Yogi Adityanath Cabinet Approves ₹1000 Crore Logistics Park, Industrial Sheds Scheme

Lucknow: In the cabinet meeting chaired by Chief Minister Yogi Adityanath, approval has been granted to the rules, conditions and brochure for the establishment of a Multimodal Logistics Park (MMLP) on 174.12 acres of land in Greater Noida under the 'Uttar Pradesh Multi Modal Logistics Park Policy-2024'.

Under the state government policy, Multimodal Logistics Park projects with a minimum investment of ₹1000 crore will be incentivized. Such projects will be provided 30% front-end land subsidy, which will be admissible only on land allotted on lease by the government or industrial development authorities.

The High Level Empowered Committee (HLEC) had given in-principle approval to the proposal to provide 30% land subsidy to the selected bidder based on the recommendations of the Greater Noida Industrial Development Authority (GNIDA) Board, evaluation committee and the Industrial Development Department. Accordingly, the cabinet has given final approval.

This Multimodal Logistics Park will be established on a plot of approximately 174.12 acres (7,04,664 square meters) located in Sector Kappa-02 (earlier Kappa-11) by the Greater Noida Industrial Development Authority. The rules and conditions of the prepared plan have also been approved by the High Level Empowered Committee.

An e-auction model will be adopted for allotment of the plot. Partnership firms registered in India, LLPs, private or public limited companies will be eligible to participate, while consortiums or joint ventures will not be allowed to participate in the tender.

The reserve price of the plot has been fixed at ₹11,000 per square meter. The 30% front-end land subsidy will be calculated on the basis of this reserve price, as provided in the policy. The successful bidder will have to complete the project within 7 years, out of which at least 40% of the work must be completed in the first 3 years.

In special circumstances, an additional time of up to 2 years may be granted. The allottee will not be allowed to exit the project before full operationalization and fulfilment of the committed investment, ensuring seriousness and timely execution of the project.

Cabinet approves Plug-and-Play Industrial Sheds Scheme-2026

The Yogi Cabinet has approved the “Plug-and-Play Industrial Sheds Scheme-2026” based on the Design Build Finance Operate Transfer (DBFOT) model under Public Private Partnership (PPP) in Uttar Pradesh. The objective is to accelerate industrialization in line with the 1 trillion dollar GSDP target, increase manufacturing capacity and ensure quick establishment of industries.

Under the existing lease-and-build model, entrepreneurs have to make heavy investments in buildings, internal roads, drainage, STP or ETP and firefighting facilities after acquiring land, which results in a delay of 18 to 36 months in starting production.

Under this scheme, pre-built industrial sheds equipped with utilities will be provided, enabling industries including MSMEs to get immediately operational infrastructure. This will reduce costs, enable faster start of production and increase employment generation.

The scheme gives priority to sectors such as mild engineering, electrical and electronics, EV components, auto ancillary industries, textile and garments, food processing, plastic packaging, defence and aerospace and ESDM. Industrial development authorities will also provide sector-specific facilities as required.

Under this scheme, land ownership will remain with the authority, while the private developer will undertake design, financing, construction, operation and maintenance for a period of 45 years, extendable up to a maximum of 15 years, and will provide sheds to industries on sub-lease. A minimum land area of 10 acres has been fixed, with preference for 15 to 20 acres for pilot projects.

Minimum Development Obligation (MDO) will be fixed to prevent unnecessary land hoarding. The scheme is fully based on financial discipline, with no budgetary support, VGF or government guarantee.

The authority will earn revenue through premium, annual fees and revenue sharing. After completion of the project period, all assets will be transferred back to the authority in usable condition.