LexThe UTTAR PRADESH MICRO, SMALL AND MEDIUM ENTERPRISES (FACILITATION OF ESTABLISHMENT AND OPERATION) ACT, 2020
Uttar Pradesh · state statute
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THE UTTAR PRADESH MICRO, SMALL AND MEDIUM ENTERPRISES
ACT, 2020
ARRANGMENT OF SECTIONS
1. Short title, extent and commencement
2. Difinitions
3. Empowered Committees
4. Functions of the Empowered Committees
5. Nodal Agencies
6. Functions of the Nodal Agencies
7. Filing of Declaration of Intent
8. Grant Acknowledgment Certificate
9. Effect and validity of the Acknowledgement Certificate
10. Grant of Exemption
11. Exception
12. Establishment of Micro and Small Enterprises Facilitation Council
13. Savings
14. Recovery of Land Revenue Arrears
15. Protection of action taken in good faith
16. Power to remove difficulties
17. Power to make rules
18. Statement of Objects and Reasons
Serial No.-135
Registration Number-SSP/L.W./
NP-91/2014-16
License to Post at Concussion Rate
No. 1554(2)/LXXIX-V-1-20-1(ka)-38-20
Dated Lucknow, August 31, 2020
In pursuance of the provisions of clause (3) of Article 348 of the Constitution, the Governor
is pleased to order the publication of the following English translation of the Uttar Pradesh Sukshm,
Laghu Evam Madhyam Udyam (Sthapan Evam Sanchalan Sarlikaran) Adhiniyam, 2020 (Uttar
Pradesh Adhiniyam Sankhya 30 of 2020) as passed by the Uttar Pradesh Legislature and assented
to by the Governor on August 28, 2020. The Sukshm, Laghu Evam Madhyam Udyam Anubhag -2,
is administratively concerned with the said Adhiniyam.
THE UTTAR PRADESH MICRO, SMALL AND MEDIUM ENTERPRISES
(FACILITATION OF ESTABLISHMENT AND OPERATION) ACT, 2020
(U.P. Act no. 30 of 2020)
[As passed by the Uttar Pradesh Legislature]
AN
ACT
to provide for exemption from certain approvals and
inspections required for establishment and operation of Micro,
Small and Medium Enterprises, for initial years of establishment
and operation in the State and matters connected therewith and
incidental thereto.
Preamble: WHEREAS, with a view to promote inclusive
economic growth and employment generation in the State by
addressing specific needs of the Micro, Small and Medium
Enterprises (MSME) and to promote entrepreneurship, it is
expedient to give effect to exemption from certain approvals
and inspections required to faciliate the establishment and
operation of Micro, Small and Medium Enterprises in the State
and matters connected there with and incidental thereto.
IT IS HEREBY enacted by the Uttar Pradesh State
Legislature in the Seventy -first year of the republic of India, as
follows:-
1. (1) this act may be called the Uttar Pradesh Micro, Small
and Medium Enterises (Facilitation of Establishment and
Opreation) Act, 2020.
(2) It extends to the whole of the State of Uttar Pradesh.
(3) It shall come into force on such date as the State
Government may, by notification in the Gazette, appoint.
Short title, extent
and
commencement
Difinitions
2. In this Act, unless the context otherwise requires,˗
a. "Act" means the Uttar Pradesh Micro, Small and Medium
Enterprises (Facilitation of Establishment and Operation) Act,
2020;
b. "Acknowledge Certificate" means the Acknowlegement
Certificate issued under section 8 of the Act;
c. "Approval" means permission, no -objection, clearance,
consent, approval, registration, license and the like,require
under any Uttar Pradesh Law in connection with the
estblishment or operation of an enterprise in the State of Uttar
Pradesh;
d. "Competent Authority" means any department or agency of
the Government or a local authority, statutory body, state
owned corporation, Panchayati Raj Institution, Municipality,
Urban Development Authorities, Ubran Improvement Trust or
any other authority or agency constituted or established by or
under any Uttar Pradesh law or under administrative control of
the Government, which is entrusted with the powers or
responsibilities to grant or issue approval for establishment or
operation of an enterprise in the State;
e. "Declaration of Intent" means i nstention to
establish/expand/diversify an enterprise, expressed through
furnishing the in formation and submitting (either in physical or
electronic format) on the format as annexed herewith as
Annexure no.-1, along with required documents;
f. "Enterprise" means micro, small or medium enterprise;
g. "Micro, Small or Medium Enterprise" means a Micro, Small
or Medium Enterprise, as define d in the Micro, Small and
Medium Enterprises Development Act, 2006 (Central Act No.
