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Allotment of Industrial Plots

Chapter 3

                                                                  

Allotment of Industrial Plots

 

 

3.1          For the purpose of allotment, each sector/phase of the Industrial Estates/IMTs shall be declared as saturated after 90% of the area of carved out industrial plots has been allotted.

 

3.2         Reservation of industrial plots:

 

  1. The reservation of industrial plots shall be available only in unsaturated estates as under:

 

 

a)            Up to 10% of the plots/sheds will be reserved in each Estate for allotment to NRIs/ PIOs and for units with 33% or more FDI in total investment. In case of NRI Plots, the entire amount towards the price of the plot has to be remitted through NRE Account of the applicant or in remittances from abroad/ foreign exchange. In the case of FDI, at least 33% of the Project Cost has to come from the FDI route. However, the 10% limit would not preclude allotment of plots in the FDI category as a part of the general scheme of allotment;

 

b)             Preferential  allotment  up  to  2%  of  the  plots/sheds  in  each  Estate  has  been

 

prescribed by the Government for allotment to persons with disabilities as defined in the Persons with Disabilities (Equal Opportunities, Protection of Right and Full Participation) Act, 1995. The Government has also prescribed a differential rate of interest on instalments for this category (For complete details in this regard, Haryana Government Notification No. 49/40/07/4IBI dated 13.03.2007 may be referred). However, in case no applications are available from the eligible category, the un-allotted plots may be utilised under the general category.

 

 

c)             Any other reservation of industrial plots/sheds as may be decided by the State Government/HSIIDC from time to time.

 

 

  1. In saturated estates, there will be no reservation for these categories and their applications shall be considered as general category applications.

 

 

  1. Irrespective of number of industrial plots allotted under the above categories in the past, the number of plots reserved for future allotment in unsaturated areas, shall be worked out on the basis of total number of plots available for allotment as on 30.09.2015.

 

3.3          Subject to the above, the allotment of Industrial plots shall be governed as under:

 

  1. i.             On an on-going basis in the following cases:

 

a)            Mega Projects involving fixed capital investment (i.e. land, building, machinery & misc. fixed assets) of Rs. 100 crore and above or projects involving employment generation of more than 500 persons and serving as anchor units for proliferation of ancillaries.

 

b)            Prestigious projects involving fixed capital investment (Land, Building, Plant and machinery & misc. fixed assets) as mentioned hereunder:

 

i)             Category `A’ Estates -  Rs. 50 crore and  above.

 

ii)            Category `B’ Estates -  Rs. 40 crore  and above.

 

iii)         Category `C’ Estates  - Rs. 30 crore  and above.

 

c)             Allotment under fast track scheme to Central/State  Government PSUs;

 

 

The HSIIDC would display the availability of industrial plots under above categories on its website and the applications in respect of all these categories can be submitted on an on-going basis to the HSIIDC.

 

 

  1. The applicants other than those under above categories shall be invited through advertisement.

 

3.4         Process of Allotment:

 

  1. i.             General / NRI / FDI / Persons with Disability Category Allotment:

 

a)            The HSIIDC shall invite applications for allotment of industrial plots of various sizes and one month period shall be given for submission of applications. The process of allotment of industrial plots, in respect of applications received in a particular month shall be finalized preferably in the next two months. The number of plots against which applications are to be invited shall be decided by MD/HSIIDC;

 

 

b)            All the applications received under the above categories shall be evaluated against the following evaluation criteria by the In-house Committee of Senior officers of HSIIDC, whose recommendations shall be put up to the Industrial Plot Allotment Committee for approval:

  

 

Sr.

Criteria

 

 

 

 

Marks/

Remarks

 

 

 

 

 

 

No.

 

 

 

 

 

Weightage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.

Qualification

 

 

 

10

a)

Graduate/Polytechnic

Diploma  /

 

 

(qualification

of

 

the

 

 

ITI- 5 marks

 

 

 

 

 

 

applicant/any

of

 

its

 

 

 

 

 

 

 

 

 

 

promoters).

 

 

 

 

b)

B.Tech/Professional

 

 

 

 

 

 

 

 

 

 

 

qualification-10 marks

 

 

 

 

 

 

 

 

 

 

 

 

2.

