UP Working Capital Interest Subsidy

Provides an interest subsidy of 5% on working capital loans, capped at ₹50,000 per annum for 5 years, to eligible silk reeling units in Uttar Pradesh.

The Working Capital Interest Subsidy is a key incentive under the Uttar Pradesh Textile and Garmenting Policy 2022, designed to bolster the state's vital textile sector. This program aims to alleviate the financial burden on silk reeling units by subsidizing the interest paid on their working capital loans. By reducing operational costs, the Government of Uttar Pradesh seeks to encourage the growth and sustainability of local silk production, particularly those units that prioritize using koya (silk cocoons) produced within Uttar Pradesh. This initiative supports the broader policy goal of fostering a robust and self-reliant textile and garmenting ecosystem in the state, promoting employment and economic development in rural and semi-urban areas.