Lucknow: The UP cabinet has approved the Plug-and-Play Industrial Sheds Scheme 2026 under the Design-Build-Finance-Operate-Transfer (DBFOT) model through public-private partnership to speed up industrialisation, boost manufacturing, and support the state’s $1 trillion GSDP target.The scheme addresses delays under the current lease-and-build system, where entrepreneurs must invest heavily in buildings and basic infrastructure such as roads, drainage, STP or ETP, and firefighting systems, often pushing production back by 18 to 36 months. Under the new policy, pre-built industrial sheds with essential utilities will be made available so that industries, including MSMEs, can begin operations quickly. The move is expected to cut costs, shorten project timelines, and generate jobs. Priority sectors include engineering, electrical and electronics, EV components, auto ancillaries, textiles and garments, food processing, plastic packaging, defence and aerospace, and ESDM. Authorities may also create sector-specific facilities. Land ownership will remain with the authority, while private developers will design, finance, build, operate, and maintain projects for 45 years, extendable by up to 15 years. A minimum project size of 10 acres has been set, with 15 to 20 acres preferred for pilot projects. The scheme offers no budgetary support, VGF, or govt guarantee.