27 of 2006), as amended from time to time;
h. "Government" means the State Government of Uttar
Pradesh;
i. "State" means the State of Uttar Pradesh;
j. "Commencement of C ommercial Operation" means the
date on whi ch the enterprise issues the fir st bill of supply/
invoice/tax invoice, of the goods manufactured or services
rendered relating to declaration of intent firnitured under this
Act;
k. “New enterprise” means such Micro, Small or Medium
Enterprise whose date of commencement of commercial
operation is on or after the date of commencement of the Act. It
also includes expansion/ diversification by existing enterprises
wherein they increase their gross block by at least 25 per cent
through new capital investment;
l. “Nodal Agency” means the Nodal Agency established under
section 5 of the Act;
m. “Notification” means a notification published in the Gazette
of the State of Uttar Pradesh and the word ‘notified' shall be
construed accordingly.
Empowered
Committees
3. The Government shall by notification establish two
empowered committees, as follows:-
(1) High level State Empowered Committee (HSEC): Under
the chairmanship of Chief Secretary, Uttar Pradesh, having
such members as may be notified from time to time. Additional
Chief Secretary /Principal Secretary/Secretary, Department of
Micro, Small and Medium Enterprise (MSME) & Export
Promotion, Government of Uttar Pradesh being the Member
Secretary of the such committee.
(2) District Level Empowered Committee (DLEC): Under the
Chairmanship of District Magistrate of concerned district,
having the following members :-
1. Sub Divisional Magistrate (Concerned) Member
2. Regional Officer, U.P. Pollution Control Board Member
3. Executive Engineer, U.P. Power Corporation Ltd. Member
4. Deputy Labour Commissioner/Assistant Labour Member
Commissioner
Member
5. Regional Manager, U.P. State Industrial Development
Corporation (UPSIDC)
Member
6. Assistant Director, Directorate of Electrical Safety Member
7. District Fire Safety Officer Member
8. Deputy Commissioner, District Industry and
Enterprise Promotion Center (DIEPC)
Member/
Secretary
4. (1) High level State Empowered Committee (HSEC)
shall address the inter -departmental policy level issues which
are necessary to give effect to the provisions of the Act. Issues
shall be referred to High Level State Empower Committee
(HSEC) by the State Level Nodal Agency (SLNA).
(2) District Level Empowered Committee (DLEC) shall
approve/ reject the Declaration of Intent filed (either in physical
or electronic format) with District Industry and Enterprise
Promotion Center (DIEPC) for the purpose of issuance of
Acknowledgement Certificate.
Functions of the
Empowered
Committees
5. The following shall be the nodal agencies for the purpose of
this Act :
(1) State Level Nodal Agency (SLNA): Subject to the
superintendence, direction and control of the Government and
the High level State Empowered Committee (HSEC), the
Directorate of Indust ries, Department of Micro, Small and
Medium Enterprise (MSME) & Export Promotion, Government
of Uttar Pradesh shall be the State level Nodal Agency for the
purpose of this Act.
(2) District Level Nodal Agency (DLNA): Subject to
superintendence, direction and control of the Government and
the District Level Empowered Committee (DLEC), District
Industry and Enterprise Promotion Center (DIEPC) shall be the
District Level Nodal Agency for the purpose of this Act.
Nodal Agencies
6. The powers and functions of the nodal agencies shall be as
follows:-
(1) State Level Nodal Agency (SLNA) shall address the
issues referred to it by District Level Empowered Committee
(DLEC)/ District Level Nodal Agency (DLNA). If any issue
relates to policy making or inter-departmental level, State Level
Nodal Agency (SLNA) shall refer it to the High level State
Empowered Committee (HSEC) for guidance.
Functions of the
Nodal Agencies
(2) District Level Nodal Agency (DLNA) shall assist and
facilitate establishment of enterprises in the State through
issuance of Acknowledgement Certificate on the
recommendations of the District Level Empowered Committee
(DLEC) as defined in section 8 of the Act. The District Level
Nodal Agency (DLNA) shall also maintain the record of
Declaration of Intent received and Acknowledgement Certificate
issued under this Act.
(3) The Government may by notification in the Gazette
assign such other powers and functions to the Nodal Agencies
as it may deem fit for giving effect to the provisions of this Act.
