FSI NORMS, TIME LINE, EXTENSION OF TIME LIMIT, NON UTILISATION CHARGES & OBTAINING BUILDING COMPLETION CERTIFICATE (BCC)
Maharashtra Industrial Development Corporation (MIDC) is a lead entity for development of Industrial Area in Maharashtra. With the aim of developing industrial areas the MIDC has been acquiring land from the farmers, developing infrastructure and allot the land on 95 years of lease to the firms / companies for their respective activities.
MIDC is an agency responsible for granting land in Maharashtra and setting the policies for the optimum utilisation of the available resources as well as modifying the set policies for the betterment of Industrialisation.
Floor Space Index( FSI) or Floor Area Ratio (FAR): FSI is the ratio between the total built-up area and the size of plot. It can be expressed in % or number. In MIDC Maharashtra it is called as FSI and expressed in number. i.e. 1.0 is termed as 100%. The basic permissible Floor Space Index (FSI) in Maharashtra is 1.0. The additional FSI can be procured on the payment of additional premium
According to earlier guidelines of the MIDC the plot holders were required to use minimum 10% of the FSI which was revised to 20% in year 2012 and subsequently it was enhanced to 40% in year 2019. The plot holders have also been allowed to develop the plots in a phased a manner. But they have to obtain Building Completion Certificate (BCC) by consuming minimum 40% of the FSI according to the current guideline. They are also required to start the activity within the stipulated time. Recently, the MIDC has granted concession to certain categories of the industries who need more open space, therefore, cannot consume 40% of the FSI.
FSI ALLOWED ON MIDC PLOTS
As per the CDCPR dated 13th July 2023, Clause No 5, Sub clause 5.5, Page No. 77, Permissible FSI for all types of plots (viz. Industrial, commercial or residential) is 1:1. Additional FSI is available depending on the Road Width in front of the Plot which is as under:
| Sr.No. | Road Width in Mtrs. | Basic FSI | Additional FSI on premium | Maximum Permissible FSI |
| 1 | Below 9 m | 1 | NA | 1.00 |
| 2 | 9 m & above but below 12 m | 1 | 1.00 | 2.00 |
| 3 | 12 m & above but below 15 m | 1 | 1.25 | 2.25 |
| 4 | 15 m & above but below 24 m | 1 | 1.50 | 2.50 |
| 5 | 24 m & above but below 30 m | 1 | 1.50 | 2.75 |
| 6 | 30 m & above | 1 | 2.00 | 3.00 |
Additional FSI can be purchased by paying premium as given below:-
| Sr. No. | Type of Land Use | Applicable Premium (of the Prevailing MIDC Rate) |
| 1 | Industrial | 25% |
| 2 | Commercial | 50% |
| 3 | Other Use | 35% |
Information Technology / IT-enabled Services (IT/ITeS) are classified as Industrial Activities under the applicable planning regulations. However, the FSI norms applicable to IT Parks differ from those applicable to conventional industrial developments. The Government of Maharashtra laid down a new policy for Information Technology and Information Technology Enabled Services (IT / ITES) vide Resolution No.ITP-2021/CR-170/Ind-2, Dated 27.06.2023. Max FSI available to IT / ITES will be as under:
| Sr. No. | Minimum Road Width | Maximum Permissible FSI Greater Mumbai Region |
Maximum Permissible FSI Rest of Maharashtra |
| 1 | 12 m | Up to 3 | Up to 3 |
| 2 | 18 m | Up to 4 | Up to 3.5 |
| 3 | 27 m | Up to 5 | Up to 4 |
(Ref Clause No. 8.1.1 page no 86, IT/ITeS Policy)
FSI Norms and Premium for Additional FSI for IT Parks: For all Public and Private Information Technology Parks / AVGC Parks, additional FSI shall be admissible on payment of a premium equivalent to 50% of the prevailing premium rate. This premium shall be applicable throughout the State of Maharashtra, excluding the regions of Vidarbha, Marathwada, Dhule, Nandurbar, Ratnagiri, and Sindhudurg.
