 "The industrial scene in UP will soon be very different: Mahesh Gupta")
Instead of focusing on existing investment hubs like Noida, Greater Noida, Ghaziabad and Western UP, the government of Uttar Pradesh is working on making conditions in the eastern and central parts of the state more conducive for industry. The state government is making it easier to start a new businesses, paving the way for new investments. It is improving infrastructure facilities and carrying out reforms in the power sector - to augment generation and boost transmission efficiencies - at the same time initiating changes in policies and offering incentives to attract new investments. Mahesh Gupta, Principal Secretary, Industrial Development, government of UP, discusses the state government's plans and strategies with Siddharth Kalhans. Edited excerpts:
Instead of Noida, Greater Noida, Ghaziabad and western UP, the state government is developing eastern and central UP as new industrial hubs. What is the progress to date?
Traditionally, industries have mostly developed in Noida, Greater Noida, Ghaziabad and western UP. The remaining parts of the state, such as eastern UP and other areas, are not well developed. Now the state government is working to develop the eastern and central parts of UP to attract more industries and bring in investment. The state government is planning to set up new industrial townships in these areas. Take the example of the Trans Ganga Industrial Township in Unnao and Saraswati Township in Naini, Allahabad, in this regard. Besides, the Expressways and Eastern Dedicated Freight Corridors (EDFC) will also boost investment in the state. Work is now on to allot industrial plots in Trans Ganga and Saraswati industrial townships. More entrepreneurs are coming to set up industries in both places.
What benefits will result from the EDFC passing through UP?
Uttar Pradesh will get the maximum benefit of the EDFC. A total of 18 stations will fall under the EDFC in the state and on both sides there will be great opportunities for industrial development. The UP State Industrial Development Corporation (UPSIDC) has declared five km on either side as the industrial zone. This has boosted chances of industrial development in the area. We are going to construct the first greenfield railway station in this zone near Kanpur and industries like chemicals, cement, fertiliser and others will come up here.
Power supply plays an important role in the survival and growth of industry. How will the state government tackle this problem?
The present government has taken several initiatives in this regard, which has started showing results now. The initiatives taken to improve the generation and transmission sector will surely yield results. The state government is working on creating industrial feeders, which is showing results. There have been additions to the generation capacity in the recent past. In the last year alone the privately owned Lalitpur power project and two units of Anpara D have started generation. Similarly, a lot of investments are being made in the transmission sector also. By announcing the solar policy we are promoting green energy also and many projects are coming up in this sector. I can assure you that by 2017, UP will be a power-surplus state.
How is the 'Ease of Doing Business' project helping entrepreneurs?
The state government has enjoyed major success on this project. It has made doing business in UP easier now. Under this formula the formalities required from the pollution, power, commercial tax, urban development and various other departments can be obtained in a more simplified manner. We have placed the data base online, which is of great help to industry. Now the revenue maps are available online, which makes it easier to set up an industry. For the first time, the single window clearance system is actually working on the ground.
Udyog Bandhu has been active for a long time but industry is not very satisfied with it.
The state government has given more teeth to the Udyog Bandhu now. Many formalities can be carried out online by simply filing a customer application form (CAF) on the portal of Udyog Bandhu. The portal solves many problems of industries. At a single point, many fees can be deposited online through cash, chalan, credit or debit cards. The officers deputed at the Udyog Bandhu are ready to listen to every problem of entrepreneurs.
The MSME sector has many problems. How will you address them?
It is not so now. In many cases the problems of the MSME sector have been heard and solved within no time. It is true that we have been seeking investments above Rs 50 crore in the priority sector and some sops and rebates have been extended to them, but at the same time the state government is trying seriously to reduce this limit. Very soon investments of lesser amount will get the same benefits. We are in constant touch with MSMEs and addressing their problems. After all, the MSME sector generates the maximum amount of employment in Uttar Pradesh and no government can forget this. There has been regular communication with the MSME sector in the state.
Instead of Noida, Greater Noida, Ghaziabad and western UP, the state government is developing eastern and central UP as new industrial hubs. What is the progress to date?
Traditionally, industries have mostly developed in Noida, Greater Noida, Ghaziabad and western UP. The remaining parts of the state, such as eastern UP and other areas, are not well developed. Now the state government is working to develop the eastern and central parts of UP to attract more industries and bring in investment. The state government is planning to set up new industrial townships in these areas. Take the example of the Trans Ganga Industrial Township in Unnao and Saraswati Township in Naini, Allahabad, in this regard. Besides, the Expressways and Eastern Dedicated Freight Corridors (EDFC) will also boost investment in the state. Work is now on to allot industrial plots in Trans Ganga and Saraswati industrial townships. More entrepreneurs are coming to set up industries in both places.
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Besides these two industrial townships, the IT City of Lucknow (which is being developed by HCL), Perfume Park in Kannauj, Plastics City in Auraiyya, Leather Cluster in Kanpur, and Food Park in Bareilly are some of the mega projects where big investments will come in the days to come. Besides these on both sides of the Agra-Lucknow Expressway and Samajwadi Poorvanchal Expressway, new industrial projects will come up. In the days ahead the industrial scene in UP will be different.
What benefits will result from the EDFC passing through UP?
Uttar Pradesh will get the maximum benefit of the EDFC. A total of 18 stations will fall under the EDFC in the state and on both sides there will be great opportunities for industrial development. The UP State Industrial Development Corporation (UPSIDC) has declared five km on either side as the industrial zone. This has boosted chances of industrial development in the area. We are going to construct the first greenfield railway station in this zone near Kanpur and industries like chemicals, cement, fertiliser and others will come up here.
Power supply plays an important role in the survival and growth of industry. How will the state government tackle this problem?
The present government has taken several initiatives in this regard, which has started showing results now. The initiatives taken to improve the generation and transmission sector will surely yield results. The state government is working on creating industrial feeders, which is showing results. There have been additions to the generation capacity in the recent past. In the last year alone the privately owned Lalitpur power project and two units of Anpara D have started generation. Similarly, a lot of investments are being made in the transmission sector also. By announcing the solar policy we are promoting green energy also and many projects are coming up in this sector. I can assure you that by 2017, UP will be a power-surplus state.
How is the 'Ease of Doing Business' project helping entrepreneurs?
The state government has enjoyed major success on this project. It has made doing business in UP easier now. Under this formula the formalities required from the pollution, power, commercial tax, urban development and various other departments can be obtained in a more simplified manner. We have placed the data base online, which is of great help to industry. Now the revenue maps are available online, which makes it easier to set up an industry. For the first time, the single window clearance system is actually working on the ground.
Udyog Bandhu has been active for a long time but industry is not very satisfied with it.
The state government has given more teeth to the Udyog Bandhu now. Many formalities can be carried out online by simply filing a customer application form (CAF) on the portal of Udyog Bandhu. The portal solves many problems of industries. At a single point, many fees can be deposited online through cash, chalan, credit or debit cards. The officers deputed at the Udyog Bandhu are ready to listen to every problem of entrepreneurs.
The MSME sector has many problems. How will you address them?
It is not so now. In many cases the problems of the MSME sector have been heard and solved within no time. It is true that we have been seeking investments above Rs 50 crore in the priority sector and some sops and rebates have been extended to them, but at the same time the state government is trying seriously to reduce this limit. Very soon investments of lesser amount will get the same benefits. We are in constant touch with MSMEs and addressing their problems. After all, the MSME sector generates the maximum amount of employment in Uttar Pradesh and no government can forget this. There has been regular communication with the MSME sector in the state.