Uttar Pradesh Invites Plywood Industry Investments

July 14, 2026
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Thanks to the commendable efforts of Mr. Ashok Agarwal, President of the Uttar Pradesh Plywood Manufacturers Welfare Association, the Government of Uttar Pradesh invited plywood manufacturers from Punjab, Haryana, and Delhi to explore investment opportunities in the state.

A delegation of industry representatives visited Lucknow to witness the high-moisture core plywood manufacturing technology at the Green Ply Industries plant in Sandila. Prior to the factory visit, an interactive meeting was organized with plywood manufacturers at the Invest UP office in PICUP Bhawan.

During the meeting, industry representatives expressed their strong interest in investing in Uttar Pradesh before Mr. Vijay Kiran Anand, CEO of Invest UP. At the same time, they highlighted several concerns relating to existing and prospective investments so that appropriate and timely solutions could be developed. Some of the major issues and suggestions raised during the discussion were:

Uttar Pradesh has formulated sector-specific policies for several industries. However, no dedicated policy exists for wood-based industries such as plywood and panel products, despite the sector’s significant growth potential.
Likewise, no comprehensive policy framework has been developed to promote agroforestry, which is essential for ensuring a sustainable supply of raw material for the plywood industry.

There is no enabling policy to help industries and farmers benefit from carbon credit schemes.
The government should consider framing a policy to lease degraded and Panchayat lands to industries on a long-term basis for promoting agroforestry plantations.

As per the Wood-Based Industries (Establishment and Regulation) Guidelines, 2016, issued by the Ministry of Environment, Forest and Climate Change (MoEFCC), industries using timber obtained from exempted agroforestry species should be exempted from licensing requirements.
The policy of offering industrial land only on a leasehold basis, instead of freehold ownership, creates difficulties for industries in obtaining bank finance.

The documentation process for obtaining government subsidies is lengthy and cumbersome.
Instead of providing subsidies, the state government should consider directly facilitating the availability of essential fire safety equipment, pollution-control infrastructure, and the required No Objection Certificates (NOCs) for industrial units.

During the meeting, Mr. Naresh Tiwari, President of the All India Plywood Manufacturers Association (AIPMA), and Mr. Inderjit Sohel, President of the Punjab Plywood Manufacturers Association, explained in detail the various incentives and facilities currently being provided by the Punjab Government to the plywood industry.

Mr. Ajay Garg, Director of M3 Group, and Mr. Manoj Bansal, Director of Sky Decor, also shared their views on the opportunities and future potential of establishing plywood manufacturing units in Uttar Pradesh.

Dr. M. P. Singh, The Director General of FIPPI (Federation of Indian Plywood & Panel Industry) assured that the federation would actively cooperate with the state government in consolidating these recommendations into a comprehensive policy framework.Responding positively to the industry’s suggestions, Mr. Deepak Kumar, Infrastructure and Industrial Development Commissioner of Uttar Pradesh, assured the delegation that the state government would soon introduce a dedicated Wood-Based Industries and Agroforestry Policy. He stated that the government is both committed and eager to create a competitive industrial ecosystem for the sector. He further announced that a special committee would soon be constituted to formulate the new policy, and industry representatives would be included in the policy-making process to ensure that the industry’s practical concerns are adequately addressed.