UP’s MSME Industrial Estate Management Policy 2025

• 13 Aug 2025

Why in News?

The Uttar Pradesh government has given its approval for the Micro, Small, and Medium Enterprises (MSME) Industrial Estate Management Policy (2025), designed to promote industrial growth by simplifying land allocation and improving facilities for businesses. 

• The new policy is set to replace 19 outdated government orders issued since 1978. 

Key Features of the Policy

• Land Allocation: Land, sheds, and plots in industrial estates will be allocated via lease/rent through auction or e-auction modes. 
  • Successful bidders will pay 10% of the reserved price as earnest money, with the remaining balance payable in lump sum or installments over one to three years. Immediate payments will be eligible for a 2% discount. 
• Reservation for SC/ST Entrepreneurs: 10% of all plots and sheds will be reserved for SC/ST entrepreneurs.  
  • If no eligible applicant comes forward, the plots may be reallocated to other categories to ensure continuous development. 
• Price Structure: The policy introduces fixed reserved prices for industrial plots in various regions for FY 2025-26, including Madhyanchal, Pashchimanchal, Bundelkhand and Purvanchal. 
  • The rates will increase by 5% annually, starting from 1st April each year. 
• Preferential Rates for Anchor Units: Special rates may be offered to anchor units expected to drive significant MSME growth in the estates. 
• Infrastructure Facilities: Industrial estates will be equipped with essential amenities, including common facility centers, power substations, fire stations, women's hostels, dormitories, crèches, eco-friendly parks, training institutes, and health services. 
• Standard Operating Procedures (SOPs): The Commissioner and Director of Industries will oversee the implementation of SOPs for land allocation, property transfer, revitalization, subletting, and surrender. 

Classification	Micro	Small	Medium
Manufacturing and Services Enterprises	Investment: Not more than Rs. 2.5 crore   Annual Turnover: not more than Rs. 10 crore	Investment: Not more than Rs. 25 crore   Annual Turnover: Not more than Rs. 100 crore	Investment: Not more than Rs. 125 crore   Annual Turnover: Not more than Rs. 500 crore