States

New circular on plot development, NUC irks industry representatives

The Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA) and the government’s industries department have locked horns over the latter’s circular of shortening the period allowed to develop the plot given to industrialists and slapping of the non-utilisation charges (NUC) or even initiating the procedure to take the plot back.

The Maharashtra Industrial Development Corporation (MIDC) on June 21 issued a circular announcing changes in its policy of development of industrial plots less than 20,000 square metre given to the industrialists. “Those plot users who have not utilised 40% the floor space index (FSI) of the given land parcel but have acquired completion certificate of the building, will have to utilise 40% or more FSI within the two years of publication of the circular,” it said. Earlier, the limit was 20%. It further said failing to do so will attract NUC worth 10% of the then existing land rate on the unutilised FSI, until 40% or more FSI is used. The facility to pay NUC will be available for two more years and if 40% FSI is still not used, then the area with no construction will be acquired back by the MIDC. The MIDC has directed its regional offices to conduct a survey and identify plots where 40% of the FSI has not been utilised and send notices to individuals concerned.

The MACCIA has called for a State-wide meeting of office-bearers of all representative organisations of industries on July 3 in Mumbai against the circular, calling it suicidal for the micro, small and medium enterprises (MSMEs). “The MSMEs work under tight constrains of capital and are not in a position to go for sudden expansion. Should they now focus on increasing their business or the structure of the building?” asked Santosh Mandlecha, president, MACCIA. With more than 3,500 direct members, comprising industries, traders, agriculturist and professionals, the MACCIA has a collective membership of over seven lakh business organisations from all over the State and virtually functions as the apex chamber of Maharashtra.

The MACCIA’s senior vice-president, Lalit Gandhi, said while MSMEs will suffer under the new rule, the companies which have kept thousands of acres of land under the name of mega projects and special economic zones, and the land mafias have been systematically excluded from the circular.

An official from the MIDC said the move aims at bringing as much area under development as possible or to release it for other use. “At several places, barely 10% FSI has been utilised and completion certificate of the building is acquired resulting in vast area remaining unused. We can acquire it and re-distribute it to needy businesses.”

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Printable version | Feb 19, 2020 7:14:38 AM | https://www.thehindu.com/news/states/new-circular-on-plot-development-nuc-irks-industry-representatives/article28237187.ece

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