“Major Incentives” for Uttar Pradesh (UP) Food Processing Units

1. Capital Subsidy :

• 35% of incurred expenditure on plant, machinery and technical civil work subject to max. Rs. 5 Crores.
• In case of expansion and modernization/up-gradation, capital subsidy will be 25% subject to maximum of Rs. 1 Crore.

2. External Development Charges: Rebate of 75% on external development charges for Food Processing Industries to be setup in UP on a land where no developmental work has been done by Authorities.

3. Stamp Duty Exemption : 100% exemption from stamp duty for the land purchased for the establishment of food processing industry.

4. Subsidy on solar power projects for electricity supply to processing units : 50% subsidy on solar power utilities in rural areas and 90% subsidy for women entrepreneurs in the same category.

5. 25% Freight Subsidy on exports excluding Nepal, Bangladesh and Bhutan.

6. Scheme for value addition and cold chain infrastructure:

• Subsidy of 35% for infrastructure pertaining to Cold Chain and Value Addition and a subsidy of 50% up to Rs. 10 Crores for frozen storage/deep freezer, value addition and processing infrastructure.
• Infrastructure for Agro processing clusters: Minimum 5 food processing units with minimum investment of Rs. 25 crores, 35% of the eligible project cost subject to max. of Rs. 10 crores will be provided as grant.

7. Scheme for Creation of backward and forward linkages : 35% of the eligible project cost subject to maximum of Rs. 5 crores.

8. Interest Subsidy for purchase of Reefer Vehicles and Mobile Pre-Cooling vans: For a period of 5 years subject to max. Rs. 50 Lacs.

9. Support for modern technology adoption to food processing start-ups engaged in Agricultural value chain development, coverage/production/productivity estimation and evidence-based decisions : Upto Rs. 5 Crores.

10. Promotion of decentralized processing and storage : Self Help Groups (SHGs)/ Farmers Producers Organisations (FPOs)/Farmers will be eligible for assistance based on their projects subject to a max. of 50% of the total project cost or Rs. 50 lacs.