Empowering MSMEs with News & Insights

Freehold land, focus beyond real estate, end power woes are immediate demands of UP MSMEs from Yogi Govt

Updated: Mar 22, 2017 09:53:03am
image

Freehold land, focus beyond real estate, end power woes are immediate demands of UP MSMEs from Yogi Govt

Lucknow, Mar 22 (KNN) The MSME associations of Uttar Pradesh want Chief Minister Yogi Adityanath to fulfil the long pending demands of the industrial sector, one of the main being making industrial lands freehold.

UP which has a huge MSME base of around 3 million units and the sector is the largest employment generator in the state. The MSME sector has pinned huge hopes on the new government demanding immediate focus on controlling red tapism, better electricity supply, improving financial health of power utilities, improving infrastructure, improving law and order etc.

KNN spoke to MSME associations in the state, who said there are numerous challenges before Yogi Government which needs immediate attention.

Vipin Malhan, President, Noida Entrepreneurs Association (NEA) said, “In the last 15-16 years, three governments came but there only focus was towards the builder industry.”

However, Malhan pointed that the constitution of Noida, which is New Okhla Industrial Development Authority, clearly mentions that 60-70 per cent land in Noida should be under the industry and remaining can be used as supportive land for the industry like for building hospitals, markets, schools, colleges etc.”

“But in the last 15 years, only builder industry has come to the city. No big industry has come which could feed the MSMEs in the region. Big industries should be set up in Noida so that 8000-9000 small industries get some feeding. When big industries are set up, small businesses get business from them,” Malhan explained.

Further, NEA President said Noida Authority should be made freehold. They give the land on lease for 90 years and there is lot of corruption in the system. If there is a need of fund, the entrepreneur mortgages the industrial land to the ban. But one has to take permission for each and every thing from Noida Authority. For this industries have to pay lot of bribes too.”

Talking about the power situation in Noida, Malhan said Noida, which is supposed to be a 24 hour no power cut zone, is a “no power” zone.

Budget for infrastructure alone in Noida is approximately Rs 10000 crore and 60 per cent of it goes into corruption. If the entire amount is used in a right way, the city will be in a completely different league, said the entrepreneur.

Woes are no different in Lucknow as well. Manish Goel, President, Indian Industries Association said, “The industrial lands should be made freehold. Currently they give it on a lease for 90 years and there is lot of corruption in the entire system due to this. Even if one plans expansion, modification, funding, change of name etc everything is very complicated under this. It should be simplified by making lands freehold.”

Further, Goel highlighted that the procurement procedure should be made more transparent.

“Currently the tenders are prepared in such a way that MSMEs are kept out of it. Also, 20% procurement from the MSME sector should be made mandatory and there should be a system to keep a track of it,” IIA demanded.

Udyog Bandhu, which is one of the most defunct body in UP, should be made active and the meetings should be chaired by CM himself sometimes.

Usually the meetings are chaired by bureaucrats but sometimes the chief minister himself to chair the meeting, IIA said.

Goel said there is no grievance redressal mechanism in the state for industries presently. There should an active and effective mechanism in which one can put up their issues and get their demands addressed effectively.

Power is another area which has a lot of problem in the state; Goel pointed adding that power supply, getting new connections - everything is very complicated here. The power tariff should also be checked in order to make industries competitive, Goel said.

IIA has also prepared the charter of demands by the MSME sector which it would submit to the Yogi Government.

With industries pinning high hopes in the new Government, it is for the time to tell whether the new government shifts focus towards industry and infrastructure beyond highways in the state. (KNN Bureau)

COMMENTS

    Be first to give your comments.

LEAVE A REPLY

Required fields are marked *