State IncentiveUP MSME Dept.Verified 7 May 2026Official source

UP MSME Promotion Policy 2022 — Capital Investment Subsidy

Capital Investment Subsidy for new and expanding manufacturing MSMEs in Uttar Pradesh under MSME Promotion Policy 2022. Subsidy rate depends on both region and enterprise size — Bundelkhand & Purvanchal (higher-priority regions): Micro 25%, Small 20%, Medium 15%; Madhyanchal & Paschimanchal: Micro 20%, Small 15%, Medium 10%. SC/ST and women entrepreneurs get an additional 2% across all regions. Maximum subsidy: ₹4 crore per unit. Land cost may be included in Fixed Capital Investment but is capped at 10% of total FCI. Disbursement is in two installments: 50% after factory construction is complete, and 50% after the unit reaches 50% of planned production capacity. Additional benefits: Micro units get a 50% interest subsidy on term loans for 5 years (up to ₹25L; 60% for SC/ST/Women); 100% stamp duty exemption in Bundelkhand/Purvanchal (women get 100% statewide); 75% reimbursement of quality certification costs (ZED, GMP, Hallmark, ISO) up to ₹5L. Apply via the MSME 1-Connect platform (Sandes app OTP required).

Maximum amount

₹4.0Cr

Typical payout

₹20.0L

Processing time

4–16 weeks

Application window

Open year-round

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Eligibility criteria

Company type: Private Limited, LLP, Proprietorship, Partnership Firm
Stage: Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+)
States: Uttar Pradesh
Sectors: manufacturing, food_processing, textile, leather, engineering, chemicals, agritech, pharma
Prerequisites: Udyam (MSME) registration required

Documents required

Sandes App Profile (OTP Prerequisite)

Active profile on the Government of India's Sandes app, used to receive OTPs for portal login and subsidy tracking on Nivesh Mitra. This is a prerequisite condition, not an uploadable document. No canonical key exists.

Tip: Install Sandes and register with your mobile number before starting the application — OTP delivery can take a few minutes.

Udyam Registration Certificate

Valid Udyam Registration Certificate mapped to the UP-based manufacturing unit, confirming Micro, Small, or Medium status.

Tip: The NIC code on Udyam must match the manufacturing activity being claimed; mismatches are flagged during district verification.

Business Constitution Proof — Partnership Deed / LLP Agreement / MoA & AoA with COI

Legal constitution document — Partnership Deed for firms, LLP Agreement for LLPs, or Memorandum and Articles of Association with Certificate of Incorporation for companies.

Tip: Submit the most recent version; amendments must be attached to the original deed or MoA.

PAN Card of Entity and All Directors / Partners / Proprietor

PAN cards of the enterprise entity and of every director, partner, or proprietor — must match the exact corporate entity.

Tip: All active directors or partners must provide PAN; entity PAN alone is insufficient.

GST Registration Certificate

GSTIN registration certificate matching the exact corporate entity applying for the subsidy.

Tip: If below GST threshold, provide a self-declaration; the GSTIN address must match the factory location.

Land Ownership Proof — Sale Deed or Lease Agreement

Registered land purchase deed for owned land, or an officially executed lease agreement valid for at least 5 years for leased premises.

Tip: Land cost can be included in FCI but is capped at 10% of total FCI; lease must be registered to be accepted.

Term Loan Sanction Letter

Formal term loan sanction letter from a bank or financial institution detailing the credit approved for infrastructure investment (conditional — required for bank-financed units). No canonical key exists for loan sanction letters.

Tip: Must show the sanctioned amount and purpose; disbursement certificates may also be requested at the inspection stage.

CA Certificate on Fixed Capital Investment

Chartered Accountant certificate with itemised breakdown of all expenses toward Fixed Capital Investment (plant, machinery, buildings, infrastructure).

Tip: Must include UDIN; the FCI breakdown must reconcile with purchase invoices — discrepancies are flagged at the district committee stage.

Caste Certificate (SC / ST)

Competent authority-issued SC or ST caste certificate for promoters belonging to reserved categories, required to claim the additional 2% capital subsidy (conditional).

Tip: Issued by Revenue Officer of Tehsildar rank or above; self-declarations are not accepted.

Women Entrepreneur Proof

Documentation proving women entrepreneurship — shareholding pattern or partnership deed showing majority women ownership — required to claim the additional 2% subsidy or 100% stamp duty exemption (conditional).

