Stamp Duty Exemption: Eligible units will be provided 100% exemption from stamp duty. The exemption will be granted against a bank guarantee of equivalent amount, which will be released upon commencement of commercial production.
Land Cost
Stand-alone footwear, leather products and machinery units in Madhyanchal, Purvanchal and Bundelkhand will receive land cost grant up to 35%.
In Western UP (Paschimanchal / “Paschimanchal” / “Western UP”), the grant is 25%.
Mega anchor units and clusters get higher subsidies: up to 80% grant in backward areas (Madhyanchal/Purvanchal/Bundelkhand) and 75% in Western UP / Paschimanchal.
The land subsidy is applicable only if land is acquired from industrial authorities / state government institutions / clusters under the policy.
Note: When land subsidy is availed, the cost of land is excluded from future capital subsidy calculations.
Capital subsidy (as above) to stand-alone units in backward regions: 30% subsidy, up to ₹ 45 crore over 5 years.
For units in Western UP, subsidy is 20%, up to ₹ 30 crore over 5 years.
For mega anchor units / clusters: Capital subsidy of 35%, up to ₹ 700 crore over 5 years. However, annual cap on subsidy is ₹ 140 crore. For Western UP, cap is ₹ 120 crore per year.
Grants for design-innovation labs / footwear prototyping centres: 50% of cost, up to ₹ 1 crore per unit.
For R&D / innovation (via Centres of Excellence): up to 50% grant of project cost, maximum ₹ 10 crore per CoE. Up to 10 CoEs allowed statewide (one per district).
Standalone Footwear & Leather Product Manufacturing Units: Paschimanchal: 20% of eligible capital investment, disbursed over 5 years, max ₹200 Cr (annual cap ₹40 Cr)
Madhyanchal, Purvanchal & Bundelkhand: 30% of eligible capital investment, over 5 years, max ₹600 Cr (annual cap ₹120 Cr)
Footwear & Leather Machinery Manufacturing Units : Paschimanchal: 20% of eligible capital investment, max ₹200 Cr over 5 years (₹40 Cr/year cap)
Madhyanchal, Purvanchal & Bundelkhand: 30% of eligible capital investment, max ₹600 Cr over 5 years (₹120 Cr/year cap)
Allied Leather Units : 25% of eligible capital investment, disbursed over 5 years.
Maximum subsidy ₹1200 Cr.Annual cap per unit ₹240 Cr.
Mega Anchor Units – Paschimanchal : 30% of eligible capital investment over 5 years.
Maximum subsidy ₹1000 Cr.
Annual cap ₹200 Cr.
Mega Anchor Units / Clusters – Madhyanchal, urvanchal & Bundelkhand: 35% of eligible capital investment over 5 years.
The policy plans to set up training centres, skill-development institutes, design innovation labs, product-development hubs as part of industrial parks.
Up to 10 Centres of Excellence (CoEs) during the policy period, across the state, to support leather & footwear sector — these CoEs will be hubs for training, R&D, and innovation
Environmental / sustainability certifications (like LEED, ISO 14001, LWG) are incentivized with a 75% subsidy (max ₹1 crore) for obtaining them.
Testing Equipment
Financial support for setting up design innovation labs and prototyping centers (as above) — helps improve product design and quality.
Patent And GI Tags
Reimbursement of 70% of expenses incurred for registration of patents, copyrights, trademarks, geographical indications (GIs) — up to ₹ 1 crore per unit.
This supports innovation, brand building, and protection of intellectual property for leather & footwear units.
Transport & Logistics Subsidy: If a company relocates its machinery from another country to Uttar Pradesh, a subsidy of 75% of expenses incurred for relocation will be provided; maximum ₹ 10 crore per company.
For export-oriented units, there is a provision of reimbursement of 50% of transport costs for exports to markets (excluding Nepal, Bangladesh, Bhutan) for the first three years under some reports.
Incentives to encourage sustainable leather industry practices:50% reimbursement of expenses related to carbon-credit certification, energy audits, renewable-energy certifications (RECs) — up to ₹ 50 lakh per unit.
Subsidy of 50% (max ₹ 1 crore) for adoption of biodegradable tanning agents, waterless dyeing, bio-based alternatives.
Subsidy of 75% (max ₹ 1 crore) for obtaining international sustainability/environmental certifications (e.g. LEED, ISO 14001, LWG)
For development of private industrial parks / leather-footwear parks / clusters : Parks of 25–100 acres: Capital subsidy of 25% of eligible capital investment (on infrastructure, not land cost), up to ₹ 45 crore.
Parks of 100+ acres: Same 25% subsidy with a higher cap — up to ₹ 80 crore.
100% exemption on stamp duty for land purchase related to such parks.
It is mandatory that no single unit occupies more than 80% of the park area; 25% of land must be reserved for greenery & common infrastructure (roads, utilities, etc.).
Completion timelines: Parks of 25–100 acres must be completed within 5 years; parks of 100+ acres within 6 years
