🏭 Introduction
The Uttar Pradesh Textile and Garmenting Policy 2022 aims to transform the state into a global textile manufacturing hub by attracting investments, generating employment, and promoting sustainable growth across the entire value chain.
🎯 Objectives
- Attract investment of ₹10,000 crore in the textile and apparel sector.
- Generate employment opportunities for 5 lakh individuals.
- Develop five textile and apparel parks through private sector participation.
- Increase earnings of handloom and power loom weavers by 50%.
- Modernize power looms and promote their operation through solar energy.
- Enhance silk yarn production in the state.
💰 Financial Incentives
- Capital Subsidy
- 25% subsidy on the investment made in plant and machinery for units generating employment for at least 50 persons.
- Additional 10% subsidy for units set up in Purvanchal and Bundelkhand regions.
- Maximum limit: ₹100 crore per unit.
- Land Cost Subsidy
- 25% reimbursement on land cost for units purchasing land in industrial areas developed by government agencies.
- In Gautam Budh Nagar district, the subsidy is 15%.
- The subsidy is limited to 10% of the total project cost.
- Stamp Duty Exemption
- 100% exemption on stamp duty for units in all districts except Gautam Budh Nagar, where the exemption is 75%.
- 100% exemption for developers and first buyers in PM MITRA Parks and private textile parks.
- Infrastructure Subsidy
- 50% subsidy on the cost of developing self-use infrastructural amenities like roads, drainage, water supply, and power supply, subject to a maximum of ₹3 crore.
🌐 Special Incentives for PM MITRA Park Units
- Power Tariff Subsidy: ₹2.00 per unit for 5 years for units employing at least 50 persons, with a maximum limit of ₹60 lakh per annum per unit.
- Open Access of Electricity: Permission granted as per the Electricity Regulation Act and rules of the Department of Energy, Government of Uttar Pradesh.
- Stamp Duty Exemption: 100% exemption for developers and first buyers in PM MITRA Parks.
🚚 Freight Reimbursement for Garmenting Units
- 75% reimbursement of freight cost from unit to port for the first 2 years.
- 50% reimbursement for the next 2 years.
- 25% reimbursement in the fifth year.
- Applicable for new garmenting units not availing similar incentives under the U.P. Export Promotion Policy.
🧑🏭 Employment Generation Subsidy
- ₹3,200 per worker per month for mega garmenting units in all districts except Gautam Budh Nagar and Ghaziabad, for a period of 5 years.
- Applicable to units cumulatively setting up the first 15,000 sewing machines.
🧵 Incentives for Silk Industry
- 15% capital subsidy on margin money for units involved in rearing of chaaki worm, koya production, reeling, and spinning in the sericulture sector, with a maximum capital investment of ₹1 crore. For SC/ST entrepreneurs, the grant is 20%.
- 20% capital subsidy for silk reeling units requiring a capital investment of ₹1 crore or more.
- 5% interest subsidy on working capital loans for silk reeling units producing at least 75% thread from koya produced in Uttar Pradesh, for a period of 5 years, with a maximum limit of ₹50,000 per annum.
🏗️ Support for Private Textile Parks
- Financial assistance up to 50% of the project cost, with a maximum of ₹50 crore, for the development of integrated textile and apparel parks in a minimum area of 25 acres.
- The park must have at least 10 units, with no single unit allotted more than 40% of the total available area.
📅 Policy Duration
The policy is effective for 5 years from the date of its notification (October 17, 2022).
