UP tweaks MSME policy, bank guarantee now mandatory
The Uttar Pradesh government has tweaked its Micro, Small and Medium Enterprises (MSME) policy, making it mandatory for private investors to provide bank guarantee to avail stamp duty exemption.
According to the notification issued by additional chief secretary, MSME, Amit Mohan Prasad, a bank guarantee equivalent to the stamp duty exemption will be deposited and released after the unit begins commercial production.
The district magistrate or the general manager of the district industries centre will confirm the commencement of production, it says.
The state government has made a provision for 100 per cent stamp duty exemption on purchase of land for MSME industrial parks, estates and flatted factory complex units spread over 10 acres of land or more by the private sector.