MIDC POLICY ON UTILISATION OF FSI
According to earlier guidelines of the MIDC the allottee of the MIDC land were required to use minimum 10% of the FSI which was subsequently revised to 20% in year 2012 and then to 40% in year 2019.
Revision of Minimum Utilization of FSI from 10 to 20 % by MIDC vide Circular No. 152 dated 17 April 2012
This circular was superseded by MIDC Circular No. C5579 dated 21st June 2019.
Revision of Minimum Utilization of FSI from 20 to 40 % MIDC Circular No. C-05579 dated 21 June 2019
The Salient features of this circular are as under:-
- Minimum utilization of the FSI was enhanced from 20% to 40%
- Plot holder who has obtained BCC for less than 40% should utilised minimum 40% FSI within 2 years from the date of issuance of this circular.
- Non Utilization chares @ rate of 10% per annum will be applicable till the issuance of BCC for minimum 40% FSI.
- Non Utilization charges are applicable for 2 year after the completion of 2 years development period as per this circular.
- If the plot holder is unable to utilise minimum 40% FSI within 2 years from issuance of this circular and completion of extension period of 2 years, in that case No further extension will be granted and MIDC will initiate the process for taking over the unutilised plot after considering the FSI used on plot as per Section 42(1) (A) of MIDC Act 1961.
- New Plots allotted henceforth will have to utilise minimum 40% FSI within stipulated time period and MIDC would mention the same in Offer Letter, Allotment Letter and Agreement to Lease.
- This circular is not applicable to plot allotted for Mega Projects where development is done in a phased manner and effective steps for development have been taken by the company.
- Units which require more open space for their activity would be exempted from the applicability of this circular subject to taking the remarks from Technical Advisor and planning department and approval of CEO.
- Regional Officer within 1 month from the date of issuance of this circular shall carry out survey and issue the notice to those plot holders who have utilised less than 40% FSI.
- Clause for utilisation of 40% FSI should be mentioned in the Agreement to Lease where execution of Agreement to Lease is pending.
Exemption to Plot Holders who have taken BCC prior to 21st June 19 vide MIDC Circular No. D-86653 dated 27 Nov 2019
Various Industrial Associations represented to MIDC and expressed their genuine concerns and difficulties due to issuance of circular dated 21st June 2019. The MIDC has therefore revised its circular dated 21st June 2019 and temporarily exempted the Plot holders who have taken the BCC before 21 June 2019 and have gone into production.
Exemption on Utilisation of 40% FSI to Certain Type of Industries vide MIDC Circular No.P519118/2025 dated 19th September 2025 and MIDC Circular No. P608659/2026 dated 07th January 2026.
The following types of industries are permitted to have minimum FSI usage as under:
| Sr. No. | Category of Industries | Requirement of Minimum FSI |
| 1 | Truck Terminus, Weigh Bridges | 5% |
| 2 | Petroleum Company, Gas Station, Fuel Station | 15% |
| 3 | Special Chemical Industries & Unit requiring PESO buffer | 15% |
| 4 | Oxygen Plant | 20% |
| 5 | Asphalt Plants, Crushers | 25% |
| 6 | Dall Mills, Oil Mills(Cotton Seeds/ Soybeans) | 25% |
| 7 | Agriculture Product Units | 25% |
| 8 | Railway Work and Vehicle Body Building | 25% |
| 9 | Fabrication Units | 30% |
| 10 | Manufacturing of Concrete Blocks, Cement Products, RMC Plants, Tiles | 30% |
For any industry category not mentioned in the above table, the rules and regulation of MIDC Circular No. C05579 dated 21st June 2019 will be applicable
DEVELOPMENT PERIOD – TIME LINE
As per MIDC circular dated 17th August 2004, the time period for obtaining approvals, construction & obtaining BCC for the plot size up to 20,000 sq.mtrs was as under:
- A & B MIDC Industrial Zones was 3 years.
