Uttar Pradesh MSME Industrial Estate Management Policy 2025
The Uttar Pradesh government has launched the Micro, Small and Medium Enterprises (MSME) Industrial Estate Management Policy in 2025. This policy aims to promote industrial growth by simplifying land allocation, improving facilities, and ensuring better estate management. It targets enhanced investor confidence and a modern industrial environment aligned with global standards.
Policy Objectives and Scope
The policy focuses on boosting MSME development in India’s most populous state with the second-largest economy. It prioritises transparency, infrastructure upgrades, and ease of doing business. Ten per cent of plots and sheds are reserved for Scheduled Caste and Scheduled Tribe entrepreneurs to encourage inclusive growth.
Land Allocation Process
Industrial land and sheds will be leased or rented via auction or e-auction. The Commissioner and Director of Industries oversee the process, including lease duration and auction platform selection. Up to 20 per cent of estate areas can be allocated for commercial, service, or residential use, allowing mixed-use development.
Pricing and Regional Variations
Reserved prices for industrial plots vary by region to reflect geographical and economic differences. Madhyanchal’s rate is Rs 2,500 per square metre. Pashchimanchal’s price is 20 per cent higher at Rs 3,000, while Bundelkhand and Purvanchal are 20 per cent lower at Rs 2,000. Prices will increase annually by 5 per cent from April 1, 2025.
Financial Terms and Incentives
Successful bidders must pay 10 per cent of the reserved price as earnest money. The balance can be paid in a lump sum or over one to three years. Immediate full payments receive a 2 per cent discount. Installment payments attract interest and penalties for delays, encouraging timely transactions.
Facilities and Infrastructure Development
The policy mandates common facilities in industrial estates such as power substations, fire stations, eco-friendly parks, women’s hostels, crèches, dormitories, training centres, and health services. These amenities aim to create a supportive environment for entrepreneurs and workers.
Management and Governance
The Commissioner and Director of Industries will implement standard operating procedures (SOPs) for land allocation, property transfer, revitalisation, subletting, division, and surrender. This ensures consistent and efficient estate management.
Special Provisions for Anchor Units
Anchor units that can stimulate MSME growth may receive preferential plot rates. This strategy aims to attract large investors who can catalyse industrial development and create employment.
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