Yogi govt pitches for 360-degree approach in new UP industrial policy

UP CM discussed the new draft policy during a review meeting in Lucknow Wednesday

Uttar Pradesh Chief Minister Yogi Adityanath wants the state group of ministers (GoM), tasked with drafting the new industrial policy, to take a 360-degree approach for maximising results.

Chairing a review meeting of the GoM in Lucknow on Wednesday night, Adityanath issued directives that dwell upon the direct and indirect aspects of industrial development and investment.

During the meeting, the CM broached a series of issues including the single window clearance system, industrial land bank policy, power generation, growth of micro small and medium Enterprises (MSME), improved connectivity and increased investment, among others. He also raised the issue of corruption and increasing jobs, besides pitching for building entrepreneurship opportunities in the state. 

Adityanath hopes to spur industrial growth by focusing on these subjects.

GoM presented the draft policy before the Uttar Pradesh CM, who has been keeping a track of the status industrial development in the state. The new policy is crucial in fulfilling several key pre-poll promises of the ruling Bharatiya Janata Party (BJP), including that of creating jobs and increasing tax revenue.

Adityanath said the new policy should emphasise on identifying land for industries, as well as expanding the land bank for prospective units. Scarcity in land bank has always been flagged as a major impediment to growth. Industrialists noted that while the state industrial development corporation (UPSIDC) lacks adequate land bank, purchasing private land was costly and unviable for entrepreneurs.

Recognising a large market in the densely populated state of Uttar Pradesh, he said the policy should nurture a conducive business environment for faster economic growth and trade development. Establishment of food parls, IT parks and textile parks, among others would create more job opportunities and spur growth, he said. 

Recommendations of stakeholders including industrialists and industry chambers need to be incorporated in the propsed policy, added Adityanath.

Among other focus areas underlined during the Wednesday meeting were the state's logistics and surface/air connectivity, which need a boost for faster movement of goods.

Incorporation of an exit policy for sick industries is also likely to be a part of the draft prposal. MSMEs have been demanding an exit policy to allow promoters of such units to start new ventures or dispose their distressed assets.

In its maiden cabinet meeting on April 5, the Yogi regime had constituted the GoM to draft a new industrial policy for Uttar Pradesh. Headed by Deputy Chief Minister Dinesh Sharma, the GoM comprises other state ministers including Rajesh Agarwal, Satish Mahana, Gopal Das Nandi and Srikant Sharma.

The Akhilesh Yadav-led cabinet had in September, 2012 proposed a new industrial and infrastructure policy for the state as well. Proposed measures also emphasised on energising the MSME sector in Uttar Pradesh.