To facilitate the setting up of extra businesses in Uttar Pradesh, especially within the post-Corona instances, the state’s cabinet has accepted a draft bill that lets in MSMEs to start operations within 72 hours after filing their utility, without having to look ahead to no-objection certificates (NOCs) from numerous departments.
The Micro Small and Medium enterprises (Infrastructure and Operation) bill 2020, which might be tabled in the monsoon session of the state legislature for approval, proposes to exempt MSMEs from numerous approvals and inspections which might be required for their establishment and operations in the initial years.
At present, one needs to get clearances from 29 distinct departments before being allowed to set up an MSME unit in the state. Interestingly, until now UP did not have its own MSME Act and became working based on the Central Act.
Speaking to FE, additional chief secretary, MSME, Navneet Sehgal stated henceforth everyone willing to set up a new MSME unit can put up an application on a prescribed format and could be approved within 72 hours. This acknowledgment certificate will stay valid for 1,000 days from the date on which it’s miles issued. Based on this acknowledgment, one can set up their unit so that the investor will then have 1000 days to get the vital clearances after the primary move-in advance.
The new law would assist setting up of more MSMEs in the state, which in flip could help create employment opportunities in which it targets to create about 15 lakh jobs in the next one year, But, MSME units producing products like tobacco, gutka, pan masala, alcohol, carbonated drinks, firecrackers, plastic bags of 40 microns or less and other items that are banned by the government or marked by UP pollution control Board in the red category will no longer be covered by the act.
Meanwhile, in another associated development, MSMEs in UP will get a marketing help of up to Rs 5 lakh under the new start-up policy.
The government has notified the new start-Up policy 2020, which is aimed toward extending guide and encouragement to begin united states and incubation centers in the state. Under the new policy, there is a window of as much as Rs 5 lakh as marketing assistance to MSMEs.
