Millennium Post

‘UP will spare no effort to give land for private industry’

Uttar Pradesh State Industrial Coporation [UPSIDC] Managing Director [MD] Manoj Singh tells Siddheshwar Shukla that entrepreneurs keen to set up industrial units in the state have three options of land acquisition. They can enter into a direct purchase agreement with farmers, take ‘our land’ on equity basis as per its estimated cost, or purchase ‘our’ industrial plots to set up units. Excerpts:

What challenges are you facing?

We have noticed a transformation in structurel of UP’s industrial sector. Old industries like cotton and automobile are facing a shutdown while there is increasing demand for industries like food processing, leather processing and production, plastic manufacturing and production, plastic-based items manufacturing, power eqipment manufacturing, handicrafts, information technology [IT] and textiles based industeries.

Secondly, individual business houses are now not coming to make industrial cities. Rather, they are coming up in the form of associations. So there is a requirments for SEZs, Industrial cities and industrial pockets in the state.

What policy changes are you pushing for?

We have made changes needed to revive the state’s industrial sector and the government has approved them. Further, I want to stress that we are always open to amending our policy for the benefit of entreprenuers. We are committed to providing the best facilities of industrial development to entrepreneurs and utilising all government resources in their interest.

What are the policy provisions to attract entreprenuers and revive sick industries?

Getting land with appropriate connectivity is the most difficult task for the private sector. They are often restricted to establishing their units on land acquired by the government. But now we have allowed land acquisition by the private sector for industrial establishment.

In our new policy, we have three options for entrepreneurs willing to set up industrial units. Firstly, They can enter into a direct agreement with farmers to purchase land. We will then act as facilitators for change of land use, sanction of layout plan, power supply and other requirements.

Secondly, they can take our land on an equity basis as per the estimated cost of the land. Thirdly, they can purchase our industrial plots to set up their units.

Furthermore, we are allowing around 20 per cent residential and 10 per cent commercial use of the land allotted to them, where they can construct flats and commercial spaces to sell or lease out at market price for sustainability.

The UPSIDC board recently approved a proposal to allow small industrial units or associations to purchase 25-100 acres of land. However, medium and big industrial units or associations can purchase 100-700 acres of land directly from farmers.

... And what is in the kitty for sick industries?

We have a broad policy for them. A committee is being set up under the state’s industrial development commissioner [IDC] to survey and certify sick industries. Earlier, the Board of Industrial and Financial Reconstruction [BIFR] was doing this job nationwide. Now, the work will be faster due to the state-based committee.

In our new policy, sick industries with BFIR or UPIDC certificate will be allowed to develop up to 20 per cent of their land as residential flats and 10 percent as commercial area under industrial town planning norms. They will be allowed to sell them at market prices to revive themselves.

Thousands of industrial units in the NCR region have been shut down in the past two decades. How will they be revived?

Their products have either become outdated or they are not able to face competition in the market. They can apply for change of their product and enter new sectors. For example, a sick pharmaceutical company can enter in start making plastic or any other product.

The plastic industry is a new sector in the state. What is your plan to attract entrepreneurs?

We are setting up a Plastic Park on 24 acres of land at Auraiya district near Kanpur on the Kanpur-Agra national highway. An MoU has been signed with the All India Plastic Manufacturing Association to lure entrepreneurs. Plastic-based small public vehicles [SPV] will be manufactured here. UPSIDC is providing land on 20-30 per cent equity basis. NTPC has agreed to provide direct powery supply and arrangements for gas supplies too have been made. Its is well connected with highways and railways and situated in the upcoming East-West Corridor.

What are the new project for the leather industry?

We are setting up two clusters, one for big entrepreneurs and the other for small and medium entrepreneurs. A 200-acre plot is being acquired at Sandila, 40 km from Lucknow, to set up an ultra modern mega leather cluster. We are also setting up a leather cluster on 600 acres of land at Ramaipur, Kanpur Dehat district, for micro small and medium enterprises [MSMEs] at which MSMEs and their associations will be invited. The process of acquiring the land has been completed.

UP is considered a agriclutural state. What is in the kitty for food processing and allied sectors?

We are working on the food processing sector, which will make the agriculture and allied sectors profit-based and generate huge employment. Land of 150 acre has been acquired at Sultanpur district for the development of a mega food park. We have also managed a developer, Indo Gulf Group, for it. The project will generate employment in western UP and help in diversification of agro-industries. The Centre has sanctioned Rs 50 crore subsidies for the project.

What are the other major projects of UPSIDC?

We are also in the process of acquiring 2,600 acres of land near Budaki, which falls on the Delhi-Mumbai Industrial Corridor [DMIC]. Here we will develop a diversified world class state-of-the-art industrial area on 2,000 acres on a 50:50 sharing pattern between DMIC and the UP government. UPSIDC and Greater Noida Industrial Development Authority [GNDIA] would be partners in the state’s share. The land will be provided to entrepreneurs in the form of equity. Here manufacturing units of plastic-based special public vehicles [SPV] and other units will be established.

What is the area-wise distribution of industrial plots as per land use?

As per our norms, a minimum of 35-40 per cent of an industrial plot must be for industrial use. The rest 20-25 per cent should be green belt and road, 5-7 percent for setback and internal development. We are allowing 20 per cent for residential flats and 10 per cent for commercial use in confirmation with the norms of town planning of UPSIDC.
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