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Maharashtra - Industrial Destination

Acquisition Of Industrial Land In India: Primary And Secondary Land Market

Reaching to a peak of one of the preferred outsourcing destination, India had travelled a long path. 80% of Europeans and US outsourcing firms ranked India as their number one outsourcing destination. However, there are many outsourcing competitors emerged for India including countries like China, Mexico, Ireland and the Philippines, but India has managed to outwit all others and loom as the top outsourcing harbour. For setting up industry primary requirement is the availability of appropriate land parcel. Industry can be set up on Leasehold (Government Owned) and Freehold (Private Owned) Land in India. Cost-saving benefit, quality of work, innovation, Communication skills ( Universal Language : English), time-zone advantages are some of the primary reasons of India being a preferred destination worldwide. Before setting up any industry, the Investors / Entrepreneurs carry out necessary research for identification of the ideal location based on various parameters. The industrial land in India can be acquired through a Primary or Secondary Market. This document highlights salient features of the Land Market and Role of ASCC Pvt. Ltd., a leading Industrial Consultants operating PAN India as a facilitator in setting your industry.

In Primary land market the Government appoints the nodal agency which acquires the land from the farmers or other people, creates the industrial infrastructure and allots the land for setting up the industries.

Secondary land market is the acquisition of land through resale/transfer of leasehold rights. These are basically developed land in the developed industrial belt. The owner of the land had acquired the land in Primary Land market but unable to set up / run the industry therefore they want to now sell the same.

The land acquisition cost by the Government is going up significantly and it is difficult to find land banks at selected locations which are mostly suitable for industrial/manufacturing projects. There is normally scarcity of land in the Primary land market specially the industrial areas which are close to the towns.

Acquistion Of Industrial Land In Maharashtra

Maharashtra is the backbone of Indian economy. If India grows at 8 % than astonishingly Maharashtra growth would be at least 10 % as it is gravitational centre of the country. In Maharashtra the industrial areas are divided into 5 Talukas, A, B, C, D and D+ areas, A Taluka is fully developed industrial area and located in or near a city, D+ Talukas are the least developed areas. C, D and D+ area normally fall in the rural areas. The cost of land is significantly high in A Talukas and the lowest in D or D+ area. In order to promote development of industrialisation in the rural areas, the Government has announced package scheme of incentives. Maximum benefits are provided to the industries which are set up in D or D+ Talukas of Maharashtra. The Government of Maharashtra has also appointed MIDC as nodal agency to facilitate industrial activities in Maharashtra.

MIDC allots the land for industries in Primary Land Market in following manner:

  • 80% of the available land is allotted directly on first come – first serve basis.
  • Remaining 20% land is allotted through E-bidding.
  • MIDC also keep the reserve land parcel for allotment of land for Mega Projects or under priority allotment to the industries which would get FDI.

The MIDC has already exhausted the entire land parcel of 80% for direct allotment in all A & B Talukas and also in most of C Talukas. However the land parcel is available for priority allotment to mega project / under FDI or through E-bidding. In other Taluka i.e. D & D+ the land parcel may be available with MIDC and the same are being allotted on first come first serve basis. In case of Primary Land Market the plot is allotted on as is where basis is. The MIDC normally allots the open land in the Primary Land Market. However, the MIDC also allots flatted galas or small plots with structure to facilitate setting up of small / micro manufacturing units.

Secondary Market is one where the acquisition is done through Resale. The acquisition has varied combinations:-

  • Open land,
  • Land with Building
  • Land with building and machinery
  • Running Industry with brand and company
  • The choices are many. Even the land cost is high in the secondary market but people still prefer to go for Secondary market due to following reasons:

  • No bureaucratic hassles to get the plot.
  • Land is normally fully developed.
  • Availability of industrial infrastructure and facilities.
  • Easy to get / transfer the compliances / consents.
  • Least interference of villagers.
  • Entrepreneurs and Investors often face difficulties to identify suitable industrial plot or industrial land from Corporations of State and Central Government Agencies for setting up manufacturing units or business ventures. Many prospective Indian and overseas entrepreneurs do not possess the required knowledge and support to reach out the concerned authorities for obtaining the relevant information about appropriate industrial land/plots as per their specific requirements. Due to this many overseas and India entrepreneurs are finding it difficult to identify industrial land or plot as per their choice in the Primary Land market. We at ASCC have thorough knowledge of Government land allotment policies and procedures thus we can help you and guide you to get industrial land directly allocated through the government nodal agencies in Primary land market.

    It is vital to note and work on detailed business dynamics (long term cost benefit analysis) and it is important to explore the secondary market (re-sale/lease transfer option) when looking/studying project viability. Secondary Market has endless options, plots are located in the developed industrial belt, industrial infrastructure is available. We at ASCC also have big data base of Industrial land parcels / industries available for resale in the secondary market in different location beside thorough knowledge on the transfer guidelines of the Government.

    We endeavour to be your Real Estate Consulting Partner to assist you with land acquisition as per your project needs and project requirement.

    We create a value in holistic manner:

      • We take a deep dive with your project and check on compliance if your unit can be set up in specific Industrial Zones/Industrial Areas.
      • We assist you with market intelligence on various parameters – research and consulting which will help you take appropriate decision to select the ideal location.
      • We can also assist you for following
        • Assistance in finding suitable site
        • Shortlisting of sites basis your project requirement
        • Negotiation with the Seller.
        • Carrying out detailed due diligence of the land parcel.
        • Legal assistance in drafting Memorandum of Understanding (MoU) between Buyer and Seller.
        • Assistance in representation of the case with MIDC/Govt. Authorities for ensuring smooth transfer process.
        • Legal – Sale Deed / Lease Deeds / Deed of Assignment for Lease.
      • Compliance Management Solution
        • Central Government Bodies for MSME / IEM
        • Environmental – State Pollution Control Bodies like MPCB
        • Factory Acts – Directorate of Industrial Safety and Health – Factory Plan Approval and Factory License
        • Fire NOC – Provisional and Final Fire NOC
        • Petroleum and Explosives Safety Permits – PESO Plan Approval, District Authority NOC, PESO License
        • Building Related Permits:
          • Town Planning (e.g. MIDC) Building Plan Approvals
          • Building Completion Certificate
          • Occupancy Certificate
          • Drainage Completion
          • Tree Plantation Certificate
        • Industrial Architectural Services
        • Water Connection Permission (Temporary for Construction, Permanent for Production/Operation)
        • Electricity Connection Permission (Temporary for Construction, Permanent for Production/Operation)

        We have team which is well qualified and some of the trained in Engineering and from premiere management institutes like Indian Institute of Management to help you assist in your dream project turning reality. We are one Stop Solution to all your industrial real estate and compliances requirement.

        You may kindly contact us for availing unmatched professional services.

        Ascent Supply Chain Consultants Private Limited,
        406 Raheja Arcade, Sector-11, CBD Belapur,
        Navi Mumbai – 400614, MH – India.
        Tel: 022-4897-4888

        Email: <a href=”mailto:email:info@ascc.in”

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