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Allotment of New Plot for Storage/ Warehousing/Cold Storage activity and Premium for additional 0.5 FSI in MIDC

Allotment of New MIDC Plots for Storage / Logistics / Warehousing / Cold Storage Activity in MIDC and Premium for Additional FSI

MIDC vide its Circular No. MIDC/CP/B65423/2017 dated 09 May, 2017 has issued a notification for allotment of new plots for storage/logistics/warehousing activity. The said circular also mentioned the charges to be paid to MIDC at industrial rate for new allotment and additional FSI of 0.5 for storage/logistics/warehousing activity.

Snippet of the MIDC Circular

As per guidelines of allotment of plots for storage/warehousing activities issued vide circular under reference no. 2, plots for warehouses and godowns in MIDC’s industrial area were being allotted at the commercial rate or by way of auction. In this regard, it was observed that as per MIDC’s revised DCR-2009, the storage activity has been included in the principal land use, similar to IT, BT and NT use and hence, it was felt necessary to issue revised guidelines. The issue was discussed at the 367th meeting of MIDC Board and resolution no. 5592 was passed. Accordingly, following guidelines are issued in the subject atter, vide circular under reference no. 5

1) A separate zone for storage / logistics / warehousing activity will be earmarked while approving Master Plan of the industrial area for new ndustrial area developed by MIDC.

2) In case of an existing / already developed industrial area, storage / logistics / warehousing activities as well as industrial activities may be allowed, wherein a maximum of 15 % of the total area under industrial plots will be allowed to be put to storage / logistics / warehousing activity. All such proposals will be submitted to the Head Office for approval through Planning Department. Remarks of Fire Department will be taken while processing such proposals, if necessary.

3) Plots for storage / logistics / warehousing activity will be allotted at industrial rate.

While granting additional 0.5 FSI on the plots allotted for storage / logistics / warehousing activity, it has been noticed that premium for additional 0.5 FSI is being charged at commercial rate, which is not in conformity with the intent of the circular, wherein storage / logistics / warehousing activity is considered as an industrial activity. Therefore, the premium for additional 0.5 FSI for storage / logistics / warehousing / cold storage activity should be charged as per rate of premium for industrial use (i.e. 25 % of the prevailing industrial rate of MIDC in that industrial area).

It is hence clarified that while approving additional 0.5 FSI on the plots allotted for storage / logistics / warehousing / cold storage activity, the rate of premium applicable will be 25% of the prevailing industrial rate of MIDC in that industrial area.

If you wish to avail services of Professional MIDC Advisors and/or Consultants, then do get in touch with us at services@ascconline.com or reach us 022-489-74888.

2 Comments

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