UP cabinet meeting: Two policies cleared to boost MSMEs, leather industry
The UP footwear, leather and non-leather development policy aims at giving a boost to the state's share in the export of leather and non-leather products and attracting investment. The UP MSME Audyogik Aasthan Prabandhan (allotment) Policy has been worked out for allotment of land to the MSMEs at low rates.
Chief minister Yogi Adityanath presided over the meeting of the state cabinet that gave the nod to the two policies. Minister for finance and parliamentary affairs Suresh Khanna and minister for MSMEs Rakesh Sachan briefed media persons about the state cabinet's decisions.
The footwear, leather and non-leather policy also aims at technology upgradation and modernisation, launching training programmes to improve quality of products, create a workforce for the industry and provide jobs, the ministers said.
Uttar Pradesh and Tamil Nadu are the leaders in the sector. The state government had recently sent teams to China and Japan to attract investment in the sector. It is developing megaleather parks in Kanpur, Agra and Unnao.
'We hope to get investment from China and Japan etc. and nearly 44 lakh jobs are likely to be created in the sector in the next five years. We aim at creating 50% of these jobs, including for women, in Uttar Pradesh,' said additional chief secretary, industry, Alok Kumar.
Under the UP MSME Audyogik Aasthan Prabandhan (allotment) Policy, the state government will develop land/sheds for the MSME sector. The MSME department had no clear policy for allotment of land/sheds for MSMEs.
Parks for the MSMEs are being developed in a nearly 700-acre area. Allotment of land for the MSME would now be done through a bidding process on the GeM portal. A reserve price of ₹2500 per square metre has been decided for the MSMEs in central UP, ₹3000 per square metre in west UP and ₹2000 per square metre in east UP and Bundelkhand regions.
There will be revision of rates with a 5% increase on April 1 every year. Those taking part in the e-auction for allotment of land would have to deposit 10% earnest money. There will be 10% reservation for SC/ST in allotments.
'The state government will be giving a sort of subsidy by developing these areas and providing power . A park has been already developed in Aligarh in a 97- acre area and the state government proposes to develop such parks in all the districts,' said Kumar.
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