Filing of
Declaration of
Intent
7. (1) Every new enterprise seeking Acknowledgement
Certificate under the Act shall furnish a duly filled Declaration of
Intent to District Level Nodal Agency (DLNA) on the format as
annexed herewith as Annexure no. -l along with the following
documents:-
(a) Land related application forms [in accordance with
Uttar Pradesh Revenue Code, 2006 (U.P. Act no. 8 of
2012)]
(b) Electrical Safety related application form ;
(c) Pollution related application form ;
(d) Labour related application form ;
(e) Fire Safety related application form;
(2) The Declaration of Intent shall be submitted by the
Managing Partner, in case of proprietary enterprise; the
Authorized Partner in case of partnership enterprise; and th e
authorized person in case of other forms of enterprises. In case
the enterprise is having commercial operations on more than
one premise, a Declaration of Intent shall be submitted for each
such premises, separately.
(3) On receipt of a Declaration o f Intent completed in all
respects, the Deputy Commissioner, District Industry and
Enterprise Promotion Center (DIEPC), as the Member
Secretary of the DLEC, shall analyse the declaration under the
provisions of this Act. Additionally, forms received with t he
Declaration of Intent pertaining to other departments shall be
made available to the concerned departments online. After 72
hours of receiving of application, meeting of the District Level
Empowered Committee (DLEC) shall be held under the
Chairmanship of the District Magistrate. In case the District
Level Empowered Committee (DLEC) meeting is not convened
within 72 hours of receiving the application, approval on
Declaration of Intent shall be sought through circulation.
Grant
Acknowledgment
Certificate
8. (1) All the applications received by Deputy Commissioner,
District Industry and Enterprise Promotion Center
(DIEPC)/Member Secretary of District Level Empowered
Committee (DLEC), along with all related documents, shall be
placed before District Level Empowered Committee (DLEC) for
deliberating and deciding on issuance of the Acknowledgment
Certificates.
(2) Acknowledgment Certificates shall be issued by Deputy
Commissioner, District Industry and Enterprise Promotion
Center (DIEPC), on the recommendations o f District Level
Empowered Committee (DLEC) in the format as annexed
herewith as Annexure no.2:-
(a) All acknowledgements shall be uploaded on Nivesh
Mitra portal of the State Government;
(b) On receipt of building plan approval request of the
applicant/enterprise in the format prescribed by the
development authorities, as per their master plan, permission
shall be granted within the stipulated time period;
(c) Regarding the land, in accordance with the Uttar
Pradesh Revenue Code, 2006, (U.P. A ct no. 8 of 2012) the
District Level Nodal Agency (DLNA) shall issue the required
approval within 72 hours of receiving the competed application
complete in all respects for agricultural land use change and
land ceiling No-Objection Certificate (NOC). This shall be done
after approval of District Level Empowered Committee (DLEC).
In case District Level Empowered Committee (DLEC) meeting
is not convened within 72 hours of receiving the application,
approval on Declaration of Intent shall be sought through
circulation.
Explanation : Any Applicant/ enterprise who has
moved to the Competent Authority to so obtain all or any of the
approvals as defined in clause (c) of section 2 of this Act,
before the commencement of this Act may also opt to furnish
Declaration of Intent to start an enterprise under this section.
9. (1) An Acknowledgment Certificate issued under section 8
of this Act shall, for all purposes, have effect as if it is an
approval as defined in clause (c) of section 2, for a period of
1000 days from the date of its issuance and after the expiry of
the said period of 1000 days, the enterprise shall have to obtain
required approvals as defined in clause (c) of section 2 within
100 days from the date of such expiry :-
Provided, that the Acknowledgement Certificate shall
not entitle a person or an enterprise to use a land in deviation
to the land use as specified in the master plan wherever such
plan is in force. It shall also not entitle a person or an enterprise
to use the land falling in restricted category under various laws
of the Government. Where the la nd is in the rural area and
outside the master plan notified area, no agricultural land use
conversion shall be required for a period of 1000 days wherein
Acknowledgement Certificate is valid, and Land Ceiling Act
shall also not be effective in such rural areas for starting an
enterprise for a period of 1000 days wherein Acknowledgement
Certificate is valid.
(2) During the period of 1000 days specified in sub -
section (1), no competent authority shall undertake any
inspection for the purpose of, or in conne ction with, any
approval as defined in clause (c) of section 2.
