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NOCs in 3 days via single window & electricity connection — How Yogi govt is pushing MSMEs

The Yogi govt has notified the MSME (Establishment and Operations) Act of 2020. The law seeks to ease the process of opening up businesses in the state.

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Lucknow: Small business owners in Uttar Pradesh may finally escape the trouble of running from department to department to secure no objection certificates (NOCs) to start their ventures.

According to the Yogi Adityanath government’s new MSME (Establishment and Operations) Act of 2020, MSMEs will get NOCs from a single window, and electricity connection of up to 20 KW within three days of filing the application.

So far, any MSME would need 80 types of NOCs from 29 departments.

Now, small business owners will need to approach just the district-level nodal agency (DLNA), which will be established under the Act and have several state officials including the district magistrate (DM).

The law, which was notified Sunday, seeks to ease the process of opening up businesses in the state. It was introduced last month.

Speaking about the law, Navneet Sehgal, Additional Chief Secretary (MSME), UP, said the DM and deputy commissioner (industries) will be held responsible for any failure to issue licenses to new industries within three days.

“If someone wants to establish an industry in UP under MSME category, then they will have to submit the application along with all other required documents related to setting up their industry to the District Level Empowered Committee. After this the committee will immediately start checking and verify these documents and licenses needed to start the industry will be issued within three days,” said Sehgal.

According to him, the prescribed forms needed for other departments like revenue, labour, pollution control, energy and fire safety, among others, will also have to be submitted to this panel only.

The application can be filed under through the ‘Nivesh Mitra Portal’, the government portal for the sector.

Moreover, once a business obtains all the permissions, government officers won’t be allowed any inspection for 1,000 days.

Also read: Yogi govt to retire ‘under-performers’ aged 50 and above in UP’s health dept

The panel to decide applications

According to the Act, the DM will lead the district-level panels.

Each DLNA will also include deputy DM, 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.

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.

Additional chief secretaries of revenue, environment, forest, energy, labour, home, industrial development department and MSME will be part of the review committee.

According to the law, new ventures will also be given a fresh electricity connection of up to 20 KWs at the time of receiving NOC.

Those who seek a connection of over 20 KW capacity will have to apply through ‘Nivesh Mitra Portal’, after which a new connection will be issued within four days, said Sehgal.

New entrepreneurs

According to Sehgal, the state government’s policy of promoting MSMEs has resulted in nearly 3.70 lakh entrepreneurs applying for licenses since the imposition of lockdown in March.

So far, they have also availed bank loans amounting to more than Rs 13,000 crore with the help of the government. This will provide employment opportunities to millions of people in Uttar Pradesh, he said.

According to the state government, there are a total of 90 lakh MSME units, registered and unregistered, in UP.

Also read: Yogi says UP govt will fill up vacant posts after huge student protests on unemployment


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