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UP Warehousing and Logistics Policy, 2022: Features, incentives, eligibility, implementation

UP Warehousing and Logistics Policy, 2022: Features, incentives, eligibility, implementation

POLICY AT A GLANCE

Item Position
Official title Uttar Pradesh Warehousing and Logistics Policy, 2022
Policy publication Dec-22
Administrative department Infrastructure and Industrial Development Department
Nodal agency Uttar Pradesh State Industrial Development Authority
Policy validity Five years from its effective date, unless amended or replaced earlier
Principal beneficiaries Developers of warehouses, silos, cold-chain facilities, logistics parks, truck terminals, dry ports, cargo terminals, berthing terminals and inland vessels
Main support Capital subsidy, stamp-duty exemption, land-use and development-charge concessions, electricity-duty exemption and vessel-purchase assistance
Higher-support locations Designated logistics zones near major freight and transport infrastructure
Application mechanism Uttar Pradesh State Industrial Development Authority and Nivesh Mitra, under implementation procedures and department-specific standard operating procedures
Current status Policy and implementation procedures issued; the state government continues to list the framework as operative

  

The policy replaced the Uttar Pradesh Warehousing and Logistics Policy, 2018, as the state’s principal framework for warehousing, freight and logistics infrastructure. It remains distinct from the Uttar Pradesh Multi-Modal Logistics Park Policy, 2024, which is designed for much larger integrated projects involving investment of at least Rs 1,000 crore.

 

What is the Uttar Pradesh Warehousing and Logistics Policy?

The policy provides financial and regulatory support for a wide range of storage and freight-handling facilities. Its scope includes warehouses, silos, cold-chain units, logistics parks, truckers’ parks, inland container depots, container freight stations, air-freight stations, cargo terminals, inland-waterway berthing terminals and inland vessels.

 

A warehouse primarily stores goods, while a logistics park combines storage with activities such as cargo handling, transport coordination, packaging, distribution and related services. An inland container depot or container freight station handles containerised cargo under customs control. A berthing terminal supports freight movement through inland waterways. These categories are treated differently because their investment, land, infrastructure and regulatory requirements vary.

 

Why was the policy introduced?

Uttar Pradesh is a large landlocked state with substantial agricultural production, manufacturing activity and consumer demand. Goods produced in the state must often travel long distances to ports, airports and major domestic markets. Inadequate storage and fragmented freight infrastructure can increase transport costs, handling losses and delivery times.

 

The policy seeks to develop an integrated logistics ecosystem aligned with the National Logistics Policy, 2022. It also aims to use expressways, the Eastern and Western Dedicated Freight Corridors, airports and inland waterways to support private investment in freight and storage infrastructure.

 

The expected effects — lower logistics costs, reduced agricultural losses, faster freight movement and employment — are policy objectives. They should not be described as outcomes already realised without project-level official evidence.

 

What are the main objectives?

The policy seeks to:

  • Increase modern warehousing and cold-chain capacity;
  • Promote logistics parks and dry ports;
  • Improve cargo handling through road, rail, air and inland waterways;
  • Encourage private investment and public-private partnerships;
  • Identify logistics zones near major freight corridors;
  • Improve supply chains for agriculture, manufacturing, retail and exports;
  • Reduce transaction and regulatory costs;
  • Develop truck parking and driver facilities;
  • Encourage technology, quality certification and skilled employment;
  • Improve Uttar Pradesh’s performance under national logistics assessments.

 

Which projects are eligible?

The policy prescribes separate minimum investment and size thresholds: 

Project category Minimum investment
Logistics park Not specified as a universal monetary threshold
Truckers’ park Not specified as a universal monetary threshold
Warehouse Rs 20 crore
Silo Rs 30 crore
Cold-chain facility Rs 15 crore
Inland container depot or container freight station Rs 50 crore
Type-A cargo terminal Approval under the Union government’s Gati Shakti Cargo Terminal scheme
Type-B cargo terminal Rs 20 crore
Berthing terminal Rs 20 crore
Inland vessel Not specified as a project-investment threshold

 

The project must meet both the category definition and the applicable investment, area or capacity requirement. A conventional godown, transport office or vehicle-parking area does not automatically qualify merely because it performs a logistics-related activity.

 

What are designated logistics zones?

The policy provides for designated logistics zones near strategically important transport infrastructure, including the Eastern and Western Dedicated Freight Corridors, expressways and the Noida International Airport area. Projects established within these notified zones may receive higher capital-subsidy ceilings.

 

A site does not qualify for the enhanced ceiling merely because it is near a highway or railway line. It must fall within a location formally designated as a logistics zone by the competent state authority.

 

What financial incentives are available?

Capital subsidy for storage facilities

Eligible warehouses, silos and cold-chain facilities may receive a capital subsidy equal to 15 per cent of eligible capital investment.

