CM Yogi gave instructions to prepare land bank expansion, plug and play model and revenue sharing based lease rental policy to accelerate industrial development in UP. This will help MSME units to start production immediately without the hassle of purchasing land.
Chief Minister Yogi Adityanath stressed the need to expand the land bank to accelerate industrial development in the state and implement plug and play model to provide quick facilities to MSME units. In the review meeting held on Saturday, he said that revenue sharing based lease rental model should be adopted to provide adequate land for industrial projects. The Chief Minister described it as “very useful” for the industrial progress of Uttar Pradesh and directed to make a detailed policy on this basis.
CM’s focus on land bank expansion
It was informed during the meeting that the prices of industrial land in the state are relatively high, especially in the districts belonging to NCR. The Chief Minister said that the cost of land becomes a major obstacle in the expansion of industries, technological upgradation and establishment of new units. Therefore, it is necessary to provide small plots and ready industrial sheds at affordable rates to MSMEs.
Why is ‘plug and play’ model necessary for MSMEs?
- Chief Minister Yogi said that the purpose of plug and play model is to free industries from buying land, getting construction done and spending time and money in complex processes.
- With this model, entrepreneurs will be able to focus directly on production, machinery installation and employment generation.
How will the plug and play model be implemented?
- The Chief Minister said that the Industrial Development Authority will develop ready industrial sheds on its land.
- These sheds will be given on rent to industries.
- The construction work can be done by the authority itself or can be done by the private sector on PPP model.
- Industries will get immediately usable premises, making it easier to start business.
- Use of PPP mode and DBFOT structure
- The CM suggested that the Plug and Play project could be implemented on DBFOT (Design, Build, Finance, Operate, Transfer) basis.
- Private sector in:
- Design
- Construction
- finance
- Operation
While the ownership and regulatory control of the land remains with the authority.
Benefits of Revenue Sharing Based Lease Rental Policy
- The Chief Minister said that this model will be beneficial for the state in the long run.
- The authority will be able to get permanent income.
- Entrepreneurs will get an opportunity to expand their industry in a phased manner without purchasing land.
- Financial risk of MSMEs will be reduced and flexibility in running business will increase.
There will be better utilization of the land wealth of the state
- The Chief Minister directed that the new policy should provide long-term stability and clarity to the industry, while control of the land should remain with the government.
- Revenue sharing rules should be simple, transparent and in the interest of the industry so that maximum utilization of the land wealth of the state can be done.