UP Govt Notifies New MSME (Establishment and Operations) Act 2020

The Uttar Pradesh (UP) government has notified the new MSME (Establishment and Operations) Act of 2020 making it easier for young entrepreneurs to set up their ventures in the state they can now obtain No Objection Certificates (NOCs) from a single window.

So far, any MSME would need 80 types of NOCs from 29 departments but now according to the Yogi Adityanath government’s new MSME (Establishment and Operations) Act of 2020 which was notified Sunday, MSMEs will get NOCs from a single window, and electricity connection of up to 20 KW within three days of filing the application.

‘’A person will have to make an application through a “Declaration of Intent” to the District Level Nodal Agency (DLNA), which will have to issue an acknowledgment within 72 hours of receiving the application. On the basis of this acknowledgement, one will be able to establish his/her unit,’’ said the notification.

The DLNA will be established under the Act and will have several state officials including the District Magistrate (DM). It will also have a UP Pollution Control Board regional officer, a UP Vidyut Nigam executive engineer, a State Industrial Development Corporation deputy labour commissioner, an Electrical Safety Directorate assistant director, the district fire officer and a District Industries and Enterprise Promotion Centre deputy commissioner.

According to this law which was introduced last month, the DM and Deputy Commissioner (industries) will be held responsible for any failure to issue licenses to new industries within three days.

‘’The UP-Chief Secretary will head a review panel, which will meet DLNAs every three months to discuss the matters related to the status of applications received and approvals issued,’’ the notification added.

There will also be a review committee which will include Additional chief secretaries of revenue, environment, forest, energy, labour, home, industrial development department and MSME.

However, units producing products like tobacco, gutka, pan masala etc, alcohol, carbonated drinks, fire crackers, plastic bags of 40 microns or less or as banned by the government from time to time, any other item banned by the government and those units which are identified by UP Pollution Control Board as red category will not be covered by the act.