 

The maximum benefit is:

  • Rs 5 crore for a project elsewhere in Uttar Pradesh;
  • Rs 10 crore for a project within a designated logistics zone.

Eligible capital investment generally relates to approved buildings, plant, machinery and technical infrastructure. Land cost, working capital and unrelated expenditure should not be assumed to qualify without confirmation under the implementation procedures.

 

Capital subsidy for dry ports and logistics parks

Developers of eligible inland container depots, container freight stations, air-freight stations and logistics parks may receive 25 per cent of eligible capital investment.

 

The ceiling is:

  • Rs 25 crore elsewhere in Uttar Pradesh;
  • Rs 50 crore in a designated logistics zone.
  • Cargo and berthing terminals

Eligible cargo terminals may receive 20 per cent of eligible capital investment, capped at Rs 15 crore. The policy covers both cargo terminals approved under the Union government’s Gati Shakti Cargo Terminal scheme and eligible state-defined Type-B terminals.

 

Berthing terminals for inland-waterway freight may receive capital assistance capped at Rs 15 crore. The official Invest UP policy page describes the rate as 25 per cent, while another official incentive summary describes it as 20 per cent. Applicants should therefore obtain the current sanctioned rate from the Uttar Pradesh State Industrial Development Authority before preparing the financial model.

 

Inland-vessel purchase subsidy

The policy provides a purchase subsidy equal to 25 per cent of the cost of an eligible inland vessel, capped at Rs 5 crore per vessel. The benefit is limited to the first 50 qualifying vessels.

 

The vessel must have a minimum carrying capacity of 500 tonnes and comply with the applicable inland-waterway, registration, safety and operating requirements.

 

What front-end concessions are available?

Stamp-duty exemption

Stamp-duty relief varies by project and location:

  • Storage facilities: 100 per cent in Bundelkhand and Purvanchal; 75 per cent in Madhyanchal and Paschimanchal, excluding Gautam Buddha Nagar and Ghaziabad; 50 per cent in Gautam Buddha Nagar and Ghaziabad;
  • Dry ports, logistics parks and truckers’ parks: 100 per cent.

The exemption remains subject to the approved transaction, applicable government order and required eligibility certificate. It should not be treated as automatic before registration.

 

Land-use and development charges

All eligible projects may receive:

  • A 75 per cent concession in land-use conversion charges;
  • A 75 per cent exemption from development charges.

 

The exact benefit depends on the original land use, planning authority and project approval. Relief under the policy does not replace the need to obtain formal land-use permission.

 

Ground coverage

The policy permits ground coverage of up to 60 per cent for eligible storage facilities, dry ports and logistics parks, subject to planning, fire-safety and building requirements.

 

Ground coverage means the share of the plot occupied by buildings at ground level. The remaining area may be required for roads, loading, parking, fire access, drainage, landscaping and utilities.

 

What operating-stage incentives are available?

Eligible projects may receive 100 per cent exemption from electricity duty for ten years. This does not mean free electricity: power tariffs, demand charges and other non-exempt charges remain payable.

 

Storage facilities may also receive reimbursement of eligible quality-certification costs, capped at Rs 5 lakh per project. The policy provides for skill-development support, though the applicable employee, training and reimbursement conditions must be confirmed from the implementation procedures.

 

What land and industry-status benefits are available?

Eligible logistics projects are treated as industrial activities for specified land-use purposes. Industrial Floor Area Ratio and industrial land rates may therefore apply where projects are located in areas reserved for industrial activity.

 

Logistics parks involving capital investment of at least Rs 500 crore may qualify for fast-track land allotment. In areas where direct allotment is permitted, the relevant Industrial Development Authority may allot land directly. In auction-based areas, allotment may be made at the base rate plus 15 per cent, subject to competition among applicants.

 

Cargo and berthing-terminal developers may also receive public land under a Build, Own, Operate and Transfer arrangement for 35 years, subject to the applicable public-private partnership agreement.

 

How can an applicant access the benefits?

The Uttar Pradesh State Industrial Development Authority is the nodal agency. The government has issued implementation procedures for applications, along with separate standard operating procedures for Transport Department-related provisions, stamp-duty exemption and other concessions.

 

The broad process involves:

  • Identifying the correct logistics-project category;
  • Preparing a detailed project report;
  • Establishing control over eligible land;
  • Applying through the prescribed mechanism, including Nivesh Mitra where applicable;
  • Obtaining appraisal and eligibility approval;
  • Securing land-use, building, environmental, fire and transport approvals;
  • Completing the minimum investment and infrastructure;
  • Beginning commercial operations;
  • Submitting audited expenditure and compliance documents;
  • Claiming the approved back-end incentives.

