Factory & Manufacturing Guide
Government Subsidies for Factories in Uttarakhand
Starting a new factory, agro-processing unit, herbal plant, or packaging workshop? You can get up to 40% government subsidy (up to ₹4 Crore) on machinery and building costs.
Which Scheme Fits Your Budget?
Under ₹25 Lakhs
MSY 2.0 Scheme
Up to 25% subsidy. Great for small flour mills, spice grinding, and local handicraft units. Simple paperwork.
₹25L to ₹50 Lakhs
Central PMEGP Scheme
35% subsidy in hill areas (max ₹17.5 Lakhs). Low bank collateral needed.
₹50L to ₹50+ Crore
Uttarakhand MSME Policy
Up to 40% subsidy (max ₹4 Crore) + 6% bank interest rebate for 5 years.
Subsidy by District
MSME Policy Factory Subsidies
Official Scale| Category | Districts / Locations | Capital Subsidy % | Max Cap | Interest Rebate |
|---|---|---|---|---|
| MSMECat A | Pithoragarh, Uttarkashi, Chamoli, Champawat, Rudraprayag | 40% | ₹40 Lakhs to ₹4.0 Crore | 6% per year |
| MSMECat B | Pauri Garhwal, Tehri Garhwal, Almora, Bageshwar | 35% | ₹35 Lakhs to ₹3.0 Crore | 5% per year |
| MSMECat C | Hill tehsils of Nainital & Dehradun (Chakrata, Kalsi, Ramnagar hills) | 30% | ₹30 Lakhs to ₹2.0 Crore | 5% per year |
| MSMECat D | Plains of Haridwar, Udham Singh Nagar, Dehradun & Nainital | 15% | ₹15 Lakhs to ₹1.0 Crore | 3% per year |
Notice:Hill districts (Category A & B) also get 100% stamp duty waiver when buying land.
Important Rule Before You Buy Machinery:
Do not purchase machinery or pay advances before getting official approval from the District Industries Centre (DIC). If you buy machines before registration, the government will reject those bills and will not pay subsidy on them.
Setting Up a Factory in Uttarakhand?
Talk to our professional subsidy advisors before ordering machinery to protect your subsidy.
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