State Government Schemes

UP MSME promotion policy 2022 aims to make the state US$1 trillion economy by helping the MSMEs to achieve 15% YoY growth in employment generation and help in promoting social & economic balance. Excemptions obtained by depositing bank guarantee equal to the amount of stamp duty. Stamp duty exemption: 1- Women entrepreneurs will be eligible for 100% stamp duty exemption in any part of the State 2- MSME industrial parks/ estates/ flatted factory complex developers will be provided 100% stamp duty exemption, on purchase of land 3. 100 percent in Purvanchal and Bundelkhand, 4. 75 percent in Madhyanchal and Paschimanchal 5. 50 percent in Gautam Buddha Nagar and Ghaziabad districts

One policy per incentive; Land is ineligible for direct subsidies and capped at 10% when taken as part of total fixed capital investment;

This scheme aims to realize the potential of Uttar Pradesh youth by establishing 1 lakh units per year in micro production and service sectors for 10 years, achieving to create 10 lakh self-employment oppurtunities. Phase 1 : 1. Loan up to ₹5 lakh — completely interest & collateral free (100% interest subsidy for 4 years) 2. Own contribution required: General – 15% | OBC – 12.5% | SC/ST/Divyang – 10% | Aspirational Districts (Chitrakoot, Chandauli, Fatehpur, Balrampur, Siddharthanagar, Shravasti, Bahraich) – 10% 3. 10% margin money grant on project cost & CGTSME loan coverage for 4 years 4. If land/building not included in project cost, minimum 10% of total project cost must be taken as term loan Phase 2: 1. Loans ₹10–20 lakh with 50% interest subsidy for 3 years. 2. Minimum 10% of project cost must be term loan & workshop/workstation costs can be included in project cost 3. CGTSME loan coverage for 3 years

21 to 40 years old; Minimum education eighth grade or its equivalent; Must have skill-related certificate/deegree/diploma under Govt. schemes or any recognized educational institution specified; Must not be availing benefits from any other central/state scheme involving capital/interest subsidy (except PM‑SVANidhi).

This scheme aims to provide self-employment oppurtunities to educated youth of UP by providing loans through nationalized banks, regional rural banks and other scheduled banks. Financial assistance: 1. Micro units in the industrial sector (project cost upto ₹25 lakh cost) and service sector (project cost upto upto ₹10 lakh cost) receive 25% margin money—maximum ₹6.25 lakh and ₹2.50 lakh respectively—which converts into a grant after two years of successful operation subject to bank verification & unit running successfully as per official rules. 2. General category beneficiaries contribute 10% of the project cost, while special category beneficiaries (SC/ST/OBC, minorities, women, and disabled persons) contribute 5%. 3. 25% subsidy for general categories, 30% for SC/ST entrepreneurs.

Educated youth of UP(Native); 18-40 years; High school passed; Non-defaulter; Should not have availed subsidy under any other central/state self‑employment scheme

This scheme benefits artisans/workers/entrepreneurs through financial incentives for the overall development of selected products under One District One Product (ODOP). Financial assistance: Provides margin money assistance on loans for ODOP-identified products. Meant for artisans / workers / entrepreneurs in ODOP sectors. Works along with bank credit.

Atleast 18 years old; ODOP-identified product; Non-defaulter;

Under this scheme, Nivesh mitra aims for a user-friendly & single window web application where Investors and Entrepreneurs can get online clearances/NOC from the concerned department with minimal running around. MSMEs should file application through this system when setting up. It can be used to check the status of the applications online, ensuring time-bound clearances without visits to different departments. Benefits: 1. Udyog Bandhu, a organization of UP Government facilitates investment in Industrial and Service sectors which has three tier structure - District-level, Divisional level and State level Udyog Bandhu which participates in various national and international conferences, exhibitions and expositions. 2. High level conferences on industry related issues are organized in Main Interaction Centers. 3. This is part of the UP MSME Policy 2022’s non‑fiscal initiatives.

Registered MSME unit;

Under this scheme, Micro units can get interest subsidy under this MSME scheme. These units are eligible for a 50% interest subsidy on loans(60% for SC/ ST and women entrepreneurs), with a maximum ceiling Rs 25 Lakh per unit, payable annually for five years. There is a provision for a reimbursement of 60% of the annual interest paid on loans for the purchase of plant and machinery. Approved MSME industrial parks/ estates/ flatted factory complex (minimum area of 4000 square metres for flatted factory complexes) projects with area of 10 acres or more, will be eligible for annual infrastructure interest subsidy of up to 50%, subject to ceiling of Rs 2 Crore, annually.

