Context:
Recently, while presiding over an MSME department meeting, Chief Minister Yogi Adityanath highlighted the need to adopt a plug-and-play model to expand the state’s industrial land bank and ensure faster, more efficient access for micro, small, and medium enterprises.
More on the News:
- He stated that the lease rental framework should operate on a revenue-sharing basis to ensure adequate and sustainable land availability for industrial projects.
- He added that this model should be supported by a comprehensive policy focused primarily on the MSME sector.
- Need of the proposed Model: Rising land prices, especially in the Delhi-NCR region, pose a significant barrier to industrial expansion, technological upgradation, and the creation of new units.
- Hence, providing MSMEs with affordable plots and ready-made industrial sheds becomes crucial for sustaining Uttar Pradesh’s growth trajectory.
- Objective: To enable small and medium units to begin production immediately, without unnecessary hurdles.
- It aims to allow industries to concentrate on production, machinery installation and job creation, rather than spending time and capital on land acquisition and construction.
- Significance: This approach will reduce financial risks for MSMEs and offer them greater operational flexibility.
- The proposed policy should ensure long-term stability and transparency while keeping land under government control.
- Revenue-sharing mechanism: It should be simple, transparent, and supportive of industrial growth, ensuring the optimal use of the state’s land resources.
About Plug and-Play model
- Definition: It provides businesses with all the basic facilities they need to start their operations, such as electricity, roads, transportation, sewage, water, communication towers, high-speed internet services, etc.
- The model provides pre-installed amenities and furniture for businesses to rent.
- Entrepreneurs just have to move in and start operations there.
- Ownership: Under this model, industrial development authorities will retain ownership of the land while developing ready-made industrial sheds or undertaking construction through public-private partner ships.
- These prefabricated, usable facilities will be offered to industries on a rental basis.
- Execution: The model may be executed through a public-private partnership model with a design-build-finance-operate transfer (PPP DBFOT) structure.
- PPP DBFOT structure: Private partner will handle design, construction, financing, and operations.
- The authority retains land ownership and regulatory oversight.
- PPP DBFOT structure: Private partner will handle design, construction, financing, and operations.
Daily MCQ Practise
Q1. Consider the following statements regarding MSMEs in Uttar Pradesh:
- Uttar Pradesh has a 90-lakh MSME base, contributing around 16% of India’s total MSME count.
- In 2022, UP’s MSME exports were valued at approximately $16 billion, accounting for nearly 70% of the state’s total exports.
Which of the above statements is/are incorrect?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans.(a)