Chennai

Sipcot caps licence fees for subleasing of built-up space by industries

Move aimed at incentivising units that utilise allotted land well

The State Industries Promotion Corporation of Tamil Nadu Limited (Sipcot) has revised the licence fee structure for subleasing of built-up space by industries by introducing a cap on the rates, effective August 1.

The move comes after industries gave feedback to the government that licence fees for subleasing of space were higher than in States like Karnataka and Kerala. “An industry which has acquired land and utilised a part of it for its operations can sublease the unutilised area. The licence fee structure was introduced in 2012 and provided for a 5% annual hike. As a result, the licence fee in most cases went up to ₹7-8 per sq ft/ month,” a senior government official said.

He said the revised rates were aimed at incentivising industries which utilise the allotted land well and penalising those who do not. In case of subleasing of plots to group companies, the licence fee per sq. ft. per month will be 0.5% of the prevailing plot cost, restricted to ₹1. Group companies means the original allottee/sublessee company or the major shareholders holding more than 50% of the shares in the group company/companies, according to a recent order.

In case of sub-leasing to third parties, the licence fee per sq ft per month will be 1% of the prevailing plot cost restricted to ₹2. Likewise, for Siruseri Information Technology Park (SITF), it will be ₹2.50 for group companies and ₹5 for third parties. “The allottees who have commenced the commercial production and utilised at least 50% of the allotted area (including factory building, utility area/ internal roads, applicable green belt etc.,) will be permitted to construct Plug & Play facility/Warehouse in the balance unutilised area and sub-lease the same, subject to remittance of applicable sub-leasing charges,” according to the order.

The allottee can sub-lease built-up area initially for a period of five years, which is renewable every three years thereafter.

“With regard to MoU/G.O cases including co-developers of SEZs, they should not collect charges for sub lease of the plot, whatever name called, at a rate higher than the rate at which Sipcot allotted the plot to them. If higher rates are charged it should be shared with Sipcot,” according to the order.

Transfer charges

Sipcot has also made changes to transfer charges collected in case of change in management/transfer of leasehold rights on the allotment of plots in the Sipcot industrial complexes/parks/growth centres. The new transfer fee will be made applicable for the Change in Management / Transfer of Leasehold rights where the effective date of transfer of share holding is on or after July 18, 2019.

In case of unit not commenced commercial production, the applicable transfer fee will be 100% of differential plot cost and 10% of differential plot cost for units functioning more than 5 years from the date of commencement of commercial production.

(With inputs from Sanjay Vijayakumar)

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Printable version | Jul 7, 2020 9:45:06 PM | https://www.thehindu.com/news/cities/chennai/sipcot-caps-licence-fees-for-subleasing-of-built-up-space-by-industries/article28873702.ece

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