Lucknow, May 13 (KNN) In a series of steps to help boost morale of the micro, small and medium enterprises (MSME) sector, the Uttar Pradesh Government has now decided to accord industry status to warehousing and logistics units.

The step is likely to woo the potential investors to set up warehouses on industrial land as the move would bring about a drastic reduction (approximately one third) in the cost of setting up warehousing and logistic parks.

CM Yogi Adityanath has already given his nod to the proposal which would be put up before the state cabinet soon.

Last week, UP had suspended most of the labour laws to give more functional flexibility to the existing industrial units and lure more to invest in the state.

According to state Industry Minister Satish Mahana, this sector had immense potential to create jobs which was imperative in the wake of migrant labourers in lakhs thronging the state from different parts of the country during the COVID-19 pandemic.

The minister claimed that the move would make UP one of the most-favoured destinations for investment.

The Infrastructure and Industrial Development Commissioner Alok Tandon said, “At present, change of land use from agriculture to commercial is charged at 150% of the circle rate. This will now be only 35% of circle rate. Now industrial land-use charges will be applicable to warehousing and logistics sector units and parks in Uttar Pradesh."

The Principal Secretary claimed that henceforth, warehousing and logistics park activities would be considered for ‘industrial’ land use in all industrial development authorities of the state in consonance with the provision of the UP Warehousing and Logistics Policy-2018.

At present, land available to warehousing and logistics sector costs an average of Rs 40,000-60,000 per square metre but now it will be reduced to around Rs 15000-20,000 per square metre.

Orders have been issued to all industrial development authorities to adopt this provision by amending their master plans and building by-laws immediately, said the principal secretary.