Capital subsidies are generally disbursed after commercial operations begin, while stamp-duty and certain land-related concessions are front-end benefits.

 

Implementation and progress so far

The government has issued the policy, application procedures and department-specific standard operating procedures. Uttar Pradesh was placed in the “Achiever” category of the Logistics Ease Across Different States assessment from 2022 to 2024 and was officially reported as an “Exemplar” among landlocked states in the 2025 assessment.

 

This ranking reflects the state’s overall logistics infrastructure, services and regulatory performance. It should not be treated as evidence that every improvement resulted solely from the 2022 policy.

 

The official sources reviewed did not provide one consolidated policy dashboard showing:

  • Applications received;
  • Projects approved;
  • Capital subsidy sanctioned;
  • Subsidy disbursed;
  • Warehousing capacity commissioned;
  • Logistics parks completed;
  • Private investment realised;
  • Employment generated specifically under the policy.

 

Key challenges and limitations

High project thresholds: Smaller warehouses and cold-chain businesses may not meet the minimum investment or size requirements.

 

Reimbursement structure: Capital subsidy is linked to commercial operations and verified expenditure, requiring developers to arrange initial finance.

 

Location dependence: Higher ceilings in logistics zones may concentrate projects near major corridors.

 

External connectivity: A logistics park depends on roads, rail access and utilities beyond its internal infrastructure.

 

Multiple approvals: Customs, transport, environmental, building and fire requirements vary by project category.

 

Limited project-level disclosure: Public data on sanctions, disbursements and operational capacity remain fragmented.

 

What businesses should keep in mind

Applicants should verify:

  • The correct project category;
  • Minimum investment, area and capacity;
  • Whether the site lies in a notified logistics zone;
  • Eligible capital-investment components;
  • Land-use and development-charge calculations;
  • Stamp-duty approval before registration;
  • Electricity-duty conditions;
  • Commercial-operation deadlines;
  • Whether benefits overlap with another state policy;
  • The latest implementation procedure and standard operating procedure.

 

Eligibility and benefits remain subject to the notified policy, subsequent amendments, applicable government orders and approval by the competent authority.

 

FAQs

What is the minimum investment for a warehouse?

An eligible warehouse requires investment of at least Rs 20 crore and a minimum built-up area of 1 lakh square feet.

 

What capital subsidy is available to storage facilities?

The subsidy is 15 per cent of eligible capital investment, capped at Rs 5 crore generally and Rs 10 crore in a designated logistics zone.

 

What subsidy is available to a logistics park?

An eligible logistics park may receive 25 per cent of eligible capital investment, capped at Rs 25 crore generally and Rs 50 crore in a designated logistics zone.

 

Is stamp duty exempt?

The rate varies for storage facilities by region, while eligible dry ports, logistics parks and truckers’ parks may receive full exemption.

 

Which agency implements the policy?

The Uttar Pradesh State Industrial Development Authority is the nodal agency.

 

Is the 2024 Multi-Modal Logistics Park Policy the same framework?

No. The 2024 policy separately covers integrated multi-modal parks involving investment of at least Rs 1,000 crore.

 

How long is the policy valid?

It is valid for five years from its effective date, unless amended or replaced earlier.

 

Conclusion

The Uttar Pradesh Warehousing and Logistics Policy, 2022 provides a wide-ranging incentive framework for storage facilities, logistics parks, dry ports, cargo terminals, inland-waterway infrastructure and truck facilities.

 

Its main benefits include capital subsidies of 15-25 per cent, higher ceilings in designated logistics zones, stamp-duty relief, land-use concessions and electricity-duty exemption. Its effectiveness will depend on project financing, timely infrastructure connectivity, transparent approvals and public disclosure of capacity actually commissioned.

 

The principal indicators to monitor are projects approved, investment realised, warehousing and cargo-handling capacity created, subsidies disbursed and freight volumes handled.

 

Sources

  • Uttar Pradesh Warehousing and Logistics Policy, 2022, Infrastructure and Industrial Development Department, Government of Uttar Pradesh; official English policy document published in December 2022.
  • Uttar Pradesh Warehousing and Logistics Policy, 2022 — policy, incentives and government orders, Invest UP, Government of Uttar Pradesh; last updated May 25, 2026.
  • Implementation procedures for applications under the Uttar Pradesh Warehousing and Logistics Policy, 2022, Government of Uttar Pradesh; published through Invest UP in April 2023.
  • Standard operating procedure for Transport Department provisions under the Uttar Pradesh Warehousing and Logistics Policy, 2022, Government of Uttar Pradesh; published through Invest UP in September 2023.
  • Warehousing and Logistics Sector, Invest UP, Government of Uttar Pradesh.
  • Uttar Pradesh’s performance in Logistics Ease Across Different States 2025, Invest UP, Government of Uttar Pradesh; June 10, 2026.

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