ownership over at least 75% of the scheme's total land (raised from 60%)
District Magistrate permission is not required for acquiring SC/ST-owned land for the project; village society or government land within the site is to be regularised within 60 days
Up to 20% variation in the licensed area is permitted
External access roads must be at least 24 metres wide; internal roads at least 12 metres

How to Apply

Identify a site meeting the minimum area and 25%-ownership condition for your city's population tier
Apply for a township licence through the relevant Development Authority
Be prepared for the 10% land mortgage requirement and the revised 75% land-holding threshold before the licence is granted

Frequently Asked Questions

Can a foreign investor participate in a UP township project?

Yes — the policy permits 100% FDI in townships under the FDI policy, alongside domestic private developers, companies, and consortiums.

What's the minimum land a developer needs to control before applying?

At least 25% of the proposed township area, held via a registered sale deed, plus meeting the minimum area threshold for the city's population tier (12.5 acres or 25 acres). The overall land-holding/agreement threshold has been raised to 75% of the scheme's total area.

Need help with your UP Township Policy application?

ClaimDesk (A NorthStar Advisors brand, Noida) helps you confirm eligibility, work through the licence and land-holding conditions, and prepare your application to the relevant Development Authority. 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: invest.up.gov.in Administered by: Housing & Urban Planning Dept. / Development Authorities 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.