Uttar Pradesh Prime Minister Yogi Adityanath spoke with Sunita aron on the state’s increase in the business ease ranking, steps being taken to attract investment, and areas of development that still need work, among other things. Edited excerpts:
After a jump from 12th place to second in the national ranking for business ease, are you aiming for first place next year?
Why not?. We must do everything possible to get the first position. The state has the potential and we know how to work hard. Our ranking was 16th in 2016. We have reached second position and will strive to reach first position next year. UP has proven that it is the new destination for business. The Government of India has already provided a list of 301 total reforms to be implemented before the end of this year, and we are working on them. I have already held a review meeting with all the departments involved at my level and gave clear instructions. For this year, our goal is to 100% implement all prescribed reforms to consistently reach out to beneficiaries from time to time. We plan to establish a dedicated Invest UP-level feedback call center that will contact our entrepreneurs to get their feedback and resolve their complaints.
Some states are still raising questions about the methodology adopted this year in the rankings.
The Business Reform Action Plan (Brap) had listed 187 reforms and we, in one year, implemented 186 of them, distributed in multiple areas such as labor, land adjudication, registration, environmental authorizations, etc. However, our online one-stop-shop portal, Nivesh Mitra, became a game changer. From the submission of the applications and the fee, the entrepreneur can download approvals / NOs {certificates of no objection} and licenses digitally signed. It also helped ensure a transparent licensing system. In addition, 65 of the 75 districts underwent widespread reforms. The level of satisfaction of the entrepreneurs was also 75%. Much work has been done in the past three years to transform the investment climate in the state.
But this is not the first time we’ve heard of a one-stop-shop system. Successive governments had announced it. How is it different?
We are working on the implementation of reforms on the ground, with special attention to Brap 19. The evaluation has also been carried out on user feedback. We received 2.3 lakh of NOC requests of which 2.2 lakh was efficiently removed. This was made possible by the integration of about 20 departments with the online single window portal. Here’s how 186 key renovations were carried out in 20 departments in the last year.
What about poor law and order and the bureaucratic red carpet that UP is infamous for?
Where is the red carpet now? Nobody complains. In addition to the reforms, we are improving air connectivity, building highways and ensuring the resolution of complaints and grievances within a specified period. The number of penalties also dropped from 55 to 35 compared to 38 in Andhra Pradesh and 49 in Telangana, the states that came in first and third, respectively. Employers often faced problems with environmental and labor authorizations. These issues have also been addressed. Regarding law and order, the government has taken several measures for its general improvement. The police response has improved dramatically. The data shows that the majority of crime cases that are occurring are due to personal feuds or family disputes. I can only say that entrepreneurs never felt more secure than today.
The opposition parties remain critical of the government. They call it simply branding and marketing.
The Opposition is not aware of the reality of the terrain and does not want to accept the fact that the UP has done so. But the reality cannot be argued since [Brap] The classification has been made on the basis of independent comments. While some investors have experienced the efficiency of the post-reform system, it has piqued the curiosity of others. After the investment summits, the groundbreaking ceremony and the advocacy expo, entrepreneurs have now understood the potential of the state.
What regulations were changed that made the environment conducive to business?
We gave clear deadlines through the Public Service Delivery Guarantee Law for the approval of the complete application. We have eliminated the practice of pre-registration inspection under the Establishment and Commerce Act. Registration is granted within one day from the application date. These instructions were also given for labor, land, and other authorizations.
You have been meeting entrepreneurs, big and small. Are you satisfied with the reforms undertaken by the state government?
We have excellent feedback. Their confidence is high as my officers are in regular contact with investors. We have created a dedicated help desk to monitor the investment opportunities generated, in particular those that are transferred from foreign countries. As a result, we have more than 50 investment intentions that have been received from around 10 countries, including Japan, USA, UK, Canada, Germany, South Korea, etc. worth around Rs 7,000 crore. These include Ikea, Yazaki, Miyachi Corp, AB Maurie, Britannia, etc.
Memorandums of Understanding are often signed at investment summits; they rarely start rolling.
Of the 1,045 MoUs signed during the UP Investor Summit, 152 MoUs (with an investment intention of Rs 49,147 crore) have started commercial operations and 175 MoUs (with an investment intention of Rs 55,055 crore) are in various active implementation phases. Four hundred and sixty-one MoU (with an investment intention of Rs.93,474 crore) have been in active monitoring position in various departments of the UP.
Do you think the government still needs to be more proactive to guarantee time-bound authorizations?
The delivery of licenses / NOCs within a specified timeframe is the most critical step in facilitating business activity. Understanding this critical importance, we have taken several initiatives in this regard, including clearly prompting departments to make one-time inquiries on requests submitted by entrepreneurs within seven days of receiving the request.
He wants to make Uttar Pradesh a trillion dollar economy in the next five years. How do you propose to do it?
The state government is emphasizing Industry 4.0 and rejuvenating its investment promotion strategy. For this, beyond the traditional sectors such as food processing, dairy, textiles, ESDM & IT {design and manufacture of electronic systems and information technology}, the state has identified new focus sectors such as pharmaceuticals, with a focus revamped in bulk drugs and medical device manufacturing, mobility of electric vehicles to drive demand for electric vehicles in the state, warehousing and logistics, defense and aerospace manufacturing, data center, etc. In addition, rapid expansion of world-class infrastructure via expressways – Poorvanchal / Bundelkhand, new industrial parks are underway on the anvil.
In your opinion, what are the weak areas that demand attention and focus?
The main challenges for rapid industrialization are the creation of a land bank and adaptation to modern techniques for good governance. All available industrial land from all industrial authorities has been updated on the GIS portal {Geographic Information System} and is available on the Nivesh Mitra one-stop-shop portal. Other reforms include FAR {land area ratio} increased to 3.5 for industrial use, which is one of the highest in India, allowing for the leasing of agricultural land for solar energy projects, the award of Fast track land in 15 days for mega investments, which allows mixed use of land for the development of Integrated Industrial Municipalities, etc. Through Invest UP, we are now prepared to provide full investment lifecycle support to investors.
Covid-19 has had an adverse impact on the state’s finances. What is your action plan to mobilize funds to get the state back on the development path?
As the state government has turned to generating new leads after Covid-19, not only has the scope of investment facilitation expanded, but the focus on faster implementation of investment has also gained importance. The state government is now promoting the rapid implementation of investments in the state.
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