Micro units;

This scheme is under the "One District One Product" (ODOP) program of UP which aims to provide infrastructure and shared facilities to artisans and entrepreneurs engaged in producing district-specific products. This scheme's objective is to provide testing labs, design development, training centre, technical R&D centre, raw materials bank, information centre and logistics support. Financial assistance: 1. UP Govt. provides 90% of CFCs project cost(upto Rs.15crores) as financial assistance, while min of 10% borne by SPV. 2. CFCs project costing more than Rs.15 crores is supported by UP Govt. by calculating on Rs.15 crores only. 3. UP Govt. sactions capital for similar incomplete projects(previously approved) due to lack of funds. 4. SPV contribution to project cost: ▪ Up to Rs. 04.00 crore 10% ▪ Above Rs. 04.00 crore and up to Rs. 08.00 crore 20% ▪ Above Rs. 08.00 crore and up to Rs. 10.00 crore 30%

Project proposal; Identification and business registration documents; Proof of residence in the respective ODOP district; Contribution proof of 10% of the total project cost; Artisans, entrepreneurs, and businesses engaged in the production of district- specific ODOP products; The project must be located within the district identified under the ODOP scheme;

The Market Development Assistance scheme is aimed at achieving fair pricing for the artisans, weavers, entrepreneurs, and exporters of ODOP products through better marketing. Benifits including Financial assistance: 1. State & Interstate Fairs: Reimbursement of 75% or max ₹50,000 for stall charges, up to ₹7,500 (State) or ₹15,000 (Interstate) for logistics, and 3AC/AC Bus actual travel fare. 2. International Trade Fairs: Reimbursement of 75% or max ₹2,00,000 for stall charges, ₹25,000 (B2B) or ₹50,000 (B2C) for logistics, Economy Airfare, and 3AC/AC Bus for domestic travel legs. 3. E-commerce Setup: Direct financial support of 75% or max ₹10,000 for starting a business on recognized websites/portals. 4. International Group Promotion: Up to 75% of expenditure (max ₹75 Lakh) for participating in foreign or indigenous international fairs via official Councils, provided a minimum of 20 units participate. 5. Branding & Market Study: Reimbursement of 75% (max ₹100 Lakh) for Export Councils to organize craft festivals, seminars, buyer-seller meets, and international market studies for ODOP products.

Artisans, entrepreneurs, and MSMEs involved in the production of ODOP-specific products;

Under this scheme, the craftsmen will be provided Incentive assistance for fairs and setting up stalls including reimbursement of transportation cost. UP Govt. provides support for crafts like carpets, bangles, locks, zari embroidery, handloom, chikankari, stone carving, wood carving, black pottery, cane weaving, wooden toys, terracotta, brass art, jute wall hangings, and more. Financial Assistance: To help the artisans market their products, the state government provides a financial aid of Rs. 20,000, at the rate of Rs. 10,000 per fair, to cover transportation costs and stall rentals for attending up to two fairs.

Handicraft identity card; Minimum age-18 years;

This scheme strengthens the means of livelihood of traditional artisans such as carpenters, tailors, basket weavers, barbers, goldsmiths, blacksmiths, potters, confectioners, cobblers, masons and handicraftsmen of urban and rural areas of the state and to upgrade their standard of living. Benifits: 1. Free 6 days skill enhancement training for eligible artisans. 2. After successful training, advanced toolkits based on the latest technology related to the trade are distributed.

Minimum age-18 years; Traditional craftsmanship; Non-beneficiary of toolkit in last 2 years; Must be a resident of UP Must not have availed toolkit benefit in last 2 years Must not be a defaulter

This scheme aims to provide technical, craft, and entrepreneurship training tailored to their district's identified product. Benefits: 1. Selected persons will be provided skill and entrepreneurship development training for a total of 10 days under the scheme. 2. The training program will be free and non-residential. 3. The trainee will be given Rs. 200 per day as honorarium.

Minimum age-18 years; Native of Uttar Pradesh; Non-beneficiary of toolkit in last 2 years; One person per family; Must not be a defaulter of a nationalized bank.

This scheme provides skill development and entrepreneurial training to SC/ST youth and women to foster self-employment and job readiness. Training services are provided at the centers. Benifits: 1. 4-month program consisting of 1 month theoretical and 3 months practical training at various field units. 2. On successful completion, participants receive an advanced toolkit related to their specific trade. 3. Provision of an honorarium to cover food and transport expenses during the training period. 4. Training is demand-driven and conducted in employment-oriented trades selected based on local requirements.

SC/ST candidates; 18-45 years of age;

Under this scheme, OBC candidates will be given training to enhance entrepreneurship through skill development promotion. Training structure is one month of theoretical training and three months of practical training for total of 37 candidates. Upon completion of training candidates are given toolkit of respective trades. OBC scheme also provides stipend/honorarium during training (same as SC/ST model). ( part of standard DIUP training programs.)

