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Uttar Pradesh industrialists, especially from the Micro, Small and Medium Enterprises (MSME) domain, have demanded the state government convert nearly 46,500 acres of leasehold industrial land to freehold parcels.
Industry captains asserted the conversion to freehold will unlock the potential of these land parcels and bolster the ‘Ease of Doing Manufacturing’ and ‘Make in UP’ programmes.
These land parcels are in 156 industrial areas across the state and are promoted by the UP State Industrial Development Authority (UPSIDA).
MSME chamber Indian Industries Association (IIA) national president Neeraj Singhal said unlocking of the leasehold industrial land would directly feed the state’s ambitious 1 trillion dollar economy target.
“The leasehold law was implemented during the British rule to promote industrial units in India. Therefore, there is a need to change this relic of our colonial past for speedier industrial development in UP,” he said, adding that a representation has already been given to UP Chief Minister Yogi Adityanath.
Singhal claimed several states like Haryana, West Bengal, Chhattisgarh, Karnataka, and Tamil Nadu have already implemented the policy of converting leasehold industrial land into freehold.
In 2016, the UP industrial development department promulgated a policy for the freeholding of land, but it applies to units spread over an area of a hectare or more, which effectively weeds out the micro and small industries from its purview.
UP will earn a revenue of almost Rs 50,000 crore from fees and other levies over the proposed conversion of leasehold land to freehold, Singhal said.
The UP government has been dithering on the issue, amid a plausible apprehension of industrial land turning into real estate or commercial properties if it were converted to freehold parcels.
However, UP Inc has assured that they were bound to adhere to the norms and conditions set by the government concerning the freeholding of industrial plots.
According to IIA, the conversion of leasehold to freehold will bring an array of benefits to UP, thus boosting the gross state domestic product (GSDP) and filling the coffers as more industrial units would be set up and the scarcity of industrial land would be resolved.
Singhal said when industrial land is given to an entrepreneur on leasehold, the land acquisition cost, development charges, and premiums are levied by the government.
“When all such costs have been paid by the entrepreneur, and the industry is run as per the government’s intention, then why should they not get ownership rights from tenancy?” Singhal asked.
IIA has taken various steps to highlight its demand. The issue is being discussed with major industrial organisations across the country.
First Published: Sep 26 2024 | 7:57 PM IS
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