(MENAFN- KNN India)
Lucknow, Sep 27 (KNN) Industrialists in Uttar Pradesh, particularly those from the Micro, Small, and Medium Enterprises (MSME) sector, are urging the state government to convert nearly 46,500 acres of leasehold industrial land into freehold.
These parcels, spread across 156 industrial areas and promoted by the Uttar Pradesh State Industrial Development Authority (UPSIDA), are considered crucial for bolstering the state's industrial landscape.
Business leaders argue that converting these leasehold lands into freehold will unlock their full potential, contributing to initiatives like 'Ease of Doing Manufacturing' and 'Make in UP.'
Neeraj Singhal, national president of the Indian Industries Association (IIA), emphasised that this move could significantly propel Uttar Pradesh's ambitious goal of achieving a USD 1 trillion economy.
"The leasehold law dates back to the British colonial era and was introduced to promote industrial growth in India," said Singhal. "It is time we shed this outdated law for faster industrial development in UP." A formal request has already been submitted to Chief Minister Yogi Adityanath to expedite the process.
Singhal also pointed out that other states, such as Haryana, West Bengal, Chhattisgarh, Karnataka, and Tamil Nadu, have already adopted freehold policies, facilitating faster industrial growth.
Uttar Pradesh did introduce a policy for converting industrial land to freehold in 2016, but it only applied to units larger than a hectare, leaving micro and small industries ineligible.
Converting leasehold land to freehold could generate significant revenue for the state-estimated at nearly Rs 50,000 crore-through fees and levies.
While the state government has hesitated, fearing industrial plots could be used for real estate or commercial purposes if converted, industry leaders have assured compliance with the regulations governing freehold land.
IIA argues that the conversion will help resolve the scarcity of industrial land, boosting the state's Gross State Domestic Product (GSDP) by encouraging more industrial units to set up shop.
Additionally, Singhal questioned the rationale for denying entrepreneurs full ownership when they have already paid all requisite fees and levies.
The IIA is actively discussing this issue with key industrial organizations nationwide, seeking a resolution that benefits both the state and the industries within it.
(KNN Bureau)
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