Experience

of

 

the

12

a)

Business   /job   experience-   6

 

 

promoters

 

 

 

 

 

marks

 

 

 

 

 

 

 

 

 

 

 

b)   Experience  in

the

line-trading/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

manufacturing

or

relevant

job

 

 

 

 

 

 

 

 

 

experience-12 marks.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.

Shifting

from

non-

8

 

 

 

 

 

 

 

 

 

conforming

area/rented

 

 

 

 

 

 

 

 

 

 

premises

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.

Land Utilization

 

 

5

Where proposed built-up area  is more

 

 

 

 

 

 

 

 

than 60% of the plot area

 

 

 

 

 

 

 

 

 

 

5.

Level

of

proposed

6

The proposed investment in building

 

 

investment

 

 

 

 

and  plant  &  machinery  being  more

 

 

 

 

 

 

 

 

than;

 

 

 

 

 

 

 

 

 

 

 

 

 

a) twice the value of land- 2 marks

 

 

 

 

 

 

 

 

 

b) 2.5 times the value of land-4 marks

 

 

 

 

 

 

 

 

c) 3 times the value of land- 6 marks

 

 

 

 

 

 

 

6.

Women

entrepreneur/Ex-

5

The promoter falling in any of these

 

 

servicemen/Scheduled

 

 

 

categories should hold majority stake

 

 

Caste

 

 

 

 

 

(51% or more) in the project.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7.

First

 

generation

5

 

 

 

 

 

 

 

 

 

entrepreneurs intending to

 

 

 

 

 

 

 

 

 

 

set up business for the first

 

 

 

 

 

 

 

 

 

 

time

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.

Resource Position

 

 

5

The

promoters/applicant

submitting

 

 

 

 

 

 

 

 

detail  of  liquid  resources  to  the

 

 

 

 

 

 

 

 

extent  of  atleast  25%  of  the  total

 

 

 

 

 

 

 

 

investment, supported by a Chartered

 

 

 

 

 

 

 

 

Accountant Certificate.

 

 

 

 

 

 

 

 

 

 

 

 

 

9.

Extent

of

employment

9

Projects

involving

employment

 

 

generation

 

 

 

 

generation in the ratio of

 

 

 

 

 

 

 

 

 

 

a)

75 persons per acre- 3 marks

 

 

 

 

 

 

 

 

b)

100 persons per acre- 6 marks

 

 

 

 

 

 

 

 

c)

150 persons or more per acre-

 

 

 

 

 

 

 

 

 

9 marks

 

 

 

 

 

 

 

 

 

 

 

 

 

10.

Income

Tax

Payments

by

10

In  case  the  applicant  and/or  its

 

 

the promoter/applicant

 

 

promoters  are  paying  in  aggregate

 

 

 

 

 

 

 

 

income tax equal to Rs.2.00 lakh per

 

 

 

 

 

 

 

 

annum  (as  per  last  Financial  Year

 

 

 

 

 

 

 

 

details)  and

applying

for

a  plot

of

 

 

 

 

 

 

 

 

1000

sq.   mtr.   or   in   proportion

 

 

 

 

 

 

 

 

thereof.

 

 

 

 

 

 

 

11.

Past

performance

of

10

In   case   the   annual   turnover

of

 

existing

operations  of

the

 

applicant  and/or  group  concerns  is

 

applicant/group concerns

 

Rs.2.00 crore or more and applying for

 

 

 

 

 

a  plot  of  1000  sq.  mtr.  or

in

 

 

 

 

 

proportion  thereof  depending  upon

 

 

 

 

 

the size of the applied plot. For this

 

 

 

 

 

purpose,  the  promoter  should  be

 

 

 

 

 

holding atleast 26% stake in the group

 

 

 

 

 

concern.

 

 

 

 

 

12.

Expansion  by  applicant  /

10

The  promoter  should  have  stake  of

 

its promoters proposing to

 

atleast  26%  in  existing  running  unit

 

set up expansion project

 

and marks shall be assigned as under:-

 

 

 

 

 

Existing  unit  running  in  the  same

 

 

 

 

 

industrial estate -  10 marks

 

 

 

 

 

 

Existing  running  unit  located  other

 

 

 

 

 

than the same industrial estate -

5

 

 

 

 

 

marks

 

 

 

 

 

 

 

13.

