Single window system planned to get approvals under UP MSME Act
Easing the conditions for setting up new micro, small and medium enterprise (MSME) units in Uttar Pradesh, the state government notified the much-awaited new UP MSME (Establishment and Operations) Act, 2020.
Earlier, entrepreneurs required 80 no objection certificates (NOCs) from 29 departments, and had to apply to each separately. Now, a single window system will be set up for the purpose, and power connection of up to 20 KW will be made available within three days of filing an application.
Notified on Sunday, it was made public on Thursday.
“A person will have to make an application through a ‘Declaration of Intent’ to the District Level Nodal Agency (DLNA), which will have to issue an acknowledgment within 72 hours of receiving the application. On the basis of this acknowledgement, one will be able to establish the unit,’’ the notification stated.
If the authority finds that the entrepreneur falsified documents or is ineligible for the NOC, then the licence can be cancelled and penalties imposed. However, government physical inspection can happen only after 1,000 days from acknowledgment, the notification adds.
Navneet Sehgal, state’s additional chief secretary (MSME), said the DLNA will be headed by the district magistrate. “The application can be filed online through the ‘Nivesh Mitra’ portal, which is the official portal for the sector. The committee will immediately start verification of the submitted documents and licenses needed to start the industry will be issued within three days,” he said.
“Earlier, we were working on the basis of the central MSME Act, which had very tough terms and conditions regarding land use and ceiling. Since officials from all departments concerned have been made the members of the DLNA, the idea of the Act is to allow projects to proceed. Not only that, once a business obtains all the permissions, there won’t be any inspection for 1,000 days,” Sehgal said.
GB Nagar district deputy commissioner (industries) Anil Kumar said at least 10,000 new MSME entrepreneurs will now be able to kick off their ventures in the district. “Besides, it will also create new employment opportunities in the district. The Act will be applicable for new units or those seeking to expand or diversify, provided they increase their gross block only by 25%. This Act doesn’t cover units of tobacco products, gutka, pan masala, alcohol, carbonated drinks, fire crackers, plastic bags of 40 microns or less or as banned by the government from time to time,” he said.
Welcoming the new Act, Lalit Thukral, the president of Noida Apparel Export Cluster (NEAC), said that it will boost the morale of aspiring entrepreneurs and weed out corruption. “Earlier, they have to make rounds of different offices. Now, they don’t either need to waste their time in getting NOCs or to grease the palms of babus in different departments. This single window system will attract many new entrepreneurs in apparel sector in GB Nagar, which is a landmark product in the district. The more apparel units will be established in GB Nagar, the more job and export opportunities will be created here,” he said.
However, Surendra Singh Nahta, district president of MSME industrial association, said that the advantages of the new Act can only be assessed once the first entrepreneur gets license under the new provision. “The existing MSME units don’t have proper production due to paucity of workers. And, the government is not ready to provide them relief from any front. If the government can’t protect old units, how can it boost the morale of new entrepreneurs?,” he said.