- C MIDC Industrial Zones 4 years.
- D & D+ MIDC Industrial Zones was 5 years.
MIDC vide its Circular No. C05008 dated 21st June 2019 MIDC has revised the development period as under
- A & B Industrial Zones is 2 years.
- C, D & D+ MIDC Industrial Zones is 3 years.
Further, the MIDC vide its Circular No. B00192 dated 12th May 2023 has allowed the construction to be done in a phased manner (20% + 20%) to cater for minimum utilisation of 40% FSI:
| Sr.No | Category | Development Period | 40% Floor Space Index (FSI) |
| A | Online direct allotment and E-bidding allotment | ||
| 1 | “A” and “B” (Total 5 years) |
First 3 years | 20 % |
| Next 2 years | 20 % | ||
| 2 | “C” (Total 6 years) |
First 4 years | 20 % |
| Next 2 years | 20 % | ||
| 3 | “D” and “D+” (Total 7 years) |
First 5 years | 20 % |
| Next 2 years | 20 % | ||
| B | For plots allotted under priority and for industrial expansion category. | ||
| 1 | “A”, “B”, “C”, “D” and “D+” (Total 4 years for all categories) |
First 2 years | 20 % |
| Next 2 years | 20 % | ||
| C | For plots allotted on a priority for projects with foreign investments. | ||
| 1 | “A” and “B” (Total 5 years) |
First 3 years | 20 % |
| Next 2 years | 20 % | ||
| 2 | “C”, “D” and “D+” (Total 6 years) |
First 4 years | 20 % |
| Next 2 years | 20 % | ||
The unit also must go into production.
Plot holders must obtain a Building Completion Certificate (BCC) for at least 20% of the Floor Space Index (FSI) within the first development period failing which extension of time limit will have to be obtained on payment of additional fee as per the prevailing MIDC norms. It is also mandatory for the plot holders to go into production within the development period prescribed above.
NON UTILISATION CHARGES
MIDC Circular No. P-467399 dated 30th May 2025 extended the period for utilization of minimum 40% FSI (Regarding Non Utilization charges)
Pursuant to the Hon’ble High Court order dated 24 April 2024 (WP No. 316/2024) the MIDC issued Circular No. P-467399 dated 30 May 2025, clarifying the levy of Non-Utilization Charges (NUC) for industrial plots.
The clarification applies only to plot holders who have obtained Building Completion Certificate (BCC) after 21 June 2019 and have utilized less than 40% of permissible FSI. The Plot holders who are still within their original or extended development period are not liable to pay Non-Utilization Charges.
If BCC is obtained for less than 40% construction, Non-Utilization Charges is applicable only on the vacant area, excluding the built up area mentioned BCC.
The deadline for achieving 40% FSI utilization was extended up to 30 June 2025, with Non-Utilization Charges applicable at 10% per annum.
MIDC Circular No. P-561819 dated 04th November 2025 further extended the period for utilization of minimum 40% FSI (Regarding Non Utilization charges)
Now, as per the revised MIDC circulars, the time limit to complete minimum 40% FSI utilization has been further extended from 01 July 2025 to 31 December 2026, with Non-Utilization Charges payable at 10% per annum. MIDC has also clearly mentioned that no further extension will be granted after 31 December 2026.
Extension to Time Limit for Development of Plots
Extension charges on MIDC plots are levied by the Maharashtra Industrial Development Corporation (MIDC) when plot holders fail to develop their allotted plots within the given timeframe. These charges serve as a deterrent to prevent delays in land development for industrial purposes. Previously, if a plot holder failed to utilize the minimum required Floor Space Index (FSI) and obtain a Building Completion Certificate within the allotted period, MIDC imposed an annual extension fee of 5% of the prevailing plot rate. However, despite these charges, many plot holders delayed development, prompting MIDC to revise its policy. The revised policy aims to further enforce compliance with development timelines, ensuring optimal use of industrial land and preventing prolonged delays in plot development.
