UP Govt Notifies MSME Industrial Estate Policy 2025, Introduces E-Auction For Plot Allotment

Lucknow, Aug 12 (KNN) The Uttar Pradesh government on Monday formally notified the MSME Industrial Estate Management Policy, 2025, through an order issued by Additional Chief Secretary (MSME) Alok Kumar. 

With this notification, 19 previous orders related to the matter have been revoked. The policy received state cabinet approval last week.

Industrial estates in Uttar Pradesh were originally established in the 1960s, but lacked a formal management framework. 

Since 1978, their administration was handled through a series of state government orders, which officials have acknowledged were inadequate. 

Over time, the estates became financially and operationally burdensome, prompting the drafting of a comprehensive policy aimed at streamlining their management and transforming them into revenue-generating assets.

Under the new framework, industrial plots and sheds will be allotted through e-auctions on a lease or rental basis. Applicants will be required to deposit 10 percent of the plot cost as earnest money. 

Entrepreneurs must pay the full cost of plots within three years of allocation, failing which the allotment may be cancelled.

The policy prescribes differential reserve prices for 2025–26: Rs 3,000 per sq. metre in the western region, Rs 2,500 per sq. metre in the central region, and Rs 2,000 per sq. metre in the eastern and Bundelkhand regions. 

Rates will be revised upward by 5 percent annually. A 2 percent discount will be offered for immediate full payment.

The government will retain the authority to designate anchor units, while 10 percent of the total plots in each region will be reserved for individuals or firms from the Scheduled Caste and Scheduled Tribe categories. 

The order also outlines conditions under which plot allocations may be cancelled.

(KNN Bureau)