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MIDC Circulars / Guidelines.

Payment of Compounding Charges to MIDC

Compounding Charges

MIDC has framed construction norms for development of the Plots in the Industrial Areas.  Many a times people violate the norms and the construction is done without following development norms. For regularizing the illegal construction MIDC charges Compounding fees. MIDC has issued/revised many guidelines for the regularization of construction and Payment of Compounding Charges to MIDC.  This article highlights the salient figures of the various circulars issued by MIDC on Payment of Compounding Charges to MIDC.

  • Area violating rules with Marginal Space Encroachment: Marginal Open Space is the mandatory condition of MIDC. In case of regularizing Encroachment in Marginal Space by paying Compounding Charges, the Area permitted shall be 10% of the already constructed built up area or 40 Sq. Mtrs, whichever is lesser.
  • Ancillary Structures allowed in the Marginal Spaces for the plot size upto 5000 Sq.Mtrs : Suction Tank & Pump Room of maximum 2 Sq. Mtrs area, DG set, Cooling Tower, Effluent Treatment Plant etc.
  • Ancillary Structures allowed in the Marginal Spaces for the plot size above 5000 Sq.Mtrs subject to a minimum of 9.00 meter distance between main factory building and ancillary structures : Suction Tank, DG set, ETP, STP, Pipe structures for carrying steams and liquids.

As per revised Circular No: MIDC/CP/D98927/2022 dated 2nd December 2022,  the compounding charges for regularization of construction in marginal open space of industrial and other types of buildings for all plot areas are as follows-

Industrial area falling in group ‘A’ Area of Encroachment x 2 Times the Block Rate
Industrial area falling in group ‘B’ Area of Encroachment x 1.5 Times the Block Rate
Industrial area falling in group ‘C’ ‘D’ and ‘D+’ Area of Encroachment x Block Rate


 Compounding charges for regularization of ancillary structures in marginal open space having minimum 9.00 m distance between said structures and buildings for plots above 5000 Sq. Mtrs area = 50 % of block rate for Class 1 construction x area of encroachment x 50%.

Following are the Block rates for the year 2022-23 for Mumbai, Pune, Aurangabad and Nagpur Zone:

Sr. No Class of Building Mumbai Pune Aurangabad Nagpur
1 Class-1 23352 22585 21993 22109
2 Class-2 22192 22160 21579 21693
3 Class-3 22420 21675 21101 21213
4 Class-4 21981 21250 20680 20797


Application regarding regularization of structure is submitted for approval of the CEO, MIDC through Chief Planner after obtaining remarks of Fire Department.

For circular Click Here.

ASCC Industrial Consultants

ASCC is a leading Industrial Real Estate Consultant in Maharashtra is a registered Pvt and SSI (in service sector) established in 2004 with a track record of serving about 450+ industries which includes 31 fortune 500 companies or MNCs. We have a team of highly skilled specialists provides strategic and operational support for doing business in India. The strategic support includes selection of site for setting up the industry (Acquisition of Leasehold Industrial Land under Priority Allotment (FDI), allotment through e-bidding, Resale Industrial land) and all legal property transfer formalities, and operation support includes support for obtaining all requisite consents, NOCs, Permissions and Licenses to establish and run the industry.

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

Email: info@ascc.in

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