(3) Except sections 8 and 15 of Industrial Development
Area Act, 1976, all other sections shall be effective for the
purpose of this Act.
Effect and validity
of the
Acknowledgement
Certificate
10. Where the Government or any authority under it is capable
of exempting an enterprise from any approval or inspection or
any provision relating thereto, under any Central Act, the
Grant of
Exemption
Government, as the case may or be any such authority, subject
to the provisions of such Central Act, exercise such powers to
grant such exemption to any enterprise established in the State
for a period of not less than 1000 days from the date of issue of
Acknowledgement Certificate under section 8.
11. This Act shall not be applicable on enterprises submitting
Declaration of Intent to manufacture following items:-
i. Tobacco products, gutka, panmasala etc.;
ii. Alcohol, aerated drinks, carbonated products etc.;
iii. Manufacturing of crackers;
iv. Plastic carry bags of less than 40 microns or plastic
carry bags of the thickness as classified in prohibited category
from time to time by the State Government;
v. Products notified under “Red Category” by Uttar
Pradesh Pollution Control Board. However, industries
categorised under "Orange" and "Green" category shall be
eligible to establish and operate after getting due permissions
from the Regional Office, State Pollution Control Board;
vi. Other such products which are categorised in
prohibitory list from time to time.
Exception
12. Wherever and whenever required, the Micro and Small
Enterprises Facilitation Council as mentioned in the section 30
read with sub -section (3) of section 21 of Micro, Small and
Medium Enterprises Development Act, 2006, shall be
established for every division by the State Government through
notification under the chairmanship of Divisional
Commissioners. Joint Commissioner, Industries of the
concerned division shall act as a member secretary of the
council.
Establishment of
Micro and Small
Enterprises
Facilitation
Council
Savings
13. Subject to the provisions of section 10, nothing contained in
this Act shall be construed as exempting any enterprise from
the application of the provisions of any law for the time being in
force, or any regulatory measures and standards specified
thereunder, except to the extent expressly provided in this Act.
Recovery of
Land Revenue
Arrears
14. If an enterprise does not file any appeal under section 19 of
the Micro, Small and Medium Enterprises Development
(MSMED) Act, 2006 for setting aside any decree, award or
other order made either by the Council itself or by any
institution or centre or if such appeal is dismissed, in that
situation such decree, award or order shall be executed by the
concerned District Collector and the amount due shall be
recovered as arrears of land revenue.
Protection of
action taken in
good faith
15. Taken in good faith 15. No suit, prosecution or other legal
proceedings shall lie against the Government or Nodal Agency
or Competent Authority or any employee of the Government,
Nodal Agency or Competent Authority for anything which, is
done or intended to be done in good faith, under this Act or any
rules made thereunder.
Power to remove
difficulties
16. (1) If any difficulty arises in giving effect to the provisions of
this Act, the Government may, by order published in the
Gazette, make such provisions not inconsistent with the
provisions of this Act, as may appear to it to be necessary for
removing the difficulty:
Provided that no such order under this section shall be
made after the expiry of a period of two years from the
commencement of this Act.
(2) Every order made under this section shall be laid,
as soon as may be, after it is made, before each House of the
State Legislature.
Power to make
rules
17. (1) The State Government may, by notification in the
Gazette, make rules to carry out the provisions of this Act.
(2) All such rules made under this Act shall be laid, as
soon as may be, after they are so made, before each House of
the State Legislature, while it is in session, for a period not less
than fourteen days which may b e comprised in one session or
in two successive sessions and, if before the expiry of the
session in which they are so laid or of session immediately
following, the House of the State Legislature make any
modification in any such rules or resolves that any such rules
should not be made, such rules shall, thereafter, have effect
only in such modified form or be of no effect, as the case may
be. Any such modification or annulment shall be without
prejudice to the validity of anything previously done thereunder.
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STATEMENT OF OBJECTS AND REASONS
To promote inclusive economic development and employment generation in the State by
addressing specific needs of the Micro, Small and Medium Enterprises (MSME) and promoting
entrepreneurship. It has been decided to make to law to provide exemptions from certain approvals
and inspections required for establishment and operation of Micro, Small and Medium Enterprises,
for initial years of establishment and operation.
The Uttar Pradesh Micro, Small and Mediu m Enterprises (Facilitation of Establishment and
Operation) Bill, 2020 is introduced accordingly.
By order
J.P. Singh-II,
Pramukh Sachiv.
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