UP to offer additional incentives to footwear, leather sector for investment in Bundelkhand, Purvanchal | Lucknow News
Lucknow: The recently promulgated Uttar Pradesh Footwear, Leather, and Non-Leather Sector Development Policy 2025 has extended a unique opportunity to those willing to invest in the underdeveloped regions of Bundelkhand and Purvanchal.“Through the policy, the UP govt has offered special concessions in land cost grants and capital subsidies to encourage footwear industries in these two underdeveloped regions,” said an official spokesperson. Districts like Lucknow, Kanpur, Gorakhpur, Varanasi, Prayagraj, Jhansi, Chitrakoot, Azamgarh, and Banda will directly benefit. This policy will not only provide employment to millions of local youths but also establish the state’s global identity as a major exporter of footwear and leather products. Adding that this will have a direct impact on industrial development, employment, and investment here, the spokesperson said: “Under the policy, standalone footwear, leather products, and machinery units will receive up to 35% land cost grants in Central, Eastern, and Bundelkhand regions, while in Western regions, it will be 25%. Mega anchor units and clusters in these areas will benefit from up to 80% land cost grants, compared to 75% in Western regions.” They also informed that this benefit is particularly important because the cost of establishing industries in these areas is considered relatively high. “The land subsidy will only apply to land acquired from industrial authorities, state govt institutions, or clusters formed under this policy,” the spokesperson said. Officials concerned said that the subsidy amount will be determined based on the actual land allocation value, excluding stamp duty and registration fees. If a unit avails of land subsidy, the cost of land will not be considered when calculating future capital subsidies. To provide more benefits to leather and footwear manufacturing companies, the Uttar Pradesh govt, in addition to central govt assistance, will offer extra capital investment subsidies. “Standalone units in Central, Eastern, and Bundelkhand will receive a 30% capital subsidy, with a maximum of Rs 45 crore over five years. For Western regions, it will be 20% with a maximum of Rs 30 crore over five years,” they said, adding, “similarly, allied leather units across the state will receive a 25% capital subsidy, with more priority given to these regions.”
