UP govt greenlights MSME industrial estate policy, will ‘boost investor confidence’
The policy aims to promote industries through easy land allocation, better facilities, and better management.
3 min read
Under the policy, the allocation of land, sheds, and plots available in industrial estates will be done on lease/rent through auction or e-auction modes.
(Archive)The Uttar Pradesh government has given a green signal to the ‘Micro, Small and Medium Enterprises (MSME) Industrial Estate Management Policy’, aiming to promote industries through easy land allocation, better facilities, and better management.
The government stated that UP happens to be India’s most populous state with the second-largest economy, and that the policy will help boost investor confidence with better infrastructure and transparent processes, targeting an industrial landscape that meets global standards.
The details
Under the policy, the allocation of land, sheds, and plots available in industrial estates will be done on lease/rent through auction or e-auction modes.
It also reserves 10% of all plots and sheds for SC/ST entrepreneurs. If no eligible applicant is found, the plots may be reallocated to other categories to keep development on track.
The lease/rent period will be determined by the Commissioner and Director of Industries, who will also have the authority to select the auction portal. Up to 20% of the area may be allocated for commercial, service, or residential use.
Considering the state’s geographical diversity, reserved prices have also been fixed for industrial plots for the financial year 2025-26.
For instance, in the Madhyanchal region, the reserved price will be Rs 2,500 per square metre. A hike of 20% has been allocated in the Pashchimanchal region at Rs 3,000 per square metre, and 20% lower in Bundelkhand and Purvanchal regions at Rs 2,000 per square metre.
The rates under the policy will increase annually by 5% on April 1.
As a special arrangement, if an anchor unit is likely to spur significant MSME growth in an industrial estate, the government may offer plots at preferential rates.
Successful bidders in an e-auction will have to pay 10% of the reserved price as earnest money. The remaining amount must be paid in a lump sum, within a year, or a maximum of three years.
Bidders who make immediate payments will also be eligible for a 2% discount. For those who opt for the installment plan, 12 or 36 equal monthly installments will be applicable, attracting additional interest as a penalty for any payment delay.
Industrial estates will be equipped with common facility centres, power sub-stations, fire stations, women’s hostels, dormitories, creches, eco-friendly parks, training institutes, and health services.
The Commissioner and Director of Industries have been tasked with implementing standard operating procedures (SOPs) for land allocation, property transfer, revitalisation, subletting, division, and surrender.
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