The state Cabinet has approved a draft bill that proposes to exempt Micro, Small and Medium Enterprises (MSMEs) from certain approvals and inspections required for their establishment, and operations in the initial years.
This proposed law is likely to be called the Uttar Pradesh Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Act, 2020.
According to the rules of the draft legislation, every new enterprise seeking an acknowledgement certificate will have to furnish a “Declaration of Intent” to the District Level Nodal Agency (DLNA).
“The Declaration of Intent shall be submitted by the managing partner, in case of proprietary enterprise; the authorised partner in case of partnership enterprise; and the authorised person in case of other forms of enterprises. In case the enterprise has commercial operations on more than one premise, a Declaration of Intent shall be submitted for each such premises, separately,” reads the draft bill.
After receiving the Declaration of Intent, the Deputy Commissioner of the District Industry and Enterprise Promotion Center (DIEPC) will analyse it.
Within 72 hours of receiving the application, the District Level Empowered Committee (DLEC) has to convene a meeting under the chairmanship of the district magistrate. If the DLEC meeting is not convened in this period, approval for the “Declaration of Intent” has to be sought through circulation.
“Regarding the land, in accordance with the Uttar Pradesh Revenue Code, 2006, (UP Act No. 8 of 2012) the District Level Nodal Agency (DLNA) shall issue the required NOC/ approval within 72 hours of receiving the completed application, complete in all respects for agricultural land use change and land ceiling No-Objection Certificate (NOC). This shall be done after approval of the District Level Empowered Committee (DLEC). In case the District Level Empowered Committee (DLEC) meeting is not convened within 72 hours of receiving the application, approval for the Declaration of Intent shall be sought through circulation,” reads the proposed law.
According to the draft rules, an acknowledgment certificate will remain valid for 1,000 days from the day it is issued. Industries manufacturing tobacco products, gutka, pan masala, alcohol, aerated drinks, carbonated products, crackers, plastic carry bags of less than 40 microns, and other items notified under the Uttar Pradesh Pollution Control Board’s “red Category” will not be given permission.
The industries categorised under the “orange” and “green” categories will be eligible to establish their manufacturing units and operate them after getting due approvals from the Regional Officer of the pollution control board.