Land purchased or taken on lease from the State or Central Government, or their undertakings (Corporation/Council/Board/Company/Institution) will be eligible for exemption from stamp duty (on submission of Bank Guarantee). The Bank Guarantee will be released after the start of commercial production by the unit and Joint inspection by the Assistant Commissioner, Handloom/Deputy Commissioner, Handloom and the Department of Stamp & Registration, Government of Uttar Pradesh.
Textile & Garmenting units to be set up in the state (except Gautam Budh Nagar district) will be entitled for 100% exemption of stamp duty. In Gautam Budh Nagar district, 75% of stamp duty will be exempted.
Land purchased in any part of the State for the development of infrastructure facilities (Such as Integrated Transport & Commercial Centre, Exhibition Centre, Warehouse, Water-Supply, Sewage lines, Sewage Treatment Plant, Solid Waste Management Plant, Effluent Treatment Plant) for Textile and Garmenting industry will be eligible for 100% exemption of stamp duty.
100% exemption of stamp duty will be made available to the developer of the PM MITRA Park and private textile park, except in Gautam Budh Nagar district.
100% exemption of stamp duty will be made available to the first buyer of plot/unit to be set up in a PM MITRA Park and 50% exemption of stamp duty will be made available to the first buyer of every plot/unit to be set up in a textile park/estate developed by a private sector.
100% exemption of stamp duty will be available to Sericulture (Chaaki and Koya production), threading units to be set up in any part of the State.
Calculation of stamp duty exemption will be based on the prevailing circle rates as on the date of purchase of land for all of the above.
Land Cost
Land cost subsidy shall be provided to the textile and garmenting units, on purchase of land in industrial areas developed by the Government Agencies/Department and other development authorities.
A subsidy of 25% of land cost will be reimbursed to investors who buy land directly from such Government agencies.
In Gautam Budh Nagar district, this subsidy will be 15% of land cost.
The subsidy will however, be limited to 10% of the total project cost and only 10% of the effective land cost will be included while estimating the project cost.
This reimbursement of land cost subsidy will be made only when the unit starts commercial production within five years of buying the land.
This subsidy shall also be provided to the investors who buys land in Lucknow/Hardoi to set up a textile and garmenting unit within the proposed PM MITRA Park.
The PM MITRA Park will be operated through a SPV, owned by the Government of Uttar Pradesh and Government of India.
A Capital Subsidy of 25% of the investment made on purchase of Plant and Machinery will be reimbursed to the textiles and garmenting units, which generates minimum employment of 50.
In addition to the above, reimbursement of additional capital subsidy at the rate of 10 percent will be provided to the units set up in Poorvanchal and Bundelkhand region of the state, as per the table given below.
The maximum limit of the Capital Subsidy is INR 100 Crore per unit.
In level First : Investment on Plant & Machinery is <=10 Crore and Minimum Employment Generation is <50 then Rate of Capital Subsidy is 15% and Additional Capital Subsidy for units set up in Poorvanchal and Bundelkhand is O% ( 15% and Upper Cap is 1 Crore )
In level Second : Investment on Plant & Machinery is <=10 Crore and Minimum Employment Generation is 50 then Rate of Capital Subsidy is 25% and Additional Capital Subsidy for units set up in Poorvanchal and Bundelkhand is 10% ( 35% and Upper Cap is 2 Crore )
In level Third : Investment on Plant & Machinery is >10 Crore but <=50 Crore and Minimum Employment Generation is 200 Rate of Capital Subsidy is 25% and Additional Capital Subsidy for units set up in Poorvanchal and Bundelkhand is 10% ( 35% and Upper Cap is 10 Crore )
In level Fourth : Investment on Plant & Machinery is >50 Crore but <=100 Crore and Minimum Employment Generation is 300 Rate of Capital Subsidy is 25% and Additional Capital Subsidy for units set up in Poorvanchal and Bundelkhand is 10% ( 35% and Upper Cap is 20 Crore )
In level Fifth : Investment on Plant & Machinery is >100 Crore but <=200 Crore and Minimum Employment Generation is 500 Rate of Capital Subsidy is 25% and Additional Capital Subsidy for units set up in Poorvanchal and Bundelkhand is 10% ( 35% and Upper Cap is 40 Crore )
In level Sixth : Investment on Plant & Machinery is >200 Crore and Minimum Employment Generation is 1000 Rate of Capital Subsidy is 25% and Additional Capital Subsidy for units set up in Poorvanchal and Bundelkhand is 10% (35% and Upper Cap is Capital Subsidy 100 Crore )
Subsidy of 25% of the project cost will be reimbursed, for construction of staff-quarter, worker’s hostel/dormitory, subject to maximum of INR 5 Crores per unit.
