Eligibility and registration

Typically: a new unit, or an existing unit undertaking expansion/diversification/modernisation above a threshold (commonly 25% of existing gross fixed capital investment and 25% additional capacity), which is registered on Nivesh Mitra, has commenced commercial production within the policy period, and is not on the negative list.

A schedule in IIEPP 2022 and most sectoral policies listing activities excluded from incentives — typically tobacco products, gutkha/pan masala, liquor (other than under Excise Policy), single-brick kilns, polythene below permitted micron, and certain highly polluting or purely trading activities. Read the negative list before counselling an investor.

Generally: land (up to a capped percentage of total project cost), site development, building and civil works, plant and machinery, electrical installations, pollution control equipment, testing equipment, and technical know-how fees. Generally excluded: working capital, second-hand machinery (unless imported and within age limits), vehicles, office furniture, goodwill, and the value of land above the cap.

Imported second-hand plant & machinery is often permitted subject to a residual life certificate (commonly 10 years) from a chartered engineer. Domestic second-hand machinery is usually excluded. Verify per policy.

For all MSME Policy 2022 benefits, yes. For large-unit policies it is not required, but the unit must be registered on Nivesh Mitra with a valid CAF and have all statutory registrations (GST, PAN, factory licence, CTE/CTO from UPPCB).

No. Proprietorship, partnership, LLP, private/public limited company, cooperative and Section 8 companies are generally eligible. Some policies (GCC, FDI/Fortune 500) require a specific corporate form or parentage.

Only where the policy expressly covers services — IT/ITeS, GCC, data centre, tourism, logistics, warehousing, film, healthcare and education policies do. Pure trading is almost always excluded.

Most policies mandate a minimum proportion of domiciled UP workers (commonly 70–75% of total workforce, and a higher proportion in supervisory/skilled roles for large categories). IIEPP 2022 additionally sets absolute annual employment obligations by category — for example, a Large unit is expected to employ at least 300 UP youth per year and a Mega unit at least 600, with a booster subsidy where a high share of the workforce is women. Verify current numbers against the notified GO.

GB Nagar and Ghaziabad sit in the lowest incentive slab under the regional gradation used by IIEPP 2022, MSME Policy 2022 and most sectoral policies. Bundelkhand and Purvanchal get the highest slab; Madhyanchal and Paschimanchal (excluding GB Nagar & Ghaziabad) sit in between. This is deliberate — the state is steering capital eastward and to Bundelkhand.

(Note for GB Nagar DIEPC: this is the single most common source of investor disappointment in the district. Counsel it upfront. The offsetting pitch is infrastructure, market access, Jewar airport, and the fact that several policies — Data Centre, GCC, Semiconductor, ECMP, Private Business Park — carry near-uniform incentives statewide and are therefore the strongest instruments for this district.)

Yes, each policy annexes the district list. Bundelkhand = the 7 districts of Jhansi and Chitrakoot divisions. Purvanchal = the notified eastern districts (Azamgarh, Basti, Devipatan, Gorakhpur, Mirzapur, Varanasi and Prayagraj divisions, per the annexure). Always use the annexure in your policy — the lists vary slightly.