Research and development activity aims at the innovation of new products or services in a company. R & D department constantly works on keeping the company competitive as it produces products that advance and elevate its current product line. The departments assist in building patents, trademarks, or breakthrough discoveries with lasting benefits to the company. In short, Research and development (R&D) includes activities that companies undertake to innovate and introduce new products and services. R & D is an integral part of Industrial Activity but was headed under Commercial/Service Activity. MIDC via circular No: MIDC/T.S./A92493/2022 dated 16/03/2022 has passed a resolution on inclusion of Research & Development in the Industrial Sector and the plots to be allotted/ transferred at Industrial Rate. This article highlights the guidelines of the Past and Present Circular.
Research & Development – An Industrial Activity
According to MIDC’s Circular No. MIDC/K-3/458, dated 22/6/2000, Industrial R & D Laboratory, Industrial Testing Laboratory and Laboratory for Testing of Raw Material and Finished Products were counted as Services and was allotted at Commercial Rate. Hence Provision has been made for this matter that if the plot is given from the Industrial Area, it should be given at the industrial rate, and if the plot is given from the Commercial Area, it should be given at the commercial rate. However, Research & Development activity helps in manufacturing quality products and helps in meeting the needs of the customers in the market in a competitive manner. Also, by strengthening the ecosystem related to the manufacturing sector and promoting industrialization, Keeping this in view, while giving new plots for Research and Development/for the purpose of transfer of plots, Research and Development should be considered as Industrial and the said plot should be allotted at an industrial rate. Accordingly, the matter was presented in the 392nd meeting of the Board of Directors held on 31/01/2022. It was discussed in detail and after the discussion, Resolution No. 6398 was passed.
According to the said Resolution, if the activity of Research and Development in the Industrial Sector of MIDC is carried out by the Industrial Unit for itself or for other Industries, then the said activity along with its laboratory should be considered Industrial. Also, while granting new plots for Research and Development/ for the purpose of transfer of plots, Research and Development should be counted under the Industrial head and the said plot should be allotted at an industrial rate, and take action accordingly.
To know the complete guidelines, Click Here.
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.
Our company can also assist you to obtain all kinds of consents, permits, NOC and Licenses for your industrial activity.
Ascent Supply Chain Consultants Private Limited,
406 Raheja Arcade, Sector-11, CBD Belapur,
Navi Mumbai – 400614, MH – India.