Enhancement of Time Extension Fees by MIDC Circular No. A71222 dated 06.03.2013 and Circular No. B25785 29.04.2014.
- Extension Charges for Normal Plots for A, B, and C regions: The first extension at a additional charge of 25% and the second extension at 40% of prevailing MIDC Rate. For subsequent extension the charges would be 5% of the prevailing MIDC rates.
- Extension Charges for Normal Plots for D & D+ regions: 10% for First and Second Extension. For subsequent extension the charges would be 5% of the prevailing MIDC rates.
- Extension Charges for the Plots Allotted under expansion and priority: First extension would be 25% and second extension would be 50%. of the prevailing MIDC Rate. (For all the regions). For subsequent extension the charges would be 5% of the prevailing MIDC rates.
- Extension Fee Collection from Plot Holders : When collecting extension fees from a plot holder, if the required extension fee exceeds the current value of the plot, the lower amount between the two should be charged. The plot’s value is to be determined based on the current MIDC Rate, with an additional 10%. Plus any applicable road width charges must be included as part of the extension fees payable by the plot holder.
- The MIDC vide its Circulars No.P209217 dated 04-07-2025 delegated the powers to Regional Officer for granting paid time extension to the plot holders and collect the charges.
Obtaining Plan Approval & Building Competition Certificate (BCC) for MIDC Plots
According to MIDC norm, the plot holders have to develop their plot and obtain Building Completion Certificate (BCC) within the stipulated time line, Building Completion Certificate also contains Draining, Plumbing, Electrical and Tree Plantation Certificate. The application for BCC is to be made to SPAQ only after the receipt of Final Fire NOC. The plot holder can start the Industrial activity only after the receipt of BCC. Special Planning Authority (SPA) of the MIDC in each industrial area is the authority to approve the development plans, monitor the construction, and issues the BCC after verification of the construction. The BCC also mentions details regarding the Available FSI, Utilized FSI and Balance FSI.
MIDC Circular No.B88123 dated 07 June 2019 MIDC- Approval of Building Plan within One Year from Possession:
- Building plan approval for newly allotted plot should be obtained within one year from the dated of Possession of plot. The MIDC will mention this condition in all future Agreement to Lease.
- Plot holders who have already executed the Agreement to Lease but have not obtained the Building plan approval within one year of possession of plot, they need to obtain it within six months. Revised Agreement to Lease should be executed with incorporating this condition.
- Plot holders who didn’t take the building plan approval within 1 year or 6 months as mentioned above or those who have started the production on the plot after doing the construction without obtaining the building plan approval shall be liable to pay additional fee @ 5% P.A. on monthly basis till building plan approval is obtain.
- No extension for approval of building plans shall be given after completion of development period.
Related Articles / Blogs
We recommend you to go through following blogs written by ASCC to get the holistic view on FSI of Industrial Plot.
| Sr.No | Article | Article Link |
| 1 | Additional FSI upto 0.5 for MIDC Areas(Year 2016) | Click here |
| 2 | Floor Space Index ( FSI ) / Floor Area Ratio ( FAR ) IN MAHARASHTRA (Year 2018) | Click here |
| 3 | Development of MIDC plots by utilization of minimum 40% FSI (Year 2020) | Click here |
| 4 | Revision of Development Period & Utilization of FSI in MIDC Plots (Year 2023) | Click here |
Contact Us
Ascent Supply Chain Consultants Private Limited (ASCC),
406 Raheja Arcade, Sector-11, CBD Belapur,
Navi Mumbai – 400614, MH – India.
Tel: 022-4897-4888
Email: info@ascc.in
Disclaimer
Our company has neither been appointed nor authorised by MIDC to make this blog. However, we have done in-depth study of various MIDC circulars and provided information on this blog in the public interest especially for the people holding MIDC Plots. While every effort has been made to ensure the accuracy of the information provided by us but we still advice you to kindly go through the relevant MIDC Circulars or seek professional guidance before taking any decision. The information provided on this blog should not be construed as legal advice or a substitute for professional consultation.
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