🏭 Introduction
The Uttar Pradesh MSME Promotion Policy 2022 aims to transform the state into a hub for micro, small, and medium enterprises by offering a range of incentives and support mechanisms. This policy focuses on enhancing competitiveness, fostering innovation, and promoting balanced regional development.
🎯 Key Objectives
- Stimulate investment in the MSME sector.
- Promote regional economic balance by incentivizing enterprises in less developed areas.
- Encourage technological upgradation and quality improvement.
- Facilitate ease of doing business through streamlined processes.
💰 Financial Incentives
- Capital Subsidy
Eligible MSMEs can avail capital subsidies based on their location and enterprise size.
Region | Micro Enterprises | Small Enterprises | Medium Enterprises |
Bundelkhand & Purvanchal | 25% | 20% | 15% |
Madhyanchal & Paschimanchal | 20% | 15% | 10% |
- Additional 2% subsidy for SC/ST and women entrepreneurs.
- Maximum subsidy: ₹4 crore per unit.
- Disbursement: In two equal installments—first upon completion of building construction, and second after achieving at least 50% of commercial production.
- Interest Subsidy
- Micro enterprises: 50% interest subsidy on term loans for 5 years, up to ₹25 lakh per unit.
- SC/ST and women entrepreneurs: Eligible for 60% interest subsidy under the same terms.
- Infrastructure Interest Subsidy
- Approved MSME parks, estates, or flatted factory complexes (minimum area of 10 acres) are eligible for a 50% interest subsidy on loans taken for infrastructure development, capped at ₹2 crore annually for 7 years.
🧾 Other Incentives
- Stamp Duty Exemption
- 100% exemption in Bundelkhand and Purvanchal regions.
- 75% exemption in Madhyanchal and Paschimanchal regions (excluding Gautam Budh Nagar and Ghaziabad, where it’s 50%).
- 100% exemption for women entrepreneurs across the state.
- 100% exemption for developers of MSME parks, estates, or flatted factory complexes.
- EPF Reimbursement
- 100% reimbursement of employer’s EPF contribution for new MSME units for a period of 5 years.
🧪 Quality and Technology Support
- Quality Certification: 75% reimbursement (up to ₹5 lakh) for obtaining certifications like ZED, GMP, Hallmark, etc.
- Patent and GI Registration:
- 75% reimbursement (up to ₹10 lakh) for obtaining patents or GI tags.
- Reimbursement of attorney fees: ₹50,000 for national and ₹2 lakh for international patents.
- Technology Upgradation:
- 50% subsidy (up to ₹10 crore) for setting up Common Effluent Treatment Plants (CETPs).
- 50% subsidy (up to ₹75 lakh) for implementing Zero Liquid Discharge facilities.
- 50% subsidy (up to ₹50 lakh) for establishing boiler facilities as common infrastructure (minimum of 10 MSMEs required).
📈 Market and Financial Support
- Equity Support: 20% reimbursement (up to ₹5 lakh) on expenses incurred for raising funds through stock exchanges.
- Mandi Fee Waiver: New food processing units with investment in plant and machinery exceeding ₹5 crore are eligible for a 5-year waiver on mandi fees for raw material purchases.
🏗️ Infrastructure Development
- MSME Parks and Flatted Factory Complexes:
- Developers are eligible for 50% reimbursement on interest for loans taken against the project cost, capped at ₹2 crore annually for 7 years.
- 100% stamp duty exemption on land purchase for development.
- Land Allotment:
- Gram Sabha land (5 acres or more) within 5 km of expressways can be developed as mini industrial estates.
- Priority allotment to entrepreneurs from the same development block.
📅 Policy Duration and Eligibility
- Policy Validity: 5 years from the date of notification.
- Eligible Investment Period:
- Micro enterprises: 2 years.
- Small enterprises: 3 years.
- Medium enterprises: 4 years.
- Commercial Production: Units must commence production within the eligible investment period to avail benefits