Interest Subsidy
Interest Subsidy on Plant and Machinery provided to the textile and garmenting units on purchase of Plant & Machinery eligible under the TUFS/ATUFS or amended scheme of the Ministry of Textiles, Government of India
60% amount of the annual interest paid by the unit on the loan taken from commercial banks/financial institutions for plant and machinery will be reimbursed for a maximum period of 07 years
The maximum limit of this interest subsidy for the textile and garmenting units in the state (except Gautam Budh Nagar district) will be INR 1.5 Crore per annum per unit. The upper limit of this subsidy for units in Gautam Budh Nagar district will be INR 75 Lakhs per annum per Unit.
To promote export of garments, 25% to 75% reimbursement of freight cost of the container from unit to port, will be provided to new Garmenting units, for a period of 5 years as per table below. The units which are availing freight related incentives under the U.P. Export Promotion Policy, will not be eligible for the Freight Reimbursement under this policy. However, the units will be eligible for incentives under other relevant categories of U.P. Export Promotion Policy.
75% over the first two years, 50% over the subsequent two years, and the remaining 25% in the fifth year.
Four special exhibitions will be organised every year in big cities of the country outside Uttar Pradesh to promote the sale of silk, handloom, power loom products produced by the weavers of Uttar Pradesh. The weavers will be provided assistance to participate in such exhibitions. The approximate expenditure on each exhibition will be INR 50 Lakh.
Weavers, Master Weavers, Weaver Co-operative Societies, Handloom/Power loom/Textile Units (Micro Units) of the state will be given financial assistance to participate in up to 3 exhibitions/events within the country, which are organised by any Export Council established by the Government of India or State Government or any textile related events of notable agencies. The government officials shall also be sent to these exhibitions/events to incorporate the learning / best practices in the state. A grant of 90% of the total expenditure for participation up to two (02) persons will be given to the participants on reimbursement basis.
Preference will be given by State Government departments and their agencies to the Powerloom and Handloom products manufactured in state while purchasing items like uniforms, blankets, other textile products such as Sarees, dress material etc.
The State Government shall endeavour to sensitise large Indian and international brands and retailers to source from Uttar Pradesh, to help provide strong market linkage especially to MSME units in the state.
The Government of Uttar Pradesh will promote development of Integrated Textile and Apparel Park through Public Private Participation (PPP Mode) to be developed in a minimum area of 25 acres with Plug and Play facilities including Common Effluent Treatment Plant (CETP).
Subsidy of 50% of the project cost for establishment of Effluent Treatment Plants (ETPs) and DG Sets, subject to maximum of INR 5 Crore for each unit. The ETP and DG Set should be as per norms set up by the Central Pollution Control Board (CPCB), National Green Tribunal (NGT) or any statutory body of Government of India / Uttar Pradesh. This subsidy will be provided only in case of set up of unit on undeveloped land parcels.
Electricity duty/Solar Power
100% exemption from electricity duty will be given to the new textile and garmenting units for a period of 10 years.
Electricity produced by new textile and garmenting units, from Captive Power Plants and used for self-consumption, will be exempted from electricity duty for a period of 10 years.
As per the rules of the Department of Energy, Government of Uttar Pradesh, the Textile & Apparel Parks and Units consuming more electricity than a specified threshold will be permitted open access as per Electricity Act, 2003.
Efforts will be made to reduce power tariff by innovative methods like Time of the Day metering and harnessing of renewable sources especially in Bundelkhand.
It will be ensured that textile clusters/parks/units that consume more power than a specified threshold and have the facility of independent feeders, whether paid by them or not, are not subjected to power cuts as far as possible. No other loads will be connected to such independent feeders.
