UP Government issues guidelines for implementation of Uttar Pradesh Micro, Small and Medium Enterprises (Establishment and Operation Simplification) Act-2020.

The State Government of Uttar Pradesh vide its notification dated 20th September 2020 has issued guidelines for implementation of Uttar Pradesh Micro, Small and Medium Enterprises (Establishment and Operation Simplification) Act-2020.

The Act proposes to exempt MSMEs from various approvals and inspections that are required for their establishment and operations in the initial years and has allowed MSMEs to start operations within 72 hours after submitting their application, without having to wait for no-objection certificates (NOCs) from various departments.

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. 

Further, a committee is created under this Act to facilitate the registration process and the application can be made through a “Declaration of Intent” at the District Level Nodal Agency (DLNA), which will have to issue an acknowledgment within 72 hours of receiving the application. This acknowledgment certificate will remain valid for 1,000 days from the date on which it is issued.

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