In the wake of halting labor reforms and providing ample leeway to existing and new industrial units in the state to help alleviate post-Covid-19 distress, the government of Uttar Pradesh decided to grant industry status to the warehousing and logistics sector, thereby reducing the cost of setting up such units.
Stating that Chief Minister Yogi Adityanath has given his approval for the new incentive for the warehousing and logistics sector, Industrial Development Minister Satish Mahana said that this sector has immense potential to create huge opportunities. jobs that are needed to cope with the unemployment crisis facing migrants who are forced to return to their countries of origin.
“By granting industry status to the sector, the state is poised to establish itself as a favorable destination for investments in the sector in northern India,” the minister said, adding that the operations of the warehousing and logistics sector will now be considered industrial. the activities of all state development authorities in the context of land use.
Infrastructure and Industrial Development Commissioner Alok Tandon said this would significantly reduce the cost of setting up units in Uttar Pradesh.
“From now on, industrial land use charges will apply to units and parks in the state’s warehousing and logistics sector. Currently, land use change is charged at 150% of the rotation rate from agriculture to commercial land use, which will only be 35% of the rotation rate, because the change in land use. land from agriculture to industry will be applicable, ”he said.
Elaborating on the new initiative, the Principal Secretary, Infrastructure and Industrial Development, Alok Kumar, informed that from now on, the activities of parks and storage and logistics units will be allowed for land use of “industrial land” in all areas. State industrial development authorities in accordance with the provision of “UP Warehousing & Logistics Policy-2018”.
“Now the warehousing and logistics units will pay 1.5 times the industrial rate to the industrial development authorities for the allocation and use of land in areas reserved for industrial activity, resulting in substantial savings by compared to the existing costs of establishing units in the area, as the land costs will be reduced to almost a third; for example, at present the land available for the warehousing and logistics sector costs an average of Rs 40-60,000 per m², which will be reduced to around Rs 15-20,000 per m² only after this disposition “, he added.
Orders have been issued to all industrial development authorities including Noida, Greater Noida, UP State Industrial Development Authority (UPSIDA), Lucknow Industrial Development Authority (LIDA), Satharia Industrial Development Authority (SIDA), Yamuna Expressway Industrial Development Authority (YEIDA), The Gorakhpur Industrial Development Authority (GIDA) and the future Integrated Industrial Township Greater Noida on the Delhi-Mumbai Industrial Corridor (DMIC-IITGNL) will adopt this provision by immediately amending their master plans and building regulations.