Tip: Shareholding must be in the woman's name; CA-certified shareholding statements are the most commonly accepted form.

Chartered Engineer's Certificate

Valuation certificate from a Chartered Engineer for self-fabricated or custom-built industrial machinery, establishing asset value for FCI calculations (conditional). No canonical key exists for engineer valuation certificates.

Tip: Required only when machinery is self-fabricated; standard purchased machinery with vendor invoices does not need this.

Power Connection Sanction Letter and Meter Card

Formal electricity allocation letter from UPPCL or the relevant utility and active meter card confirming industrial power supply to the factory (conditional). No canonical key exists for utility connection documents.

Tip: Connection must be in the enterprise's name and for industrial use; domestic connections are disqualified.

First Commercial Sale Invoice

Initial bill of sale for finished goods, used to officially timestamp the commencement of commercial operations (conditional — required for the second installment disbursement at 50% capacity). No canonical key exists for sales invoices.

Tip: The invoice date establishes your commercial production start date — ensure consistency with other commencement proofs.

Environmental Clearances / Consent to Operate

Consent to Operate or its renewal from the Uttar Pradesh Pollution Control Board (conditional — required for manufacturing units in regulated pollution categories).

Tip: Check your industry type against UPPCB's Red/Orange/Green/White category list; White category units may be exempt.

How to apply for UP MSME 2022

Download the Sandes app and create a profile using your registered mobile number. The MSME 1-Connect portal uses Sandes for OTP-based verification — you will not be able to register or log in without an active Sandes profile.Open portal

Register on the MSME 1-Connect platform. Select "Login / Registration", supply basic corporate identifiers (enterprise name, Udyam number, PAN), verify your mobile via Sandes OTP, and set up your login credentials.Open portal

Log in to MSME 1-Connect. Navigate to "Apply for LOC date", choose the "MSME Policy 2022" pathway, and use the Incentive Calculator on Nivesh Mitra to estimate your eligible subsidy based on your region (Bundelkhand/Purvanchal or Madhyanchal/Paschimanchal) and enterprise size (Micro/Small/Medium) before proceeding.Open portal

Fill the capital incentive form with all industrial statistics: Fixed Capital Investment (land limited to 10% of FCI, building, plant & machinery), date of commencement, employment details, and banking information for disbursement.Open portal

Upload all required documents: Sandes-verified mobile proof, Udyam certificate, constitution proof, PAN & GSTIN, land/lease deed, term loan sanction letter, and CA certificate on FCI. Also upload conditional documents as applicable (special category certificate, chartered engineer's certificate, power sanction letter, environmental clearances).Open portal

Submit the form and save the auto-generated system receipt / tracking code. Track application status on the Nivesh Mitra portal using this code. Sandes OTP may be required at submission.Open portal

District Industries & Enterprise Promotion Centre (DIEPC) reviews your documentation and conducts a physical site inspection to verify all invoiced plant and machinery are installed and operational. Address any queries or document deficiencies promptly to avoid application reversion.

The case moves through three committee levels: District-level Committee (DLC) → Divisional-level Committee → State-level Committee (SLC). Once SLC grants final approval, subsidy is disbursed electronically in two instalments: Instalment 1 (50%) after factory construction is complete; Instalment 2 (50%) after the unit reaches at least 50% of its planned commercial production capacity.Open portal

Frequently asked questions

Who is eligible for UP MSME 2022?

UP MSME 2022 is available to Private Limited, LLP, Proprietorship, Partnership Firm companies at the Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+) stage, across Uttar Pradesh. Udyam (MSME) registration is required.

How much funding does UP MSME 2022 provide?

UP MSME 2022 provides up to ₹4.0Cr. Most applicants receive around ₹20.0L.

How long does UP MSME 2022 approval take?

The typical processing time from submission to disbursement is 4–16 weeks.

Is UP MSME 2022 currently accepting applications?

Yes, UP MSME 2022 is currently active and accepting applications. Application window: Open year-round.

Do I need Udyam registration for UP MSME 2022?

Yes, Udyam (MSME) registration is required. Register at udyamregistration.gov.in before applying.

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Information is based on publicly available scheme guidelines. Last verified 7 May 2026. Always verify with official sources before applying.