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MIDC Land Allotment under Foreign Direct Investment (FDI)

Foreign direct investment (FDI) is a major source of non-debt financial resource for the economic development of any country. India has become the most attractive emerging market for global partners (GP) investment due to government’s initiatives in relaxing FDI norms across sectors due to various relaxations.

FDI Routes in India

Foreign direct investments (FDI) can be made by opening of a subsidiary or associate company in a foreign country or acquiring a controlling interest in an existing foreign company (minimum 10% ownership stake in a foreign-based company, it is flexible in some special cases in which firm can be established with less than 10% of the company’s voting shares) or by means of a merger or joint venture with a foreign company. There are two routes by which India gets FDI:-

Automatic routeFDI is allowed without prior approval by Government or Reserve Bank of India. But the RBI needs to be informed about the amount of investment within a stipulated time period.

Government route: The application needs to be made through Foreign Investment Facilitation Portal, processing is done by the concerned Ministries/Departments followed by decision of the Government under the extent FDI policy.

Department of Industrial Policy has set FDI norms for various Industrial sectors, their Caping, Routes as well as authorised approval departments. To known the detailed FDI policy, Click here.

Maharashtra : FDI Attraction

Maharashtra alone contributes 27% of total exports in India. Being the biggest contributor to India’s GDP 15%, Maharashtra has always remained in the forefront of country’s economic development.  The state attracts the highest FDI in the country;  30 percent of the total FDI inflow. According to the DIPP, cumulative FDI inflows in the state of Maharashtra during April 2000 to March 2016 stood US$ 82.62 Billion. The state government has approved 18,709 industrial proposals during 1991-92 to 2014-15.

Inline with the initiative of ” Make in India”  Maharashtra Government has launched  a scheme “Make in Maharashtra” where Maharashtra Government is providing preferential allotment of Land to Foreign Companies under FDI category & special incentives are given to the company if units are set in D & D+ zones.

One of the government organisations supporting Maharashtra’s exemplary performance & be a backbone of Indian economy is the project MIDC (Maharashtra Industrial Development Corporation) , established in 1962 with a prime objective of Prosperity to all through Industrialization.  From its inception, the corporation is continuously working on the policies with would result in Economic lift of the country be it through domestic Or International market. Many Incentive policies are timely introduced by the corporation. Progressive Government taking measures to facilitate industries in generating revenue is what the state is working at.

MIDC Criteria for Allotment of Plot under FDI

MIDC allots plots under FDI Category. The conditions and quantum of minimum FDI for qualification as FDI units for priority allotment of land is:

  1. Remittance Certificate from RBI is must before Allotment & at various stages of Investment.
  2. Minimum shareholding of the foreign entity should be 51%.
  3. The minimum paid up equity shall not be less than 25% of the project cost.
  4. The minimum investment for A, B & C area should be Rs. 20 Crs. or USD 4 million whichever is more.
  5. The minimum investment for other areas (D, D+, NID & Naxal affected etc.) should be Rs. 10 Crs. or USD 2 million whichever is more.
  6. For A, B & C areas the land rate per 1000 Sq.mtrs is Rs. 1 Cr. & other areas the land rate per 2000 Sq.mtrs is Rs. 1 Cr.
  7. 100% of the investment should come within 2 years from the date of possession with an extension of a year if the delay is beyond control.The entire investment may be brought up front or in different stages as under:
    1. Before Allotment of land: Minimum to extent of land cost.
    2. Before approval of Building plan: Minimum 25% of proposed FDI.
    3. Before granting of OC/BCC: Minimum 50% of proposed FDI.
    4. Before commencement of project: 100% of proposed FDI.
    5. Land is allotted on priority bases in FDI, in case of default the penalty would be 25% of prevailing land premium per year after the expiry of period. Transfer of open plot will not be allotted, it will have to be surrendered to MIDC.

Classification of Industrial Areas

Maharashtra Industrial areas are divided into 5 zones A,B,C,D & D+  depending on the availability of Industrial Infrastructure.



A:Developed areas

Mumbai, Pune, etc.

B:Less developed than A

Alibagh, Dhanu, Nashik, etc.

C:Less Developed thanB

Bhivandi, Ratnagiri, Baramati, etc.

D:Less developed than C

Aurangabad, Satara, Nagpur, etc

D+ :Less developed than D

Pithan, Barshi, Kagal, etc.

No Industries Exist

Gadchiroli, Hingoli, etc.

Areas affected by Naxalism

Gondia, Kinvat, Chandrapur, etc

ASCC, an Industrial brokers can assist in getting Direct Allotment under FDI , you can reach us at :

ASCC, Ascent Supply Chain Consultants Private Limited,
406 Raheja Arcade, Sector-11,
CBD Belapur,
Navi Mumbai – 400614, MH, India
Tel: 022-489-74888
E-Mail :


  1. Syed wasim

    how can you help us in land allotment from midc?

    • Dear Sir
      Refer your requirement.
      I have emailed the requirement form to be filled from your end to enable us to understand the requirement better and cater the properties meeting your requirement.
      Assuring unmatched professional services.

      Team ASCC

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