LUCKNOW, India — The Yogi government in Uttar Pradesh has approved a new “Micro, Small, and Medium Enterprises Industrial Estate Management Policy” designed to propel the state towards its ambitious $1 trillion economy target by 2027. The policy’s core objective is to accelerate industrial growth by offering transparent and accessible land allotment, modern facilities, and streamlined management.
Uttar Pradesh, already India’s most populous state and its second-largest economy, is now focused on creating a robust industrial environment that meets international standards. This new policy aims to provide investors with superior infrastructure and transparent processes to drive all-around industrial development.
Transparent Land Allotment through E-Auction
Under the new framework, the allocation of industrial land, sheds, and plots will be conducted transparently through a lease/rent auction or an e-auction. The duration of the lease and the selection of the auction portal will be determined by the Commissioner and Director of Industries. A significant provision allows for up to 20% of the area to be utilized for commercial, service, or residential purposes, fostering integrated development within the industrial estates.
Region-Specific Reserve Prices
To account for the state’s geographical diversity, the policy sets distinct reserve prices for industrial plots for the fiscal year 2025-26:
- Madhyanchal: Rs 2,500 per square meter
- Paschimanchal: Rs 3,000 per square meter (20% higher)
- Bundelkhand & Purvanchal: Rs 2,000 per square meter (20% lower)
These rates will be subject to a 5% annual increase beginning on April 1st of each year. The policy also includes special provisions for large-scale “anchor industries,” allowing for land allotment at special rates if their presence is expected to significantly boost the growth of MSME units.
Flexible Payment and Reservation
The policy offers flexible payment options to entrepreneurs. Successful bidders in an e-auction must pay 10% of the reserved price as earnest money. The remaining amount can be paid in a lump sum, within one year, or over a three-year period. A 2% discount will be offered for immediate lump-sum payments. Delayed payments will incur an additional penal interest.
In a move towards inclusivity, 10% of all plots and sheds will be reserved for entrepreneurs from the SC/ST category. If no eligible applicants from this category come forward, the plots may be offered to other entrepreneurs to ensure continuous development.
Enhanced Infrastructure and Services
The industrial estates will be developed with a focus on providing comprehensive facilities, including common service centers, power substations, fire stations, women’s hostels, dormitories, crèches, eco-friendly parks, training institutes, and health services.
With the detailed draft of the policy now released after the Yogi Cabinet’s approval, the state government is moving forward with a clear and structured approach to create a conducive environment for industries, aiming to build a stronger, more prosperous Uttar Pradesh.
