Extension Charges on MIDC 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.

This document provides an overview of the key features in the revised guidelines issued by MIDC related to plot development and the enforcement of extension charges.

MIDC Circular No: E28833 dated 23/01/2023 MIDC- implementation of special extension scheme regarding extension of time for developing plots

1. Extension Charges for Normal Plots: As per the circulars dated 06.03.2013 and 29.04.2014, the first extension at a non-refundable additional charge of 10% (for D and D+ regions) and 25% (for A, B, and C regions), and the second extension at 10% (for D and D+ regions) and 40% (for A, B, and C regions) of prevailing MIDC Rate will continue to remain in effect.

2. 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)

3. For further Extension: After granting the above-mentioned extensions to the plot holder, a 5% non-refundable extension fee should be charged for all subsequent extensions.

4 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.

5: If the plot holders are fulfilling the terms and conditions specified in the circular issued in connection with COVID-19, they should be granted the benefits outlined in the COVID-19 circular.

6. Eligibility Criteria for Availing Scheme Benefits: : To qualify for the scheme’s benefits, plot holders must have approved plans. Eligible holders include those who have completed construction and either started production, halted production, or not yet started production. Compliance with the Corporation’s development control regulations must be confirmed through a report from the relevant authority.

7. Extension Fee for Exceeding 90-Day Free Period: Plot holders who received a 90-day free extension as per the circular dated 08.09.2015 and have not obtained a completion certificate within that period will incur an extension fee of 5% of the prevailing rate for any further extensions.

8. Ineligible Plots for Scheme : Plots without plan approval, completed construction, or production, and whose development period and the expansions are expired before 31.08.2013, are ineligible for the scheme. Their plots must be reviewed and promptly taken over by the regional office and development control authority per Corporation regulations.

9. Application Deadline : The final deadline for submitting complete applications under this scheme is 30.06.2023

Note: Ineligible Plots are to be taken back as per the Corporation’s regulations by 31.08.2023.

MIDC Circular No: P127778 dated 24th January 2023 MIDC- implementation of special extension scheme regarding extension of time for developing plots.

1. Additional Surcharge: Relaxation of 90 days for getting Building Plan Approval with an additional surcharge of 5% is to be given from the date of issuance of the circular.

2. Application under Special Extension Scheme:: A revised guideline is being issued to apply under special extension scheme for the plots which doesn’t have building plan approvals in place. According to Circular No: E-28833, dated 23.01.2023 for developing plots was up to 30.06.2023. However, revised application period was extended for 90 days’ from the date of issuance of the circular with all necessary documents.

3. Development of Plot: After the special extension is approved, it is mandatory for the plot holder to obtain building approval and complete the construction within the permitted extended period.

Note: Plot holders who have not taken advantage of the scheme, or those who have not been granted an extension under the above policy, and who do not complete the development and obtain the building completion certificate within the extended period, their plots would be reclaimed by the department.

To view the circular, Click here

MIDC Circular No: P125865 dated 13th August 2024 MIDC- special extension scheme for extending the development period of plots.

While maintaining all the terms and conditions of Circular No. E-28833, dated 23.01.2023, following amendments have been done:

1. Additional Premium: The requirement for Plan approval mentioned in Condition No. 7 is being relaxed for 90 days from the date of issuance of the circular. However, a one-time additional premium amount equivalent to 5% of the prevailing rates would be charged for this extension.

2.Application under Special Extension Scheme : A revised guideline is being issued to apply under special extension scheme for the plots which doesn’t have building plan approvals in place. The application is to be submitted within 90 days’ from the date of issuance of the circular with all necessary documents.

3. Development of Plot: After the special extension is approved, it is mandatory for the plot holder to obtain building approval and complete the construction within the permitted extended period.

Note: Plot holders who do not take advantage of the scheme, or those who have not been granted an extension under the above policy, and who do not complete the development and obtain the building completion certificate within the extended period, their plots would be reclaimed by the department.

To view the circular, Click here

To get the complete insight on the previous policy laid by the department, Click here

Services provided by ASCC for Industrial Land :

1. Assistance in getting a plot from MIDC via Direct Allotment, E-bidding, Priority Allotment, etc.
2. Assistance for Transfer of plot, Sub-letting of plot, Sub- Lease, Sub division and transfer of sub divided plot, etc.
3. Assistance for Execution of Predetermined Lease, Final Lease and Deed of Assignment.
4. Assistance for obtaining  Extension of time limit from MIDC.
5. Assistance for Amalgamation / sub division of plots.
6. Assistance for obtaining Building Plan Approval & Provisional Fire NOC
7. Getting Final Fire NOC from MIDC.
8. Assistance for obtaining Building Completion Certificate.
9. Registering LOI and setting up of IT/ITES activity.
10. Assistance for obtaining permission from MIDC for Change of Activity.

Additional Value Added Services (Permits & Licenses) provided by ASCC

1. Advisory and Consultancy for permits & licenses.
2. Preparation of Project Report
3. Registration of MSME & LSI.
4. MPCB Consent to Establish and Operate.
5. Factory Plan Approval and License from DISH if applicable.
6. Petroleum and Explosives License (HSD and other Class A, B, C –Petroleum Products, Chemicals, Gas Cylinder Rules for Canteen/Cafeteria.
7. Contract Labor – Site Registration.
8. MIDC SPA Approvals – Construction Related.
9. Water & Electricity Connection Approvals.
10. Any other approvals / permits as per requirement of project.

Reach Us at

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