UTTAR PRADESH TEXTILE & GARMENTING POLICY 2022
Period (2022-2027)
Key Policy Highlights
Land Subsidy Reimbursement of 25% of land cost on purchase of land in industrial areas developed by the Government Development Authorities, except in Gautambudh Nagar district. In Gautambudh Nagar district, this land cost subsidy is 15% of the land cost.
Stamp Duty exemption Land, Shed or Industrial Building purchased or taken on lease from the State or Central Government, or their undertakings will be eligible for exemption from stamp duty. 75% exemption of Stamp Duty to units setting up in Gautambudh Nagar district and100% exemption of Stamp Duty to units setting up in remaining districts of the state.
- Capital Subsidy
Unit’s Level Investment in Plant & Machineries (Amount in Crores) Minimum Employment Generation Percentage of Capital Subsidy Percentage of additional Capital Subsidy for the Unit’s established in Bundelkhand and Poorvanchal Maximum limit of Capital Subsidy (Amount in Crores) 1 2 3 4 5 6 First <=10 <50 15% NIL 1.00 Second <=10 50 25% 10% 2.00 Third 10 but >= 50 200 25% 10% 10.00 Fourth 50 but >= 100 300 25% 10% 20.00 Fifth 100 but >= 200 500 25% 10% 40.00 Sixth >= 200 1000 25% 10% 100.00
Subsidy 60% of the annual interest paid to the bank against TUFS related plant &machineries. Infrastructure Subsidy:
- a. 50% of the project cost for developing self-use infrastructural amenities such as (i) Road; (ii) Drainage & Water Supply; (iii) Power Supply subject to a maximum of INR 3 Crore.
- b. 50% of the project cost for establishing ETP & DG Sets, maximum up to INR 5 Crore.
- c. 25% of the project cost for developing in-house training facility, testing laboratory, QC Labs, R&D Centre, maximum up to INR 2.5 Crore.
- d. 25% of the project cost for developing staff quarter, worker’s hostel or dormitory, maximum up to INR 5 Crore.
100% Exemption from Electricity Duty to new Textile and Garmenting Units for a period of 10 years.
Units in PM MITRA Park, which employees more than 50 persons, will be provided power tariff subsidy of INR 2 per unit for 5 years. The upper limit of this power tariff INR 60 Lakh per annum per unit.
Employment Generation Subsidy: Subsidy of INR 3,200/- per worker per month will be provided to mega and super mega garmenting units, except in Gautambudh Nagar and Ghaziabad district, for a period of 5 years.
- Freight Reimbursement: To promote exports of garments, freight cost of container from unit to port will be reimbursed, for 5 years as per following
- a) 75% reimbursement for 2 years
- b) 50% reimbursement for next 2 years
- c) 25% reimbursement in fifth year
Incentive for Private Textile Park: The Government of Uttar Pradesh will provide incentive for developing integrated textile and apparel park in a minimum area of 25 acres, with plug and play facility and CETP. Financial assistance of 50% of the project cost (excluding cost of land), will be provided maximum up to INR 50 Crore per park.
- For Starting New Employment in Production: –
- 75% capital subsidy to set up 05–20 handlooms or 05–10 power-looms in a shed, maximum of INR 20 Lakh for handloom and INR 60 Lakh for power-loom.
- Subsidy of 50% on rent of flatted factories allotted by State Agencies for 5 years and 75% capital subsidy on Plant & Machinery, maximum up to INR 25 Lakh per unit.