UP Government Notifies New MSME Industrial Estate Management Policy
The UP government has notified the MSME industrial estate management policy, 2025, to streamline the management of industrial estates and convert them into revenue-generating assets. This new policy will allocate industrial plots and sheds via e-auction on lease or rent, with specific provisions for earnest money, payment timelines, and reserved prices.
MsmeIndustrial EstatePolicyEauctionUttar PradeshReal Estate NewsAug 11, 2025
As per the policy, industrial plots and sheds will now be allocated via e-auction on lease or rent. Parties applying for the e-auction will need to submit 10% of the cost of the land as earnest money. Entrepreneurs are required to pay the full amount for the plots allocated in industrial areas within a three-year timeframe. Failure to do so may result in the cancellation of plot allocation. The highest rates for plot allocation will be in the western region, while the lowest rates will be in the eastern-Bundelkhand region.
For the financial year 2025-26, the reserve price for plot allocation is set at Rs 2,500 per square meter in the central region, Rs 3,000 per square meter in the western region, and Rs 2,000 per square meter in the eastern-Bundelkhand region. The price will increase by 5% annually. Entrepreneurs who opt for immediate payment will receive a 2% discount. The authority to declare an anchor unit will rest with the government.
The policy also includes provisions for the allocation of 10% of the total number of plots to individuals or firms in the SC-ST category in each region. The order clearly defines the basis for plot allocation cancellation, ensuring transparency and fairness in the process.
This new policy is expected to not only improve the management of industrial estates but also attract more investments, thereby fostering the growth of MSMEs in the state. The government's initiative is a step towards creating a more conducive environment for industrial development and economic growth in Uttar Pradesh.
The MSME sector plays a crucial role in the economic development of Uttar Pradesh, contributing significantly to employment generation and industrial output. By implementing this policy, the government aims to provide a structured and efficient framework for the management of industrial estates, which will benefit both the state and the entrepreneurs involved.
The new policy is a testament to the government's commitment to supporting the MSME sector and promoting industrial growth. It is designed to address the long-standing issues in the management of industrial estates and to ensure that they become valuable assets for the state's economy. The e-auction process and the defined payment terms will bring in much-needed transparency and accountability, making it easier for entrepreneurs to secure plots and start their operations.
Overall, the MSME industrial estate management policy, 2025, is a significant step towards modernizing the industrial landscape of Uttar Pradesh and ensuring sustainable economic growth.
Frequently Asked Questions
What is the purpose of the new MSME industrial estate management policy?
The purpose of the new policy is to streamline the management of industrial estates and convert them into revenue-generating assets. It aims to address the long-standing issues in the management of these estates and provide a structured framework for their operation.
How will industrial plots and sheds be allocated under the new policy?
Industrial plots and sheds will be allocated via e-auction on lease or rent. Applicants will need to submit 10% of the cost of the land as earnest money, and the full payment must be made within three years to avoid cancellation of the plot allocation.
What are the reserve prices for plot allocation in different regions of Uttar Pradesh?
For the financial year 2025-26, the reserve prices are set at Rs 2,500 per square meter in the central region, Rs 3,000 per square meter in the western region, and Rs 2,000 per square meter in the eastern-Bundelkhand region.
What discount is available for immediate payment?
Entrepreneurs who opt for immediate payment will receive a 2% discount on the plot allocation price.
What is the provision for SC-ST category in the new policy?
The policy includes a provision for allocating 10% of the total number of plots to individuals or firms in the SC-ST category in each region.
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