Ever since its inception in the year 1972, the Pradeshiya Industrial & Investment Corporation of U.P. Limited or as it is popularly known PICUP has ushered the largest state of the country, the State of Uttar Pradesh from merely an Agrarian State to a tremendously attractive and preferred business destination.  Over 1600 companies have been supported in a short span of just twenty eight years.

Extending broad-based financial services of highest quality with a view to facilitate industrial investment in Uttar Pradesh has been the area of primary focus for PICUP.

Right from Project identification to Preparation of Feasibility Report from extending Term Loans to Equity Participation  PICUP has grown big indeed to be a vibrant industrial development organisation.


PICUP offers a vast spectrum of financial assistance and services for setting up new medium and large scale industries as well as modernisation, expansion and diversification of existing units through a comprehensive range of schemes detailed below :

Term Loan

PICUP is providing secured term loans at nationally competitive rates of interest in accordance with the following lines :

  • Debt-Equity ratio :  not more than 1.5:1
  • Quantum of Term Loan  :  Rs.4.00 crores subject to project cost ceiling of Rs.12 crores
  • Minimum promoter’s contribution  :  25%
For large projects PICUP can arrange loans in consortium with the Central Financial Institutions and Banks.   Since the completion of legal formalities relating to term loans could take some time   PICUP provides Bridge loans to expedite project implementation while these formalities are being completed.   Such bridge loans are generally to the extent of 50% of the sanctioned term loans.
Equipment Refinance Scheme

Under this scheme, PICUP extends loans to existing industrial units for the purpose of purchasing new capital goods/equipments.   Such loans cover 75% of equipment (the balance to be financed by the borrowers and are available only to those companies which :

  • Have been in operation for at least four years.
  • Have earned profits and/or declared dividends on equity shares during the preceding two years.
  • Are not in default to institutions/banks in payment of their dues.
  • Have positive networth and have also earned minimum average net profit of not less than 25 lakhs for last two years.
  • Have current ratio of atleast 1.33 (as per the last available audited balance sheet).
  • Loans under this scheme can be sanctioned upto a maximum limit of Rs.150 lakhs per proposal subject to a ceiling of Rs.200 lakhs per concern.   New projects are not eligible for loan under this scheme. 
Bill Discounting scheme

The Corporation shall undertake the discounting of trade bills with or without letter of commitment, which may consist of either purchase bill or a sale bill for genuine trade transaction related to the company’s business with excellent track record in the portfolio of PICUP, subject to following conditions :

  • The company shall have been in operation for atleast three years and should have been in profit minimum of Rs.100.00 lakhs in each year for preceding two financial years and should preferably have declared dividend in last two years.
  • The turnover of the company should not be less than above Rs.10.00 crores.
  • The net worth of the company should be atleast Rs.5.00 crores.
  • The company should not be in default to any financial institutions/banks/NBFCs as on date of applying to PICUP and have no default track record of 30 days in last 2 financial years.
  • Existing total short term borrowings (including bank borrowing as also Bill discounting assistance, short term loans and unsecured loans from promoters) should not exceed 30% of the turnover of the company as per the latest audited half yearly/annual results.
  • The maximum and minimum limit is between Rs.250.00 lakhs and Rs.50.00 lakhs with adequate security for those companies whose track record under the scheme is found excellent during the period of one year.
  • The value of each bill should not exceed Rs.50.00 lakhs.
Refinance Scheme for Textile Industry under Technology Upgradation Fund Scheme

To provide encouragement to Textile Industry (non-SSI sector) for taking up Technology Upgradation and to modernise their product facilities the Scheme envisages interest incentive of 5% on the interest rate actually charged on the sanctioned term loans extended for technology upgradation and modernisation. 

Following categories of units would be eligible for assistance under the scheme :-

  • Existing units with or without expansion and new units.
  • Existing units can modernise and/or expand with the state of the art technology.
  • Establishment of new units with upgraded technology.
  • Units with multiple activities i.e. by way of forward or backward integration.
  • The Project cost under the scheme should not exceed Rs.1,200/- lakhs.
Total repayment period of RTUFS should not be more than 10 years including gestation period of two years. The scheme would remain in force upto March 31, 2004

Venture Capital Scheme for IT Projects

To encourage small/medium scale units utilising innovative technology Venture Capital Assistance to be provided to the extent of Rs.15.00 lakhs to single promoter and Rs.25.00 lakhs, if there are more than one promoter (not to exceed 50% of promoters’ contribution).

Film Financing from Film Development Fund

Government of U.P. has formulated a “Film Policy - 1999”, which is aimed to develop U.P. as the most preferred destination for film production, due to the rich and exotic natural beauty, history and culture and tourist potential of the State.

In order to develop this economic activity Government of U.P. has evolved a strategy which includes extending support for creation/upgradation of infrastructure, filling up of critical gaps, adequate administrative support, attractive package of financial incentives, innovative method of financial support  and impetus to NGOs involved in propagation and appreciation of cinema. Govt. of U.P. has appointed PICUP to play an active role in promotion of this industry in the state, which involves the following specific responsibilities.

  a) Facilitatory role in Development of Infrastructure for Film Industry.
  b) To act as Fund Manager for Film Development Fund.

In order to finance various schemes for development of films and film related infrastructrue Government of U.P. has constituted a Film Development Fund which will be placed in PICUP and shall be managed by a Committee of Senior Govt. officials for financing of Films, TV Serials, Cinema Houses, Multiplexes, Studios, Processing Labs, Film Distribution etc.

Interest Rate Structure 

The Interest rates on the present schemes of the Corporation are as under :

Term Loan/ERS : 16% per annum
Bill Discounting Scheme
(Discount rate-range)
: 17% - 19% per annum

The above interest rates shall  be exclusive of the applicable intererst tax, if any. 

Information Technology Sector

PICUP has taken a major step in formulating a financing scheme tailored to promote Information Technology Sector in the State of Uttar Pradesh. It broadly outlines the following features :

  • The entire Information Technology project would be evaluated as a whole, the project may be implemented in a modular form
  • Promoters’ contribution of 25% of cost of project and debt equity ratio upto 3:1 for SSI sector & 33% of cost of project and debt equity ratio upto 2:1 for medium and large scale sector.
  • Total repayment period of Term Loan not more than 5 years including gestation period.
  • Wherever repayments are forthcoming from the company in an accelerated manner, no premium would be charged for such premature payments. 
Infrastructure Projects

PICUP which was hitherto extending financial assistance to medium and large scale industrial projects only in the State of U.P. has been authorised by IDBI to finance infrastructure projects with a cap of Rs.5.00 crores for individual projects costing upto Rs.20.00 crores. Accordingly PICUP has decided to foray into infrastructure financing.