UP’s Flatted Factory Revolution: Lucknow and Ghaziabad to Get Major MSME Boost
Lucknow, 22 June 2025 | Uttar Pradesh is doubling down on a successful industrial model to empower its small businesses. Following the remarkable success of Flatted Factory Complexes in Kanpur and Agra, the UP government is now expanding this innovative scheme to two more major cities: Lucknow and Ghaziabad.
This strategic move, which has received approval from the central government, is set to provide state-of-the-art, ready-to-move-in infrastructure for Micro, Small, and Medium Enterprises (MSMEs). Construction and development work for the new projects are already underway, signaling a new era of industrial growth and opportunity in the state’s key urban centers.
First, What is a Flatted Factory Complex?
Think of it like an apartment building, but for businesses. Instead of individual houses, a Flatted Factory Complex is a multi-story building where each floor contains several pre-built workshops or small factory units.
This model is a game-changer for small entrepreneurs. They don’t need to spend huge amounts of money on buying land and constructing a building. They can simply lease a ready-made unit and start their operations quickly. It’s a “plug-and-play” solution for manufacturing.
A Proven Model of Success: Kanpur & Agra
The decision to expand wasn’t made in a vacuum. It’s based on the proven success of two pilot projects:
- Kanpur: The complex, built over an area of 15,500 square feet, houses 162 MSME units and is now fully functional and officially allotted.
- Agra: A larger facility, developed across 38,500 square feet, is home to 200 MSME shops and units and is also operating at full capacity.
These two complexes have already created thriving business ecosystems, proving that the model works effectively in Uttar Pradesh.
The Next Wave of Industrial Growth
With construction now in progress, Lucknow and Ghaziabad are set to join this industrial revolution. Here are the specifics for the new complexes:
- Ghaziabad: The complex will cover 9,734.21 square feet and will provide space for 40 shops and industrial units.
- Lucknow: This facility will span 7,901.6 square feet, offering 48 shops and units designed for MSMEs.
These new complexes are being developed with future needs in mind, ensuring that they help MSMEs lower their initial business setup costs by offering affordable, capital-investment-light spaces.
Flatted Factory Complexes: A Snapshot
| City | Status | Number of Units | Key Benefit |
|---|---|---|---|
| Kanpur | Fully Operational | 162 | Established MSME hub. |
| Agra | Fully Operational | 200 | Large-scale, successful model. |
| Ghaziabad | Construction Underway | 40 | Expanding industrial infrastructure in NCR. |
| Lucknow | Construction Underway | 48 | Boosting manufacturing in the state capital. |
Why is this Scheme a Game-Changer?
This initiative, part of the Uttar Pradesh MSME Promotion Policy introduced in 2022, is designed to solve the biggest problems that small business owners face.
- Lowers Entry Barrier: Reduces the huge upfront cost of land and construction.
- Creates Business Clusters: Puts similar businesses in one place, fostering collaboration, competition, and knowledge sharing.
- Saves Time: Entrepreneurs can start their business much faster in a ready-made unit.
- Boosts Urban Manufacturing: Allows manufacturing to happen within cities in an organized way, without causing pollution or congestion.
- Generates Jobs: Every new MSME unit creates numerous opportunities for both entrepreneurs and job seekers.
The state’s focused infrastructural push has already paved the way for over 11,126 enterprises, showcasing the massive potential of these schemes.
Frequently Asked Questions (FAQ)
Who is eligible to get a unit in these Flatted Factory Complexes?
These units are specifically designed for and allotted to Micro, Small, and Medium Enterprises (MSMEs) to help them start and grow their businesses.
How does this model help Uttar Pradesh’s economy?
By making it easier for MSMEs to start and operate, this scheme boosts manufacturing, creates thousands of jobs, increases the state’s economic output (GDP), and helps UP move closer to its goal of becoming a trillion-dollar economy.
Is this part of a larger government plan?
Yes, this is a key part of the UP MSME Promotion Policy, 2022. This policy aims to create a more favorable environment for small industries across the state through various support schemes.
Where can entrepreneurs find more information about these schemes for MSMEs?
Entrepreneurs can visit the official websites of the Uttar Pradesh government’s industrial development authorities (like GIDA for Gorakhpur region) and the Department of MSME and Export Promotion for detailed information on policies, eligibility, and the application process.
