State Government higher the FSI to attract the private players for development of industrial land parcels

By Realty Quarter Bureau

The state government today announced incentives to attract private players to acquire and develop the small parcels of land under the Integrated Industrial Area Policy. The state cabinet approved several changes to the 2013 policy to make it more lucrative and attractive.

The FSI (Floor Space Index) for such projects has been doubled to 2. A 50% stamp duty relaxation has been offered and government land can be acquired to make it a contiguous land parcel. The policy was originally prepared for small and medium enterprises to function in planned industrial areas.

Officials said the policy has not been getting a sufficient response, compared to other states. Gujarat, Tamil Nadu and Karnataka are getting a better response as their concessions are better.

The requirement to set up an integrated industrial area has been reduced from 40 hectares to 20 hectares considering difficulty in acquiring land and increasing unavailability of land in the state.

The areas will get open access to power and will be covered under provisions of the Open Access Regulation, 2013. Under the Act, customers seeking electricity in excess of one megawatt can get additional power from the energy provider through free access.

The state government has allowed the private player to retain 80% of the total area as industrial and 20% for other purposes; earlier it was 60% and 40% respectively.

The policy focuses on promotion of micro, small, medium scale (MSME) enterprises in the state.

The state government has allowed Khed special economic zone to now be developed into an integrated industrial area. Last week, the state cabinet had allowed Navi Mumbai special economic zone to be developed as an industrial city.