Lucknow, Mar 14 (KNN) In a significant move aimed at aiding Micro, Small and Medium Enterprises (MSMEs) unit operators, the state government of Uttar Pradesh has announced the rollback of conversion charges imposed for industrial activities on agricultural land.

Responding to appeals from industrial bodies, the MSME department affirmed the continuity of provisions outlined in the 2017-18 policy.

With over 90 lakh MSMEs operating in the state, this decision is poised to benefit numerous unit operators who have sought permission from the 29 housing development authorities for land use conversion.

On average, one-third of the land's value is typically paid as conversion charges to the housing department.

The exemption extends to private industrial parks established under the Promoting Leadership and Enterprise for Development of Growth Engines (PLEDGE) scheme by private players and industrialists on a build, own, and operate model.

Notably, the provision for exemption from conversion charges was absent in the MSME promotion policy of 2022. However, following cabinet approval, an amendment was incorporated into the updated policy in January this year.

Consequently, all development authorities have been instructed to grant exemption retroactively to PLEDGE parks established from February 1, 2023, onwards in the state.

(KNN Bureau)