"No Special approval needed to commence operations for new MSME units for next 3 years" :Satish Mahana

“No Special approval needed to commence operations for new MSME units for next 3 years” says Satish Mahana, Industry Minister, Uttar Pradesh

“Before the lockdown, the feeders at Industrial areas recorded 8600 MW electricity consumption which dipped to 3000 MW in April’20. As per current reading, current consumption is at 85% of pre-lockdown levels which is a good sign” noted UP’s Industry Minister, Sri Satish Mahana. Mr Mahana was addressing an e-interaction with Industry representatives across the state organized by the Confederation of Indian Industry (CII). Mr Mahana also shared that the state government is working on garnering investments from Japan, US, Korea which are actively looking for options to shift base from China. While he acknowledged that migration of labour is posing a challenge to industrial revival, the State Government is trying to resolve labour related issues to put the economy back on track.

Mr Ankit Gupta, Chairman, CII Uttar Pradesh State Council & Director, Dayal Group appreciated the fiscal package announced by the Central government aimed at making the country & state Áatm-Nirbhar which would provide some relief to the Industries. He also highlighted that labour reforms in the state have become the need of the hour to address the current labour dynamics of the country since UP has a large population of migrant workers.

Responding to the various queries by the industry representatives, the Industry Minister clarified that no pass is required for workforce that wants to return to their work town within the state. For people whose work town is in other states, passes shall be provided to them to return though the state government is also working to place its migrant workers within the state itself. Apart from this, the representatives highlighted that industries in Ghaziabad, Noida & Greater Noida have mobile workforce who stay in Delhi hence they would need passes to report to work. Responding to which Mr Mahana said that it would be facilitated shortly.

He urged the MSME business owners to register their issues & suggestions through the MSME Sathi application or website which has been developed for quick resolution for operational difficulties, pending payments etc. It shall enable the department to take it up with the concerned departments. He also clarified that “No Special approval is needed to commence operations for new MSME units for next 3 years. Such units just need to intimate the department in writing to inform them regarding commencement”. The move was appreciated by the members who said that it was a welcome step to further ease the level of doing business in the state.

Another concern shared by Mr CP Gupta, Vice Chairman, CII Uttar Pradesh State Council & MD, Ambica Steel during the interaction was that of industries operating in the Ghaziabad & Bulandshahar region who were not allowed to operate owing to NGT ban imposed to address depleting ground water levels in the area. He suggested that with the advent of new technology, the sewage treatment plants in these regions is functioning quite efficiently. Hence, the industrial units should be permitted to run by using the treated water without allowing them to extract water from the ground. Besides this, Government can also provide such water through pipelines to the industries which will save a lot of extraction of ground water since water from the STP plant is being wasted because of non-utilization by industry or construction sector. The suggestion was well taken & Mr Mahana said that the department would certainly work on this.

Speaking during the interaction, Mr Rajesh Sikka, Chairman, CII Western UP Zonal Council & MD, Metaflex Doors Ltd said “A number of points can be taken up to give impetus to economic revival. These include short term measures such as Electricity fixed charge waiver, ESI payment waiver under Ayushman scheme and bonus to be optional & not mandatory under current situation”. Mr Sundeep Gupta, Vice Chairman, CII Western UP Zonal Council & Director, Jakson Group suggested some long term measures that can be adopted. These included supply of low cost power to MSMEs generated through solar grid, long term capital to MSMEs at lower rate, capital subsidy for manufacturing of renewable energy products such as solar pumps, lights etc, pursuance of Vehicle Scrappage policy at Central govt and reduction of GST rates on high gst items for a year or two.