Maharashtra doubles FSI to attract private players to develop industrial land parcels


The Maharashtra state government on Wednesday announced a number of incentives intended to attract private players to acquire and develop small parcels of land under the integrated industrial area policy. The state cabinet put its stamp of approval on several changes to the 2013 policy to make it more rewarding. The policy focuses on promotion of micro, small, medium scale (MSME) enterprises in the state.


As part of the amendments, the floor space index (FSI) for such projects has been doubled to 2. A 50% stamp duty relaxation has been offered and government land can be acquired to make it a contiguous land parcel. The policy was originally prepared for small and medium enterprises to function in planned industrial areas.


Officials said the policy has not been getting a sufficient response, compared to other states. Gujarat, Tamil Nadu and Karnataka are getting a better response as their concessions are better.


The requirement to set up an integrated industrial area has been reduced from 40 hectares to 20 hectares considering difficulty in acquiring land and increasing unavailability of land in the state.


The areas will get open access to power and will be covered under provisions of the Open Access Regulation, 2013. Under the Act, customers seeking electricity in excess of one megawatt can get additional power from the energy provider through free access.


Further, the private players are now allowed to retain 80% of the total area as industrial and 20% for other purposes; earlier it was 60% and 40% respectively.


The state government has allowed Khed special economic zone to now be developed into an integrated industrial area. Last week, the state cabinet had allowed Navi Mumbai special economic zone to be developed as an industrial city.

Written by The Realty Paper

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