Under the policy, stand-alone footwear, leather products, and machinery units will receive up to 35% land cost grant in Madhanchal, Purvanchal, and Bundelkhand regions.
With its new Footwear, Leather and Non-Leather Area Development Policy–2025, the Yogi government is turning the spotlight on Madhanchal, Purvanchal and Bundelkhand regions. By rolling out special land grants and capital subsidies, the Yogi government aims to spur industries in these areas, driving fresh growth in jobs, investment and industrial development.
Chief Minister Yogi Adityanath has a clear vision that industrial growth should not be confined to Western UP alone; instead, the Purvanchal Bundelkhand regions should also establish a distinct identity on the national and global industrial map. The new policy is a concrete step toward advancing this vision.
Under the policy, stand-alone footwear, leather products, and machinery units will receive up to 35% land cost grant in Madhanchal, Purvanchal, and Bundelkhand regions. In contrast, in Western UP, the grant has been fixed at 25%.
Similarly, mega anchor units and clusters in these regions will get up to 80% land cost grant, compared to 75% in Western UP. This benefit is especially important because the cost of setting up industries in these areas is considered relatively higher. The subsidy will only apply to land acquired from industrial authorities, state government institutions, or clusters formed under the policy. The subsidy amount will be calculated on the actual allotment value of the land, but stamp duty and registration fees will not be included. If a unit avails a land subsidy, then while calculating future capital subsidies, the cost of land will not be counted.
To provide greater benefits to companies making leather and footwear, the Uttar Pradesh government will offer an additional capital investment subsidy, in addition to the central government’s support. Under this, stand-alone units in Madhyanchal, Purvanchal and Bundelkhand regions will get 30% capital subsidy, up to a maximum of Rs 45 crore in five years.
For Western UP, this benefit will be 20% and up to Rs 30 crore in five years. Consequently, allied leather units across the state will receive a 25% capital subsidy, with higher priority given to these regions. Mega anchor units and clusters here will get 35% capital subsidy, up to Rs 700 crore over a period of five years. However, a unit cannot receive more than Rs 140 crore annually. For Western UP, this limit will be Rs 120 crore annually.
The Yogi government’s goal is to make these regions the new centres of investment and industries. Districts like Lucknow, Kanpur, Gorakhpur, Varanasi, Prayagraj, Jhansi, Chitrakoot, Azamgarh, and Banda will benefit directly. This policy will not only employ lakhs of youth but will also strengthen the state’s global identity as a leading exporter of footwear and leather products.