The Uttar Pradesh government has introduced a major reform in the management of its decades-old MSME industrial estates, aiming to transform them into productive and revenue-generating hubs. The MSME Industrial Estate Management Policy, 2025, notified on Monday by Additional Chief Secretary (MSME) Alok Kumar, replaces 19 outdated orders dating back to 1978.
The new framework introduces a transparent e-auction system for allotting industrial plots and sheds, along with standardized pricing and strict payment timelines. The move follows cabinet approval last week.
Industrial estates in UP were first developed in the 1960s, but for decades they lacked a consistent management approach. The system functioned through piecemeal government orders, leading to inefficiency and, over time, financial strain. The new policy aims to streamline processes and ensure better utilization of land resources.
E-auction for Allotments: Plots and sheds will now be leased or rented through an online auction process.
Earnest Money Requirement: Bidders must deposit 10% of the land cost as earnest money to participate.
Payment Deadlines: Allotment holders must pay the total cost within three years, failing which the allotment may be cancelled.
Region-wise Pricing:
Western UP – ₹3,000 per sq. m
Central UP – ₹2,500 per sq. m
Eastern & Bundelkhand – ₹2,000 per sq. m
Rates will increase by 5% annually.
Discount for Upfront Payment: A 2% concession is available for immediate full payment.
Anchor Units: Only the state government can declare anchor units for estates.
SC/ST Reservation: 10% of plots in each region will be reserved for entrepreneurs from Scheduled Castes and Scheduled Tribes.
Defined Cancellation Rules: Clear criteria have been laid out for cancelling allotments in cases of non-compliance.
Officials say this policy is expected to attract more investors, ensure fair pricing, and generate sustainable revenue for the state’s MSME sector.