To encourage women entrepreneurs in micro, small, and medium enterprises (MSMEs), the state government is recasting its policy for the sector. Under the proposed new policy, women entrepreneurs will receive a 100 per cent stamp duty subsidy on the purchase of land for setting up micro and small units. Besides, other MSMEs will receive a 50-100 per cent subsidy depending on the region of the state.
Stamp duty will be far less in comparatively backward regions of Bundelkhand and Purvanchal (eastern UP) than in the central and western districts. This is aimed at encouraging fresh investment, particularly in the manufacturing sector, in laggard pockets and beyond the National Capital Region (NCR) districts of western UP. The Yogi Adityanath government has started preparing for a Mega Investors Summit in January, 2023. It has also roped in global consultancy major Deloitte to draft the blueprint for making the state a US 1-trillion economy in the next five years.
“We are in the process of updating our MSME policy to make it more attractive for private investment,” Additional Chief Secretary, MSME and Export Promotion, Navneet Sehgal said.
The state will offer a 100 per cent stamp duty rebate in Bundelkhand and Purvanchal, while central UP and western UP regions (excluding Noida and Ghaziabad) will get a 75 per cent subsidy. The state government is expected to provide a 50 per cent stamp duty subsidy in the districts of Gautam Buddha Nagar (Noida) and Ghaziabad.
Apart from the stamp duty waivers, the state will offer capital subsidies to woo the private sector. For example, the MSME in Bundelkhand and Purvanchal will receive capital subsidies in the range of 15 to 25 per cent. The respective capital subsidies in central and western UP will be capped at 10 to 20 per cent.
Meanwhile, the state will facilitate cheaper working capital loans for the sector from commercial banks and financial institutions. The state will offer up to 6 per cent interest subsidy on working capital loans, especially in Bundelkhand and Purvanchal districts. Under the Yogi Adityanath’s regime, about 10 million MSME entrepreneurs availed of loans worth more than Rs 2.5 lakh crore between 2017 and 2022.