Ease of Doing Business for MSMEs: The government of Uttar Pradesh is revising its strategy to support micro, small and medium enterprises (MSMEs) and promote female entrepreneurship.
According to the report by Business Standard, women business owners would be given a 100% stamp duty subsidy on land purchases for establishing micro and small units under the proposed new policy. Besides, a 50 to 100 percent subsidy will be given to other MSMEs, depending on their location in the state.
Compared to the central and western districts, the less developed regions such as Bundelkhand and Purvanchal in eastern Uttar Pradesh would have lower stamp duty rates. This is done in an effort to stimulate new investment, notably in the manufacturing sector, outside of the Western UP National Capital Region (NCR) districts and in underdeveloped areas.
The state would grant a 100 percent stamp duty grant in Bundelkhand and Purvanchal, while central and western Uttar Pradesh (apart from Noida and Ghaziabad) would receive a 75 percent subsidy. In Gautam Buddha Nagar in Noida and Ghaziabad, the state government might offer a 50 percent stamp duty subsidy.
The state government is also working on a major investor summit next year in January. Additionally, it has hired the consulting firm Deloitte, to plan the roadmap to turn the state into a trillion-dollar economy in the next five years.
Navneet Sehgal, Additional Chief Secretary, State MSME and Export Promotion, said, “We are in the process of updating our MSME policy to make it more attractive for private investment.”
Along with the stamp duty exemptions, the state intends to attract the private sector with capital subsidies. For instance, MSMEs in Bundelkhand and Purvanchal, would get capital subsidies in the range of 15 to 25 percent. In central and western Uttar Pradesh, the corresponding capital subsidies will be set at 10 to 20 percent.
Meanwhile, the state will facilitate cheaper working capital loans for the sector from commercial banks and financial institutions. The state will offer up to six per cent interest subsidy on working capital loans, especially in Bundelkhand and Purvanchal districts.
Under Yogi Adityanath’s regime between 2017 and 2022, about 10 million MSME entrepreneurs had availed loans around Rs 2.5 trillion.