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State Sector Policy

UP Township Policy 2023 — Incentive Assistance

50% stamp duty exemption, 100% development fee rebate, and 100% FDI permitted for private township developers — we help you work through the licence and land-holding conditions.

The Uttar Pradesh Township Policy, 2023 replaces the state's earlier hi-tech township framework with a more flexible, licence-based system for private township development, aimed at planned urban expansion and affordable housing across income segments. Licensing is overseen by a committee headed by the Secretary of the relevant Development Authority or the Additional Housing Commissioner.

Key incentives

  • Stamp duty: 50% exemption on land purchased after the township licence is granted
  • Land use change fee: 50% rebate
  • Development fee: 100% rebate
  • Land conversion fee (smaller cities): 25% reduction in cities with 5–10 lakh population; 50% reduction in cities under 5 lakh population
  • Foreign investment: 100% FDI permitted in townships under the FDI policy

Who it's for

  • Private developers, companies, individual investors, and consortiums
  • Applicants who already own at least 25% of the proposed township area via a registered sale deed
  • Projects meeting the minimum area threshold — 12.5 acres in cities under 2 lakh population, 25 acres in cities over 2 lakh (no maximum)

Land use is restricted below 50 acres (residential only); at 50 acres and above, residential and agricultural mixed use is permitted.

How we help

The conditions that trip developers up here are less about the incentive rates and more about the licensing thresholds, which were tightened in this policy revision:

  • Confirming your site meets the minimum area and 25%-ownership condition for your city's population tier
  • Working through the licence fee (population-tiered, roughly ₹50,000–₹2 lakh/acre plus GST) and the raised net-worth/turnover requirement (about ₹75 lakh/acre)
  • Planning around the 10% land-mortgage requirement and the raised 75% land-holding/agreement threshold before the licence is granted
  • Preparing and filing your application with the relevant Development Authority

Message us your site size, location, and current ownership stake, and we'll tell you — free of charge — whether you meet the threshold and what the next step looks like.

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