18-45 years of age; Eighth pass for technical trades training;

Under the scheme, training is given for skill upgradation of traditional craftsmen, in which the use of latest technology and advanced type of tools and equipment’s are also taught. Benefits: 1. Training amount- Rs. 60,000/- per Training 2. No. of trainees- 10 per training 3. Training period- six months training

18-35 years of age (age relaxation - 5 years for SC/ST); Handcraftsman;

ESDP scheme promotes new enterprises and enhance capabilities of existing MSMEs by providing necessary training and skill-building oppurtunities for aspiring and entrepreneurs. Free of cost training provided through multiple programs, which renges from one week to six weeks duration. Modules include Entrepreneurship Awareness Programme (EAP), Entrepreneurship cum Skill Development Programme (E-SDP), Advance Entrepreneurship cum Skill Development Programme (Advance E- SDP), Management Development Programme (MDP) and Advance Management Development Programme (Advance MDP).

18 years and above; ndustrial/business/self- employment venture startups; 40% of benificiaries should be from SC/ST/Women/Physically Handicapped;

This scheme promotes improved technology to MSEs in the best manner in areas such as product quality improvement, environment improvement, energy efficiency, qualitative packaging testing facilities and, computerized quality control. Provides support for standards, procedures, conformity & certification, ERP implementation, consultancy & branding, and Intellectual Property (IP) verification assistance. Financial Assistance: 50% subsidy or up to ₹5 lakh for installation of advanced plant & machinery. 50% interest subsidy on machine purchase loans (max ₹1 lakh per year, up to 5 years).

Registered MSME; Project proposal; Comply with all statutory requirements including environmental and labor laws;

This Scheme provides financial incentives for manufacturing and service MSMEs to promote industrial growth and credit accessibility. Capital Investment Subsidy: Eligible only on term loan amount actually disbursed by Bank/Financial Institution; Category 1 Talukas: 25% of term loan (Max ₹35 lakhs); Category 2 Talukas: 20% of term loan (Max ₹30 lakhs); Category 3 & Municipal Corporation Areas: 10% of term loan (Max ₹10 lakhs). Interest Subsidy: Eligible for new/existing enterprises commencing production during the operative period (05‑Oct‑2022 to 04‑Oct‑2027); Subsidy reimbursed after interest payment to Bank/Institution; Category 1: 7% interest subsidy (Max ₹35 lakhs per annum for 7 years); Category 2: 6% interest subsidy (Max ₹30 lakhs per annum for 6 years); Category 3 & Municipal Corporation Areas: 5% interest subsidy (Max ₹25 lakhs per annum for 5 years); Additional 1% subsidy: for women, differently‑abled, and registered startups in manufacturing/service sector; Additional 1% subsidy: for young entrepreneurs (<35 years at term‑loan sanction); Minimum 2% interest must be borne by the enterprise even after subsidies.

Registered Industrial unit; Assistance for new machinery only; Limit of one expansion and one modernization; For Expansion/Diversification: Investment >50% of gross fixed capital (min. 60% in plant and machinery); For Modernization: Investment >25% of gross fixed capital in new technology/processes;

This scheme provides interest‑based assistance to new service‑sector MSMEs (only the service activities listed in Annexure‑A). Interest Subsidy (Service): (1) Eligible for new MSMEs commencing services during the operative period 05‑Oct‑2022 to 04‑Oct‑2027; (2) Reimbursed after payment of interest to the bank/financial institution; (3) Subsidy slabs by location—Category‑1 talukas: 7% (max ₹35 lakh per annum) for 7 years; Category‑2 talukas: 6% (max ₹30 lakh per annum) for 6 years; Category‑3 & Municipal Corporation areas: 5% (max ₹25 lakh per annum) for 5 years; (4) +1% additional for women, differently‑abled, and registered startups; (5) +1% additional for entrepreneurs below 35 years on the term‑loan sanction date; (6) In all cases, the enterprise must bear at least 2% interest.

New MSME service enterprise (Annexure‑A list), DoCP within 05‑Oct‑2022 to 04‑Oct‑2027; term loan from bank/FI; reimbursement after payment; enterprise bears ≥2% interest; youth/women/DA/startup add‑ons as above

This scheme provides assistance to MSME manufacturing units for National/International quality certifications (e.g., BIS/ISI/WHO‑GMP/Hallmark, others as notified). Assistance: 50% of certification‑related expenditure and 50% of cost of quality‑testing equipment/instruments/machinery required for that certification (purchased before certificate issuance), capped at a total of ₹10 lakh during the operative period; up to 3 certificates permitted. ISO and ERP are excluded from this scheme under the 2022 framework.

Manufacturing MSME with eligible certificate from notified body; expenses before the certificate date; not a statutory‑mandated certificate; max 3 certificates in period; applies within time window per guideline

Provides 75% reimbursement of patent-related expenditure up to ₹25 lakh per applicant; eligible costs include patent attorney fees, patent service centre fees, patent registration fees, and equipment purchased to develop the patent; attorney fee capped at ₹50,000 for domestic patents and ₹2,00,000 per country for international patents; 50% disbursed after publication/notification and remaining after patent certificate; application must be filed within 1 year of publication/notification.

Any individual/MSMEs;