The Industrial Entrepreneurs Association (IEA) has urged the Uttar Pradesh government to revise its policy on the allotment of industrial plots, as published by The Economic Times.
Specifically, the association has called for plots up to 2,000 square meters to be allotted through a draw of lots rather than the current e-auction system.
The IEA claims that the e-auction process, which is required for plots up to 8,000 square meters, is making it increasingly difficult for small and medium-sized enterprises (MSMEs) to acquire land. The association argues that large investors and property dealers often dominate these auctions, pushing up land prices and leaving MSMEs with fewer opportunities to expand their businesses.
In a letter addressed to Uttar Pradesh Chief Secretary Manoj Kumar Singh, the IEA expressed concern that the new allotment policy could harm the growth of MSMEs in the state. The association warned that small industrialists might be forced to look for land in other states, leading to a potential slowdown in industrial development in Uttar Pradesh.
According to the IEA, the e-auction system has contributed to inflated land prices, making it unaffordable for MSMEs. The association also raised concerns that investors may purchase the land at auction only to rent it to MSMEs, rather than using it for industrial development.
“If this policy is implemented, it seems the authorities have become businessmen, with little regard for the support needed for industries to grow,” said Manoj Singhal, president of the IEA.
The association is also calling for priority to be given to MSMEs that have been renting land for over five years. Additionally, the IEA suggested streamlining the process for obtaining necessary clearances through the Nivesh Mitra portal to ease the burden on industrialists.
In their appeal, the IEA highlighted the importance of supporting MSMEs, which play a key role in driving economic growth and innovation. The association believes that revising the allotment policy will provide a fairer opportunity for small industrialists to secure land and contribute to the state’s industrial ecosystem.