Uttar Pradesh Micro, Small and Medium Enterprises Promotion Policy-2017
Sector Overview :
Uttar Pradesh, India's expansive state, stands as a significant economic powerhouse. This sector, crucial for regaining momentum and capturing new investment avenues post-pandemic, is central to realising Uttar Pradesh's vision of becoming a trillion-dollar economy.
MSME entrepreneurs and investors are thus invited to explore and leverage the myriad opportunities presented by this policy, contributing to mutual prosperity and growth.
Sector Overview
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MSMEs in Uttar Pradesh: A robust foundation of over 90 lakh registered and unregistered MSMEs, contributing to 45% of the state's exports and a significant Rs 890 billion in exports for FY17-18. This vast network spans diverse manufacturing sectors including engineering goods, carpets, leather products, apparel, plastics, and glassware.
One District One Product (ODOP) Scheme: An innovative move to bolster local artisans and craftsmen across the state, mapping 75 unique products to respective districts to fortify exports and preserve cultural heritage.
Objectives
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- Target to achieve an annual growth rate of 15% in development of MSME industries.
- Target to generate employment with annual growth rate of 15%.
- Expansion and technical upgradation of the existing MSME industries.
- Providing support to the new MSME for setting up the industries.
- Create a favourable business environment for the MSME.
Enablers
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- Capital Interest Subsidy, Infrastructure Interest Subsidy, Industrial Quality Development subsidy.
- Exemption : Land Use conversion for converting agricultural land to Industrial land of agriculture land development authorities, Stamp Duty, Electricity duty exemption to new units.
- EPF Reimbursement, Electricity Charges Reimbursement.
- SPV Formation : The Government will provide grant of equal proportion of contribution by the allotees.
Investment and Fiscal Incentives
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- Developing Gram Sabha land of 5 acres or more as an industrial area.
- Developing industrial areas on either side of the Expressways (up to 5 Kms on either side).
- 100% reimbursement of employer's EPF contribution for 5 years.
- Promoting industry 4.0 among MSMEs
- Micro, small and medium enterprises in the Bundelkhand region are eligible for capital subsidy of 25%, 20% and 15%, respectively.
- 50% interest subsidy, payable annually for five years, subject to ceiling of Rs 25 Lakh/ unit for Micro units.
- 100% stamp duty exemption in the Purvanchal and Budelkhand region, • fiscal assistance of up to 75% (maximum Rs 5 Lakh) to MSMEs, as reimbursement for attain quality standards like ZED, GMP, Hallmark etc.
- Financial assistance of 75% (maximum Rs.10 lakh) will be provided for attaining patents and GI tags.
