Uttar Pradesh act 030 of 2020 : The UTTAR PRADESH MICRO, SMALL AND MEDIUM ENTERPRISES (FACILITATION OF ESTABLISHMENT AND OPERATION) ACT, 2020

(1) this act may be called the Uttar Pradesh Micro, Small and Medium Enterises (Facilitation of Establishment and Opreation) Act, 2020.

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 establishment 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 instention to establish/expand/diversify an enterprise, expressed through furnishing the information 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 defined 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 Commercial Operation means the date on which the enterprise issues the first bill of supply/invoice/tax invoice, of the goods manufactured or services rendered relating to declaration of intent furnitured 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

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 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

(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).

The following shall be the nodal agencies for the purpose of this Act :

The powers and functions of the nodal agencies shall be as follows:-

(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:-

(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 of 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. Act 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.

(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 :-

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 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.

This Act shall not be applicable on enterprises submitting Declaration of Intent to manufacture following items:-

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.

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.

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.

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.

(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:

(1) The State Government may, by notification in the Gazette, make rules to carry out the provisions of this Act.

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.