Small units to be allotted plots of up to 3,000 sq mt at 50% of market rate; move to boost investments, job creation
In a bid to give a boost to Micro, Small and Medium Enterprises (MSMEs) and create job opportunities, the state government announced on Wednesday that such units would be provided land in GIDC estates at 50 per cent subsidised rates.
Deputy Chief Minister Nitin Patel said that the decision was approved in the weekly meeting of the state Cabinet presided over by Chief Minister Vijay Rupani.
Until now, Gujarat Industrial Development Corporation (GIDC) was required to pay 100 per cent of the market rate for land acquired from the state government to set up industrial estates. However, from now on, GIDC would have to pay 50 per cent of the rate for 70 per cent of the land parcel, and 100 per cent for the remaining 30 per cent land.
"MSMEs will be allotted plots of up to 3,000 sq m land in GIDC estates at 50 per cent of the rate. Seventy per cent of the land will be reserved for them," the Deputy CM said.
He also said that lower land price would facilitate further investments by MSMEs in ancillary units, which would lead to job creation.
Patel, however, clarified that industries buying plots exceeding 3,000 sq m would not get the subsidy benefit, and would be required to pay 100 per cent of the price.
A senior government official said that the decision to rationalise the formula to determine the market price at which GIDC was given land was necessitated by high land rates.
"In many estates, land cost is so high that it is simply out of the reach for the MSMEs. This policy will lead to rationalisation of prices and enable more MSMEs to acquire plots. Land prices will also come down in GIDCs in backward talukas, which will boost investments and job creation," the official said, requesting anonymity.
In its annual budget statement for the year 2018-19 placed in the Assembly earlier this year, GIDC had proposed to acquire 2,960 hectare land for industrial estates this year. It had proposed expenditure of Rs 2,300 crore for land and related expenses.
SUBSIDISED RATES
Until now, GIDC had to pay 100% of the market rate for land acquired from the state govt to set up industrial estates. However, from now on, they would have to pay 50% of the rate for 70% of the land parcel, and 100% for the remaining 30% land.
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