UP MSMEs waiting for the re-hold and pre-hold policies of lands: IIA

Lucknow, Feb 8 (KNN) The Indian Industries Association (IIA) has raised the issue of re-hold and pre-hold policies of lands in the state with the state government.

Freehold property can be defined as any estate which is "free from hold" of any entity besides the owner. Hence, the owner of such an estate enjoys free ownership for perpetuity and can use the land for any purposes however in accordance with the local regulations. Sale of a freehold property does not require consent from the state and hence requires less paperwork, thus, making it more expensive than leasehold property. 

News has been doing rounds in the media that the UP government is mulling policy to convert industrial plots under leasehold to freehold for units running for at least 30 years. This has been a long pending demand of the micro, small and medium enterprises (MSMEs) in UP. The leased plot holders could thus become the owners of the plots after paying the applicable charges.

“We have raised the matter of re-hold and free hold policy of land in the state. Discussion in this regard is going on with the state Government,” IIA Executive Director, DS Verma, told KNN.

Talking about other issue concerning the sector, he said that, “Comprehensive Procurement Manual is still pending before the Government. If it is approved, many issues of state Micro, Small and Medium Enterprises will be resolved,”Verma said adding that discussions are in the final phase.

IIA hailed the pro-industry steps taken by the Uttar Pradesh Government.

Verma said that, “Government is working with the industries now and is quite pro-active.”

“Centralised rate contract which was scrapped by the previous government has been reintroduce by the current government and it a big relief for us,” he said.

The Government also reintroduced the purchase and preference contract for which IIA was waiting for four years, he added. (KNN Bureau)