Noida: Entrepreneurs demand changes in industrial plot allotment policy

An association of industrial unit owners have urged the Uttar Pradesh government to change its recently announced policy in which it announced that allotment of industrial plots of size of up to 8,000 square metres would be done only through e-bidding.

The revised policy was announced on February 1, 2025, and plots up to 8,000 square metres will be allotted through an auction process, ensuring that entrepreneurs looking to establish industries are given priority over investors.

For industrial plots larger than 8,000 square metres, allotment will be carried out through an interview process based on objective and predefined criteria.

Manoj Kumar Singh, chief secretary, directed the authorities to prepare a clear and transparent policy for the allotment of industrial plots.

However, the industrial associations have objected to the new policy on the grounds that it would not encourage entrepreneurship.

“The government’s job is to provide cheap land to set up businesses that require huge investments. If a person has to purchase land in an auction, then (s)he will have to invest a huge amount just to purchase the land before setting up a business. We have written to the UP government demanding that plots of up to 2000 square metres be allotted through auction. And plots above 2,000 square metres should be allotted on interview basis with a reserve reasonable price,” said Surendra Nahta, president, Medium Small Micro Enterprises Industrial Association Noida, Gautam Budh Nagar.

The Industrial Entrepreneurs Association (IEA) has also demanded that the state government amend the allotment process for industrial plots above 2,000 sqm across all authorities.

The association has asked that these plots be allotted through a draw of lots rather than the current e-auction process. The IEA argued that the e-auction system makes it difficult for small-time industrialists to secure land, particularly as property dealers and investors often dominate the auction process.

In a letter addressed to the chief secretary, Uttar Pradesh, the IEA expressed concerns that the new policy undermines the potential of MSMEs, which are vital for economic growth. The association warned that the auction system could price out genuine MSME entrepreneurs, forcing them to seek land in other states.

Manoj Singhal, IEA president, said, “If this policy is implemented, it seems the authorities have become businessmen, with little regard for the support required for industries to grow.”

He further said that the authorities like Noida, Greater Noida, Yamuna Authority, and UPSIDA were created to support industrial growth with affordable land and good infrastructure, not to make profit through land auctions.

The IEA has called for the exclusion of plots above 2,000 sqm from the auction process and their allotment through a draw of lots. In addition, the association suggested giving priority to MSMEs that have been renting land for over five years, as well as streamlining the process for obtaining NOCs and consents through the Nivesh Mitra portal. Former IEA President, P K Tiwari, emphasized that the process should be simplified by generating deemed certificates from concerned departments within 10 days after uploading documents to the portal.

The Noida authority chief executive officer Lokesh M said, “The state government has announced the new policy and we are taking appropriate action in this regard.”