Lucknow – The Indian Industries Association (IIA) has strongly advocated for the conversion of leasehold industrial land to freehold in Uttar Pradesh, aligning with practices in several other Indian states. Addressing the press on Wednesday, Chetan Dev Bhalla, National Vice President of IIA, highlighted the bureaucratic bottlenecks industrialists face due to the leasehold system and called for urgent reforms to spur industrial growth and boost the state’s Gross Domestic Product (GDP).
Bhalla explained that under the current framework, entrepreneurs who set up industries on leasehold land must seek repeated approvals from UPSIDA or the Directorate of Industries for routine operations, including introducing new products, modifying bank limits, transferring ownership within the family, leasing out property, or land amalgamation. These procedural hurdles, he said, not only delay growth but also expose industrialists to corrupt practices.
As part of the campaign, a memorandum addressed to the Chief Minister has been submitted to district magistrates across the state, urging the government to adopt a freehold policy, similar to those already implemented in Delhi, Haryana, West Bengal, Chhattisgarh, Karnataka, and Tamil Nadu.
IIA Secretary Vaibhav Agrawal and Ayodhya Divisional President Pramit Kumar Singh pointed out that the leasehold system is a colonial-era relic, originally rooted in mistrust of Indian citizens. With India now in its “Amrit Kaal”, they said, it’s time to dismantle such outdated laws and provide ownership rights to those who have already paid the full cost of the land, including development charges and premiums.
They emphasized that freehold conversion should be granted under the condition that the land use remains industrial, and only to those units that are already in production for a specified duration.
IIA, along with 20 other industry associations, argued that converting leasehold to freehold would offer multiple advantages:
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Reduced administrative red tape, saving time for entrepreneurs
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Increased industrial investments and new business opportunities
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Boost to the state’s GDP and revenue, supporting the $1 trillion economy vision
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Job creation, preventing outward migration in search of work
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Streamlined operations at UPSIDA and the Directorate, allowing them to focus on broader development
Moreover, the association contended that since industrialists pay the full cost of land upfront, ownership rights are both fair and logical. Making land freehold will not only strengthen investor confidence but also improve the state’s ranking in “Ease of Doing Business” and newly emerging “Ease of Doing Manufacturing” indices, eliminating what Bhalla called the “Tease of Doing Business” created by leasehold constraints.
The IIA’s plea has gained momentum and is now seen as a key industrial policy reform that could accelerate industrialization and economic growth in Uttar Pradesh.
