Textile Policy: 25–35% Capital Subsidy on Plant & Machinery

25% + 10% extra in Poorvanchal/Bundelkhand, ₹100 Cr capTextile & GarmentingMin. 50 EmploymentPolicy: Effective Oct 2022Last reviewed: Aug 2026

What is the Scheme?

The Uttar Pradesh Textile and Garmenting Policy 2022 offers one of the largest capital subsidies on plant & machinery for anyone setting up a textile or garmenting unit in the state — along with interest subsidy, stamp duty exemption, electricity duty exemption, and freight reimbursement.

How Much Money Will You Get?

Category	Capital Subsidy
Standard textile/garment unit (min. 50 employment)	25% of plant & machinery investment
Unit in Poorvanchal / Bundelkhand	+10% extra (up to 35% total)
Silk reeling unit (₹1 Cr+ investment)	20%
Sericulture (chaaki worm rearing, koya production, etc., up to ₹1 Cr)	15% (SC/ST entrepreneurs: 20%)

The maximum cap is ₹100 crore per unit. The policy has been effective since 17 October 2022.

Please verify: the employment condition, regional bonus, and cap can change — check the official policy document before applying.

Other Benefits

Interest subsidy on plant & machinery
Land cost subsidy and stamp duty exemption
Employment generation subsidy
Freight reimbursement and electricity duty exemption

Eligibility

New unit or expansion in textile/garmenting/silk/sericulture sector
Minimum 50 direct employment for standard units
Registration on the Nivesh Mitra portal

How to Apply

Register the project on the Nivesh Mitra portal
Start commercial production and maintain employment records
File the capital subsidy claim within the prescribed timeline
Payment in instalments after verification and committee approval

Biggest Mistakes to Avoid

Failing to meet the minimum 50-employment condition, mismatches in machinery invoices, and not providing location proof needed for the Poorvanchal/Bundelkhand bonus are what most often hold up claims.

Frequently Asked Questions

Will a small unit with fewer than 50 employees get the subsidy?

The main 25%+ capital subsidy requires the 50-employment condition. Smaller units may find the general capital subsidy under the UP MSME Policy (see the Capital Subsidy guide) a better fit.

Does the stamp duty exemption need to be claimed separately?

Yes, the stamp duty exemption is obtained through a separate process before registry — it's difficult to get a refund after registry, so this needs to be arranged in advance.

Need help filing a claim under the Textile Policy?

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

Chat on WhatsApp

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.