The proposed policy will provide an entire stamp duty subsidy for women entrepreneurs seeking to purchase the land needed to set up micro or small-sized units.
MSMEs in the Bundelkhand along with Purvanchal region will get the stamp duty in full assistance for land purchases
The initiative is targeted at boosting manufacturing and promoting new investment into the back pockets of the state.
The Uttar Pradesh (UP) government is believed to be considering modifications on its micro-, small and medium-sized companies (MSMEs) policy in order to increase women’s entrepreneurship.
As per Business Standard, the new policy proposed by Business Standard will give a complete stamp duty subsidies to women entrepreneurs who want to buy land for creating small and micro units. In addition other MSMEs could receive subsidies of 50 to 100 percent according to the region in which the state is located.
Essentially, the state government will offer a full subsidy in Industrially-backward regions of Bundelkhand and Purvanchal, while central UP and western UP regions, not including Gautam Buddha Nagar and Ghaziabad, will get a 75% subsidy on stamp duty for land purchase. In the industrial centers that are Gautam Buddha Nagar (Noida) and Ghaziabad the half-price subsidy is reportedly been suggested.
The initiative is designed to spur manufacturing and encouraging new investments in those pockets that are not owned by the government.
Furthermore, the new policies will also provide capital subsidy to encourage private companies. The changes are slated to provide 15% capital subsidy for new ventures located in Bundelkhand and Purvanchal as well as for Purvanchal. These subsidy amounts have been set at 10-20% for western and central parts in the State.
“We are currently working on changing the MSME policy to increase its appeal to private investment” The UP’s extra director of MSMEs Navneet Sehgal was quoted as saying.
In addition, the authorities will also provide interest subsidy of up to 6 percent for working capital loan to micro- and small business owners within Bundelkhand or Purvanchal districts. This will be primarily addressed through collaboration with commercial banks as well as other financial institutions across the state.
The policy changes are coming as the state gears up for a major investor summit that is scheduled for in January 2023. In addressing the Independence celebration Chief Minister Yogi Adityanath today (August 15) stated that the state has attracted investors that were worth INR four Lakh Cr in the past five years, and was looking to secure an additional INR 10, Lakh Cr in capital for the next summit.
This month this month, this month, the government was able to appoint Deloitte India as a consultant to create a strategy to reach the goal of 1 trillion dollars in 2027.
Despite these lofty claims however, the state hasn’t got an official policy for women-centric startups however, many of its competitors have.
In September last year, the state government launched Mission Shakti that was aimed to produce 75,000 female entrepreneurs. In addition, the state administration runs an Udyog Bandhu scheme which aims to encourage investment and assist entrepreneurs to set up and expand operations
In November last year , as well, the state’s government signed an MoU with the social commerce firm Frontier Markets to support rural women who need livelihood in addition to income generation..
Between 2017 between 2017 and 2022, over 10 million MSME entrepreneurs from the state were reportedly able to avail loans that were worth greater than INR 2.5 trillion.
According to the data provided by the Department for the promotion of trade and industry (DPIIT), Uttar Pradesh is home to 6,379 startups, the majority of which are based in Noida, Ghaziabad and Lucknow. In addition, the center stated that 1,219 startups were operating in the Bundelkhand as well as Purvanchal regions in the state.