The Micro, Small and Medium Enterprises (MSME) department in India has suspended online allocation of land to industries since late June 2024, citing 'technical glitches' in the portal. The department is currently revamping the entire system and portal to create a seamless and transparent land allocation process, which is expected to be launched by early 2025. The new portal will have advanced features and verticals for various permissions and approvals. This delay has deferred the expansion and investment plans of numerous industries, leading to industry associations calling for the government to prioritize the launch of the new portal.
The Micro, Small and Medium Enterprises (MSME) department is unlikely to commence online allocation of land to industries in 2024, and fresh online allotment is anticipated to begin not before early 2025. This delay is because the department is currently revamping the portal and digitizing the permission mechanism. The department has suspended online allocation of land since late June, citing 'technical glitches' in the portal.
The entire system and portal is being overhauled to create a seamless and transparent system of land allocation. The allocation of land through the portal is temporarily suspended, and the new system is to be activated by early 2025. MSME Commissioner Dr. Navneet Mohan Kothari said that in the new system, they are planning to synchronize all basic and advanced procedures for an enhanced interface.
The new portal is envisaged to have all advanced features and verticals for various permissions and approvals, according to officials.
The MSME department, in a letter to all the District Industrial Centers (DICs) dated July 31, 2024, directed them to cancel applications received from industries for undeveloped land allotment in July, as the process could not be completed seamlessly due to technical glitches.
The department has instructed its regional offices in every district to collate information about land, industries, and other investment-related data. Officials from the regional offices at DICs said they have been asked to submit information in 36 columns to the department.
The MSME department's decision to overhaul its land allocation system has faced significant backlash from the industry, as it has stalled the expansion and investment plans of many businesses.
However, the department seems resolute in its commitment to creating a more efficient and transparent process, even if it means a temporary suspension of new allotments. As the industry eagerly awaits the launch of the new portal in early 2025, the state government will need to carefully balance the needs of the MSME sector with the department's efforts to modernize its land allocation system.
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