MAKE IN INDIA – MAKE IN MAHARASHTRA
- Maharashtra is one of the best destinations for setting up any industry because of the friendly policy of the Government of Maharashtra besides many other favourable factors. The Maharashtra Government also offers various incentives to the industries as per the zone. The Government of Maharashtra has issued ‘Package Scheme of Incentives’ in the year 2013. Read more about ‘PSI -2013’ in our blog.
- One can set up an industry in Maharashtra on Free Hold Industrial land or land allotted by Maharashtra Industrial Development Corporation (MIDC).
- Government of Maharashtra has earmarked industrial zones throughout the estates. Company / Firm can purchase the FREE HOLD land in resale in the designated industrial zone and commence the industrial activity after obtaining the requisite permits and licenses. One can also purchase the agriculture land, convert the same for Industrial use through Collector and commence the industrial activity.
- If one’s land requirement is not very large and its project falls under medium or small scale, then one should set up industry only on MIDC land because of availability of infrastructure, water, power, Labour, CETP, good connectivity etc. MIDC also provides various benefits to industries under Maharashtra Industrial Policy. For industrial units falling under Red category (small, medium or large) we only recommend MIDC land as it is easy to get all kinds of permits and licenses. MIDC land is bit expensive, but keeping in view the overall benefits, infrastructure, facilities etc. available, MIDC land always outweighs the free hold land for setting up any industry. Visit our blog to know the advantages and disadvantages of MIDC and Free Hold land.
- MIDC has setup a procedure throughout Maharashtra for allotment of midc land on leasehold basis for 95 years on certain terms & conditions which are stipulated in the Lease Deed.
- The allotment of land in MIDC for industrial use is being done through direct online application. Sometimes MIDC resorts to auction, where availability of plots is less as compared to the demand. Commercial and residential plots in MIDC are normally allotted through auction only. MIDC insists for zero discharge certificates from the industries while submitting white application form, where Common Effluent Treatment Plant (CETP) is not provided by MIDC.
- Membership of CETP to discharge industrial effluent is mandatory.
- While submitting the application for allotment of an industrial plot in MIDC, the proposal containing following documents is to be submitted to MIDC:-
- Request Letter to MIDC on letter head
- Online Application
- White Application Form duly filled
- Detailed Project Report
- Copy of MOA (if Pvt. Ltd.) / Registered Partnership Deed (If Partnership Firm)
- A. Certificate for share holding (if Pvt. Ltd.)
- Board Resolution (if Pvt. Ltd.)
- Block Plan of proposed utilization of plot
- Demand Draft towards processing fees
9. MIDC after scrutiny of the proposal, issues a letter to the applicant to present before the Land Allotment Committee (LAC) meeting.
10. Assignment of Powers to Land Allotment Committee (LAC) is as follows:
|1||Allotment of industrial plot up to 10000 Sq. Mtrs. in “A” & “B” category and up to 15000 Sq. Mtrs. in “C”, “D” & “D+” category||LAC Headed by Regional Officer|
|2||Allotment of industrial plot 10001 to 20000 Sq. Mtrs. in “A” & “B” category and 15001 to 30000 Sq. Mtrs. in “C”, “D” & “D+” category||LAC Headed by Dy. CEO|
|3||Allotment of industrial plot above 20000 Sq. Mtrs. of in “A” & “B” category and above 30000 Sq. Mtrs. in “C”, “D” & “D+” category||LAC Headed by Jt. CEO|
|4||Plots & Built Up Galas in IT / Biotech parks||LAC Headed by Jt. CEO (IT)|
|5||Allotment of industrial plot up to 5000 Sq. Mtrs. in “A” & “B” category and 5001 to 10000 Sq. Mtrs. in “C”, “D” & “D+” category for expansion of Business||LAC Headed by Dy. CEO|
|6||Allotment of industrial plot up to 5000 Sq. Mtrs. in “C”, “D” & “D+” category for expansion of Business||LAC Headed by Regional Officer|
11. Certain number of plots are kept reserved for SC/ST/ NT/OBC/ handicap person and Women Entrepreneurs. Project having Foreign Direct Investment (FDI) is considered on priority and given preference in the allotment of land by MIDC. The company intending to set up an industry in Maharashtra is expected to get FDI equivalent to @ Rs. 4 Crores / per acre.
