UP tweaks MSME policy, bank guarantee now mandatory

Lucknow, March 22 (SocialNews.XYZ) The Uttar Pradesh government has tweaked its Micro, Small and Medium Enterprises (MSME) policy, making it mandatory for private investors to provide bank guarantee to avail stamp duty exemption.

According to the notification issued by additional chief secretary, MSME, Amit Mohan Prasad, a bank guarantee equivalent to the stamp duty exemption will be deposited and released after the unit begins commercial production.

The district magistrate or the general manager of the district industries centre will confirm the commencement of production, it says.

The state government has made a provision for 100 per cent stamp duty exemption on purchase of land for MSME industrial parks, estates and flatted factory complex units spread over 10 acres of land or more by the private sector.

In addition to this, there are other provisions for exemption in stamp duty for MSME units. The state government approved the MSME policy in October 2022 in a bid to encourage small units.

According to the government spokesman, any investor willing to set up an MSME industrial park in 10 acres or more will get exemption from all stamp duties. Flatted factory complex units will also be exempted from stamp duty on purchase of land for setting up of units.

In addition to this, 100 per cent stamp duty exemption will also be provided for the MSME industrial units in Bundelkhand and Purvanchal.

This relaxation will be 75 per cent in Madhyanchal and Pashchimanchal except in Gautam Buddha Nagar and Ghaziabad where it will be 50 per cent.

Female entrepreneurs will get 100 per cent exemption for setting up a unit anywhere in the state.

Source: IANS