Uttar Pradesh State Industrial Development Authority (UPSIDA) has taken yet another step towards facilitating the policy of Ease of Doing Business for its allottees and potential investors. The UPSIDA in its board meeting under the chairmanship of Additional Chief Secretary (IIDD) on June 22 took a decision on revising the time extension fee for all the allottees.

As per the UPSIDAs existing policy, the allottees that do not set up their unit and commence production within stipulated time are required to pay a time extension fee on the allotted plots computed on quarterly basis.

In order to provide relief to the allottees, the UPSIDA Board decided to reduce the basis of computing time extension fee from existing three months to one month, as a result of which the allottees will be able to pay a minimum one month time extension fee instead of three months, if their unit starts production within one month.

Earlier, the minimum time extension period was three months irrespective of whether the unit started production within one month or two months. The amendment has been made to ensure that those allottees who are ready to start production or have already started production are not required to pay the time extension fee for more than the required time.

This step has been appreciated by all allottees as it now gives them a huge relief on monetary fronts. Apart from this, in case UPSIDA is not able to transfer possession of the allotted land to the allottee within prescribed time, the time extension fee calculation shall be done from the actual date when the allottee gets the possession.