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MIDC Guidelines - Plot Allotment, Development, Transfer, PAP Pots and ULC

Redevelopment of Industrial Plots in Maharashtra

Many a times it has been observed the development done on MIDC Land is no more of a use. The underlying factors could be Old Construction or the constructed space doesn’t meet the requirement of the industrial activity, so the plots require redevelopment. In Maharashtra for redevelopment of Industrial Plots a prior permission is required to be taken. The plot holders obtain a demolition permission from the competent authority to demolish the old building. The demolition order specifies the redevelopment period of the plot.

As per the circular dated 27/05/2015 it has been observed that in some cases, the Demolition Order does not specify the development period, so the plot holders do not carry out re-development within the prescribed development period and request for free extension. In a largely urbanized industrial area of the state, it takes a long time for large plot holders to fully develop their plots and commence the activity. Observing the challenges, the proposal was submitted in the said matter before 391st meeting of the Board of Directors held on 30/11/2021 for their decision and following extension policy resolutions were passed:

    1. The prevailing policy will remain applicable for extension in cases where a demolition order has been issued and the development period has been specified. Extension provisions in this policy will not apply to such cases.
    2. In all cases where a demolition order has been issued but the development period has not been specified, the following revised development period will be applicable from 27/05/2015 onwards.

      Index Number

      Plot Area (in Sq.Mtrs)

      Development Period

      1

      Area less than 50 thousand

      3 years

      2

      Area of 50 thousand and 1 Lakh

      4 years

      3

      Area of 1 lakh and more

      5       years

      3. Extension charges on redevelopment of Industrial Plots in Maharashtra should be levied per annum as per the lease period which is a balance period of the plot on the date on which the revised development period mentioned in the above point No. 2 has expired.

Serial No.

The remaining lease period of the plot

Of prevailing rates in the industrial zone

1

75 years and more

7.5%

2

50 years and more

5%

3

Less than 50 years

2.5%

4.In this case, the extension of the development period as per above mentioned point no. 3 should be given up to a maximum of the period mentioned in the table below.

Serial No.

Plot area (in square meters)

        Development period

1

Area less than 50 thousand

31/12/2023

2

Area of 50 thousand and more

31/12/2024

3

1 lakh and more

31/12/2025

5.In case the period of extension is less than one year, the extension fee should be calculated quarterly.

6. Due to the epidemic of Covid-19, the MIDC has given a free development period/extended development period from 01/03/2020 to 30/06/2021 to the plot holders free of cost, and the same period should also be applied in the case of this circular. In case the plot holders who have started the construction of the building as per the sanctioned building plans, the period should be given to them free of cost for the affected period between 01/03/2020 to 30/06/2021. The affected development period should not be extended beyond the period mentioned in paragraph no.4.

7.If the demolition order has been issued to the Entrepreneur and for some reason, the Entrepreneur wants to revoke the demolition order and if they make the request the MIDC to do so, then in such case, permission should be given to revoke the demolition order after getting SPA report.

8. In case the entrepreneur has been issued a complete demolition order, and the entrepreneur has requested for a partial demolition, a revised permission for demolition order should be given within the limits of the Floor Space Index (FSI) applicable to that industry unit and taking SPA report in case if the industrial unit needs to remain operational.

9. Building Completion Certificate (BCC) previously issued by the MIDC for the rest of the construction, which is currently in existence on the plot, will remain valid for the existing construction on the plot and this certificate will be valid for reuse of that construction.

10.In all cases where the development period is mentioned in the demolition order, the development period should be given as per the prevailing policy. However, if the development period is not mentioned, then the development period should be given as per paragraph nos. 2, 3, 4 of this circular.

11. In cases where partial demolition is allowed and if the plot holder does not want to construct a new building, then the extension fee will not be applicable.

12. As per the circular dated 26/09/2016 of the MIDC, the right to allot the said development period will remain with the concerned Regional Officer/Deputy CEO/Joint-CEO as per the right of allotment/transfer of industrial, commercial, residential, preferential plots.

ASCC Pvt .Ltd is into Industrial Consultancy Sector since 2004. Our services cover Industrial Real Estate Broking, Industrial Compliances. We can assist you in acquiring NOCs required for redevelopment of Industrial Plots in Maharashtra . You can reach us on :

 

Ascent Supply Chain Consultants Private Limited,
406 Raheja Arcade, Sector-11, CBD Belapur,
Navi Mumbai – 400614, MH – India.
Tel: +91-22-4897-4888
022-4897-4888

Email: info@ascc.in”

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