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.
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Navi Mumbai – 400614, MH – India.
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