Start units on industrial plots within 15 months, else......

By Vikas Vaidya

To resolve the contentious issue of unutilised non-agricultural land for industrial purposes, Maharashtra Government has come up with a novel ‘Udyog Sanjivani Yojna’. All the owners or allottees of industrial plots are expected to participate in the scheme and start their venture within next 15 months, else the Industries department has decided to take back the plot.
Chief minister Devendra Fadnavis had already directed that non-agricultural land earmarked for industries should be utilized only for industrial purposes. Since lot of clearances and concessions are granted for industrial plots, same must be put to use at the earliest, he had repeatedly stated. Though announcement to seize the plots were made, but never put to action fearing backlash from investors. Amidst global slump, the Government was also in a fix as such step would have deterred the investors and small industries.
Devising a golden mean in the form of ‘Udyog Sanjivani Yojna’ (USY), the State Industries department has made it mandatory for the industrialists to sign a legal agreement with MIDC. The would be industrialist would get the land for a period of 15 months. For previous allottees, Government would not go into past records and would charge only 50 per cent extension fees. There will be one condition under which the land-owner has to use at least 20 per cent of FSI and go into the production. If both things are not done then MIDC would take back the land. Due to mutually agreed agreement, chances of protracted legal proceedings are ruled out in case of cancellation. Those unwilling to participate in USY, have to return the plot to MIDC. Government will give them present ready reckoner cost and will deduct only 5% amount towards processing and other expenses.
Confirming this development, Chief Executive Officer of MIDC Bhushan Gagrani said, “In fact MIDC gives the plots to industrialists at 60 per cent of the prevailing market cost to attract maximum investment and boost job growth. Despite our liberal policy, we found to our dismay, that large tracts of industrial plots remained unutilitsed. The allottees were neither willing to start any unit nor keen to return the plot and held the land to make some profit. Therefore, we have stopped issuing extension, handing over of the free land etc. But nothing could stop this practice. Finally we have come out with this scheme. The scheme is beneficial for genuine investors and entrepreneurs. If they participate in the scheme they will get lot of facilities, if not, they will get the money.”
Laghu Udyog Bharati Vice-President M Rajesh said, “Many people have purchased lands in MIDC, but even industrial estates like Nagpur MIDC hardly 35 per cent are using it for some industrial production. Laghu Udyog Bharati has given memorandum from time to time to Chief Minister and demanded that such lands should be seized and given to those who are interested in doing business. If there is a delay to set up industry, a fine should be imposed. Now as Government has taken that step we welcome it, but this should be implemented strictly.”