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Signalling a major reprieve to the beleaguered Micro, Small and Medium Enterprises (MSME) in Uttar Pradesh, the Adityanath Yogi government is giving shape to a progressive exit policy for industry.
The exit policy for sick and defunct industrial units has long been pending with the state government over successive regimes, yet it could never see the light of day.
MSMEs have all along been demanding an exit policy to allow the promoters of such units start new ventures or dispose of distressed assets.
In its maiden cabinet meeting on April 5, the Yogi dispensation had constituted a Group of Ministers (GoM) to draft the New UP Industrial Policy. The GoM is chaired by deputy chief minister (CM) Dinesh Sharma and comprises senior ministers Rajesh Agarwal, Satish Mahana, Gopal Das Nandi and Srikant Sharma as members.
The GoM has been mandated to visit progressive industrial states such as Gujarat, Maharashtra and Madhya Pradesh to study their relevant policies and prepare a similar document for UP to spur industrialisation and investment.
The MSME sector is the backbone of the UP industrial base and contributes about 60 percent to its annual industrial output. It directly employs roughly 40 million workforce and generates direct economic activity worth Rs 1,20,000 crore annually.
The state is home to over 5 million MSMEs and the sector is the second largest employment generator after agriculture.
To cut 'inspector raj' with regards to industry, especially relating to the labour department, the Yogi government is studying the Maharashtra state policy, which entails self certification by concerned industrial units.
Besides, the government is mulling setting up of private industrial estates and parks spanning 20-100 acres all over the state to boost industrialisation and startups.
Meanwhile, UP MSME and export promotion minister Satyadev Pachauri chaired a meeting with industrialists affiliated to Indian Industries Association (IIA) to take their feedback for submission to the GoM. The new policy would contain provisions for the state MSME sector as well.
Another long pending grouse of the MSME sector relating to the single window system is also being addressed in the proposed new industrial policy.
The GoM is studying the single window clearance system being followed in Telangana and Gujarat to evolve a similar system for the state to usher in both transparency and speed in the clearance process.
The MSMEs have even demanded that the single window system be implemented through legislation to give it a statutory status.
Pachauri said the government was following a multi-pronged approach to address the concerns of industry. He said the government would provide all possible incentives to industry and it was also taking steps to improve connectivity to spur industrialisation.