LAND

For purchasing or owning an agricultural land, a person or entity must have an agriculturist status. Under the Maharashtra Land Revenue Code, the Collector’s Office or the Sub Divisional Officer is authorised to change the status of land from Agricultural to Non-agricultural.
Non-agricultural land is divided into categories called zones. Land regulations governing the purpose for which land may be used and the extent to which construction is allowed, depend on the zones defined by the Town Planning Department. The Urban Development Department is authorised to change from one zone to another, as per the Regional Plan or Draft Plan.
There are two primary options while considering land acquisition for industrial purpose – freehold or private land and state owned land developed as industrial areas or parks by the Maharashtra Industrial Development Corporation (MIDC). MIDC owns 84,000 hectares or almost 30% of Maharashtra’s land area as land banks for industrial use.
Floor Space Index (FSI) is the ratio of land area to total permissible built up area. FSI is subject to standard deductions for open space and amenities and is normally the same for freehold and state owned land. Additional FSI of 0.2 can be availed on both MIDC and freehold plots by paying an additional premium.
Ground coverage is the area of land upon which construction is allowed, calculated as a percentage of net FSI.

PUNE DISTRICT

Zone FSI Open Space Deduction Amenity Space Deduction Growth Coverage
Industrial 1 10% 15% 50%of net plot area
Commercial 1 10% 15% 50%of net plot area

Land Options:

1) MIDC (state industrial park)
-Lease (plot)
-Sub-lease (built up)

2) Freehold (private)
-Lease (built up) on non-agricultural land
-Buy (agricultural plot) Convert to non-agri convert to industrial zone

COMPARATIVE ANALYSIS OF LAND OPTIONS

Basis MIDC plot MIDC built-up Freehold plot Freehold built-up
Ownership status Lease Sub-lease Buy (marketable) Lease
Title Clear title, approved for industrial use Clear title, approved for industrial use Verify seller’s title and sole rights Verify lessor’s title and sole rights
Land use and zoning Pre-approved as industrial zone Pre-approved as industrial zone 1) Change to non-agricultural use
2) Convert to industrial zone
Verify zoning from Town Planning department
Infrastructure Guaranteed Guaranteed Undeveloped Not guaranteed
Cost Lower than market price At market price At market price At market price
Choice of locations Limited Limited Wide choice Limited
Business regulatory approvals Single window clearance through MIDC Single window clearance through MIDC Multiple government agencies Multiple government agencies
Time 4 – 12 months to get possession of the plot and business approvals, Final Lease for 95 years granted after construction is completed and operations begin 1 – 3 months to complete optional modifications and get business approvals 1 – 3 years to complete purchase, conversion to non-agri, industrial zone and business approvals. Land has to be utilized for the designated purpose within 1 year of zoning permission 3 – 9 months to get business approvals after approval of lease

PROCESS OF LAND ACQUISITION

Freehold land that has not been approved for non-agricultural use cannot be bought by a non-agricultural entity. Around cities, non-agricultural freehold land is scarce and comes at a premium. Owners of non-agricultural freehold land are not likely to sell the land without development rights. They prefer to develop the land and lease built-up area.
Therefore, entities looking for large freehold plots would have to enlist the help of a developer to purchase the land, convert it to non-agricultural use and then buy, re-zone and use it for industrial purposes.
Hence, companies looking for large plots prefer to opt for MIDC plots. Though MIDC plots are available at limited locations they come with guaranteed infrastructure and single window clearance that makes business approvals simple and time bound.

Process for Lease of MIDC land (plot)

 

Time line Activity Authority
Application Apply using the White Application Form
Or register and apply online
Up to 20,000 sqm apply to Regional Officer, MIDC.
More than 20,000 sqm apply to Joint Chief Executive Officer or Deputy Chief Executive Officer, MIDC.
Dated acknowledgement receipt issued on submission of White Application Form along with payment
Within 15 days of Application MIDC issues an Offer Letter mentioning the Occupancy Price and an Application for Allotment or Blue Application Form Regional Officer, MIDC
Within 15 days of Offer Letter Applicant must pay 50% of Occupancy Price as earnest money deposit along with the duly filled Blue Application Form Receipt issued on submission of Blue Application Form along with payment
Within 3 weeks MIDC issues an Allotment Letter specifying the allotted plot number and area
Applicant can contact MIDC in case Allotment Letter is not received within 3 weeks
Regional Officer, MIDC
Within 30 days of Allotment Letter Applicant must pay balance 50% of Occupancy Price* Receipt issued by Regional Officer, MIDC
Within 7 days of payment MIDC demarcates plot boundaries and hands over possession of the plot Regional Officer, MIDC
After receipt of Possession Letter Apply for a No Objection Certificate (NOC)
NOC is issued within 10 days of receipt of application
General Manager, District Industries Centre (DIC)
Within 15 days of receipt of NOC MIDC prepares a tripartite agreement between MIDC, Allottee and Lending Institution.
Agreement to Lease is executed between the parties
Regional Officer, MIDC
The Allottee is expected to utilise the plot within a period of 3 years.
The Final Lease for 95 years is signed after the Allottee submits Building Completion Certificate and up-to-date receipts and no dues certificate

* Cancellation/ Extension of Allotment

If the applicant does not pay the balance amount within 30 days of issuance of the Allotment Letter, MIDC may cancel the allotment.

The applicant can request for extension of payment period before the end of 30 days. MIDC may grant an extension up to a maximum of 150 days, subject to interest for delayed payment. If the applicant fails to pay balance along with interest within 180 days of allotment, MIDC cancels the allotment and refunds earnest money after deducting service charges.

QUICK FACTS

Agricultural land cannot be bought or owned by a person or entity that does not have agriculturist status

MIDC offers plots for 95-year lease with guaranteed infrastructure

Additional FSI of 0.2 can be availed on both MIDC and freehold plots by paying an additional premium

Private biotechnology parks are eligible for 100% additional FSI

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