UP A&D Policy 2024 — eligibility, benefit, norms, documents (Uttar Pradesh)

§1Who it is for

A&D manufacturing units, MSMEs, startups, vendors, anchors and MRO units in UP — especially in the six corridor nodes: Agra, Aligarh, Kanpur, Lucknow, Jhansi, Chitrakoot

Manufacturers ready to build or expand a unit in a UP corridor node

Traders or service firms without manufacturing investment

Unit must meet at least one: supplies A&D materials/equipment; startup/MSME entering A&D for the first time; has grants/supply orders from A&D units; MoU with a foreign OEM or offset supply order; has done assembly/manufacture/design for Army, Navy, Air Force, paramilitary, DRDO etc.; manufactures/tests/supplies to Indian or foreign A&D OEMs; new A&D unit holding requisite licences; A&D MRO unit
MSME (per GoI MSME Act definition) qualifies as A&D supplier if at least 50% of turnover is from manufacturing and it supplies within the A&D chain to anchor/vendor units or DPSUs
Startup: DPIIT-recognised and engaged in or entering A&D
Vendor unit: in same cluster as an anchor and supplying at least 40% of output to the anchor
Anchor: investment above Rs 200 crore or 1,000 direct jobs (Bundelkhand/Poorvanchal incl. Jhansi, Chitrakoot nodes); above Rs 300 crore or 1,500 jobs (Madhyanchal/Paschimanchal incl. Agra, Aligarh, Kanpur, Lucknow nodes); Mega Anchor above Rs 1,000 crore
Expansion/diversification eligible if gross block rises by at least 25% through new investment
Must invest after effective date and obtain Letter of Comfort/confirmed allotment; units taking this policy cannot take other UP state policy incentives (GoI schemes allowed)

Back-ended capital subsidy 25% (Paschimanchal & Madhyanchal) or 35% (Bundelkhand & Poorvanchal) on eligible capital investment
Corridor land on lease at 1% of land cost for 10 years and 1.5% thereafter (UPEIDA)
Land rebate 25% of gross sale price in the corridor (Mega Anchor and Anchor units)
100% stamp duty exemption on land purchase/lease (against bank guarantee)
Transport subsidy 50%: imported plant & machinery up to Rs 5 crore; finished goods up to Rs 5 crore per year for 5 years
Green infrastructure subsidy 25% up to Rs 1 crore
CFC / skilling centre support 50% of capital cost up to Rs 10 crore per centre
Women entrepreneurs: additional 2% over all subsidies
Marketing assistance for MSMEs/startups for 5 years: up to Rs 15 lakh (one international event/yr), Rs 5 lakh (one national event/yr)
Patent fee reimbursement: 100% domestic, up to 50% international, max Rs 25 lakh per unit (after grant)
Quality certification (AS 9100, NADCAP etc.) for MSMEs: 100% of fee up to Rs 1 lakh per unit per year; trademark fee 100% up to Rs 1 lakh per year
Training cost for up to 20 persons per unit at up to Rs 10,000 per person per month for 1 year
CoE support up to Rs 10 crore per institution per year

Capital subsidy paid in equal annual instalments: total up to Rs 500 crore over 5 years; Rs 500–1,000 crore over 10 years; above Rs 1,000 crore over 15 years
Eligible investment period from cut-off date: Mega Anchor 7 years; Anchor 5 years; MSMEs/vendors/startups 4 years
Imported second-hand machinery up to 40% counts for capital subsidy
Ineligible: working capital, goodwill, pre-operative expenses, capitalised interest, technology/know-how, consultancy, royalty, designs, patents, licences, software, IPR
Eligible capital investment includes land with development, buildings, other construction, plant & machinery, infrastructure facilities
Projects started up to 5 years before effective date count only if production starts after it and 80% of investment is after it
Anchors may set up vendor units on up to 20% of their land
Approval procedure as under UP IIEPP 2022; UPEIDA is nodal agency for disbursement; online incentive portal (OIMS) with Nivesh Mitra planned

Tick each one as you get it ready.

1
Apply for land/incentives through UPEIDA and Nivesh Mitra single window
2
Obtain Letter of Comfort under the policy; claim disbursement through UPEIDA after production

Among the highest A&D capital subsidies seen: 25–35% back-ended — UP policy 2024
Cheap corridor land: 1% annual lease rent for 10 years — UP policy 2024
MSME-specific help: certification, patents, trade-fair support — UP policy 2024
Three DTIS test facilities approved in UP — PIB Jul 2025

Capital subsidy is back-ended and paid over 5–15 years — UP policy 2024
Cannot combine with other UP state policies — UP policy 2024
Certification reimbursement is small (Rs 1 lakh per year) compared with AS9100/NADCAP costs — UP policy 2024
Detailed procedure lives in Hindi SOP/GOs; English text uploaded only in May 2026

Eligibility check, DPR and application file — ask us on WhatsApp.

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.