12. LAC consists of officers from MIDC Land Dept., MIDC Engineering Dept., MIDC Planning Dept., MPCB & DIC. The entrepreneur is required to present his/her project in front of the members of LAC to justify requirement of land. The members of LAC also check-up the viability of project, emission norms, employment generation etc.
13. The Land Allotment Committee checks-up the project viability and accordingly takes decision for allotment of plot to the applicant.
14. If LAC agrees to allot the plot to the applicant, then MIDC issues the Offer letter for payment of EMD of 25% within 15 days of issuance of letter.
15. After payment of EMD, MIDC issues the Allotment Letter with the plot number and ask the applicant to pay the balance 75 % of premium within 30 days of issuance of letter.
16. Road width charges are also applicable for plots up to 10 Acres. 50 % concession is given to Plots above 10 acres up to 25 Acres. There is no road width charges for allotment of plots above 25 Acres or if the investment is above 100 Cr.
17. Once the balance payment is made, then possession of the plot is given by MIDC and Agreement to Lease is executed between MIDC and the allottee.
18. The process of allotment of plot by MIDC has been explained in a ‘Flow Chart’ placed below:
19. Normally the entire process takes about 3-4 months for completion of MIDC plot allotment. After taking the possession of land and executing Agreement to Lease, the entrepreneur is to apply and obtain various consents and licenses to establish the industry. Normally the entrepreneur needs to obtain MSME registration from DIC, MPCB Consent to establish and Provisional Fire NOC from MIDC Fire Department before submission of plans to Special Planning Authority (SPA) of that region.
20. In case the allottee of MIDC plot is going to store any hazardous, explosive or inflammable items, he/she would need PESO License and advised to get plans approved by PESO before commencing construction on the plot of land. The allottee should also get its plans approved by DISH. The Government of India has also defined the products which need Environmental Clearance (EC). One cannot carry out development activity on its plot without EC for such products. It is mandatory to obtain EC for such items.
21. Get the plans approved from the Planning Authority of MIDC and carry out development activity on the plot of land. You may also get temporary water connection from MIDC for construction purpose and Temporary Electricity connection from MSED. On completion of construction, you can Obtain Building Completion Certificate (BCC) and Occupancy Certificate (OC) from SPA and install your plant and machinery.
22. For post construction activity you will need – MSME Registration Part II, MPCB Consent to Operate, Factory License from DISH, Permanent water connection and execute the Water Supply Agreement with MIDC, electricity connection, and membership of waste management agency for solid and liquid waste. You may also need other permits and licenses specific to your activity.
23. The aim of this blog is to explain the entrepreneur the process of obtaining Industrial land and its development in the simplistic form. However, we do not take any responsibility for any unintended omissions or mistakes in this blog. You may visit MIDC or refer to the MIDC website midcindia.org for current status and details.
24. In case you need any help or guidance on the above process, you may contact us – Ascent Supply Chain Consultants Pvt Ltd (ASCC), 406, Raheja Arcade, Sector – 11, CBD Belapur, Navi Mumbai – 400614 or call Ms. Vanita Yadav, 022-489-74888, or write to us at email@example.com. You may also visit us at ascconline.com to know more details of our other activities.
25. We also have a big data base of 7500+ (running or closed) different type of industries (small, medium or large) in MIDC or Free hold for sale / lease in different parts of country. In case you like to go for such industry, you may contact Ascent Supply Chain Consultants at above address.
26. We wish you all the best and a very great success for setting up and operating your industry.