§1Who it is for

  • New micro, small and medium enterprises in UP
  • Expansion/diversification raising gross block and capacity by at least 25%

Useful if

New manufacturing MSMEs in UP, especially in Bundelkhand/Purvanchal.

Do not spend time on it if

Pure trading units.

§2Eligibility

  1. New MSME (or expansion/diversification with at least 25% rise in gross block and production capacity)
  2. Eligible investment period: 2 years (micro), 3 years (small), 4 years (medium) from date of application; commercial production must start within it
  3. Incentive under one head can be taken under one policy only
  4. Land cost not eligible for incentive (can count in fixed capital up to 10% of FCI)

§3Benefits

  • Capital subsidy on plant, machinery, equipment and related building, by region and size

§4Norms — pattern of assistance

  1. Bundelkhand & Purvanchal: micro 25%, small 20%, medium 15%
  2. Madhyanchal & Paschimanchal: micro 20%, small 15%, medium 10%
  3. SC/ST and women entrepreneurs: additional 2%
  4. Ceiling ₹4 crore per unit
  5. Paid in 2 equal instalments: 1st on completion of building (partial progress), 2nd when unit reaches at least 50% of commercial production capacity
  6. Total assistance under the policy capped at the unit's fixed capital investment

§5Documents

Not published

The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.

§6How to apply

  1. 1

    Apply online to the Deputy Commissioner (Industries) of the district (DIEPC)

  2. 2

    Divisional committee under Additional/Joint Commissioner Industries recommends; State Level Committee under Commissioner & Director Industries approves

§7Pros and cons

Merits

  • Paid in only 2 instalments, linked to building completion and 50% production
  • Higher rates in Bundelkhand and Purvanchal

Demerits

  • Second instalment waits until 50% capacity is reached
  • Land cost is excluded

→Related schemes

Need help with UP MSME capital subsidy?

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

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

Sources

  1. UP MSME Promotion Policy 2022 - English translation (MSME 1-Connect)
  2. UP MSME Promotion Policy 2022 - highlights (Invest UP)

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