Start-up,

new

5

 

 

 

technologies/projects

with

 

 

 

 

innovative ideas

 

 

 

 

 

 

 

 

 

 

 

 

The benchmark for selection of the applicants in respect of the estate falling in A, B & C category shall be 45, 35 and 30 marks respectively. Further, the following guidelines shall be taken into consideration for evaluation of applications by the committee constituted for this purpose:

 

i)             The proposed project should be falling in the category of permissible activities; should not involve high pollution, high water consumption and the project parameters should be matching with the infrastructure facilities of the particular industrial estate.

 

ii)            Where the applicant / its promoters are already having industrial plots in HSIIDC Industrial estate and the plot is lying vacant/project is yet to be implemented, the requirement of additional land must be justified by the applicant.

 

iii)          Where the applicant / promoters are in default towards payment of dues of the Corporation in respect of existing allotted plots, the same shall be required to be cleared before issuance of Regular Letter of Allotment.

 

iv)           Justification of land applied.

 

 

c)             In case the number of qualifying applications after evaluation are found to be less than the number of plots offered for allotment, the allotment shall be made by the Industrial Plot Allotment Committee comprising of MD/HSIIDC, MD/HFC, DI/Haryana and MD/HARTRON. Senior most member shall act as Chairman of the Committee;

 

d)            In case the number of qualifying applications after evaluation are more than the number of plots offered for allotment under the above categories, the allotment shall be made through limited e-auction amongst the qualifying applicants;

 

e)            In saturated estates, in case the number of applications received are less than the number of plots offered for allotment, the same may be re-advertised/the time period for submission of applications may be extended by the Managing Director, HSIIDC. In saturated estates, normally 25% - 50% of the available plots shall be offered for allotment in one go, however, MD/HSIIDC will take a final view in this regard. In case of re-advertisement, the number of offered plots may be reduced by the Managing Director.

 

f)             The applications for allotment of adjacent plots to the existing running units in unsaturated industrial estates shall be received by the Corporation along with other general category applications and allotment shall be made, irrespective of size of plot, at the weighted average auction price of the respective lot. In case there is more than one application for allotment of the same plot, the allotment shall be made through e-auction between the applicants.

 

  1. ii.            Prestigious Projects Category:

 

a)            The applications under this category shall be received by the HSIIDC on an on-going basis. The HSIIDC will display the availability of Industrial plots for prestigious projects category on its website.

 

b)            The allotment under this category shall be made at allotment rate(s) fixed/revised by the HSIIDC from time to time, by Higher Level Plot Allotment Committee

 

comprising of Administrative Secretary of the Industries Department, MD/HSIIDC, MD/HFC and DI/Haryana. Administrative Secretary of the Industries Department shall be Chairman of the Committee.

 

c)             In case the number of applications received in respect of any plot-size category are more than the number of available plots, the allotment shall be made through limited e-auction.

 

  1. iii.           Mega Projects Category:

 

a)            Applications for allotment of plots under this category shall be received by the HSIIDC on on-going basis;

 

 

b)            The allotment of industrial plots under this category involving concessional rates with other incentives (a customized package) shall be made by Haryana Enterprise Promotion Board under the Chairmanship of Hon’ble Chief Minister/Haryana.

 

  1. iv.           Central/State Government PSUs Category:

 

a)            The allotment of industrial plots to set up permissible projects by well-known Central / State Govt. Public Sector Undertakings, shall be made on fast track basis. The applications for allotment of plots under this category shall be received by the HSIIDC on on-going basis.

 

 

b)            The allotment under this category shall be made by MD/HSIIDC at allotment rate fixed/revised from time to time.

 

  1. v.            Specific Industry Clusters Category:

 

In case the HSIIDC receives proposal from any cluster/group of industrial units falling under a particular industry category seeking allotment of land for setting up/re-location of their units engaged in a specific trade, in HSIIDC Industrial estates as a cluster, involving aggregate investment of at least Rs.100 crore, the HSIIDC may carve out a special cluster for such industrial units. The procedure for allotment of industrial plots in such cluster shall be the same as for general category allotment.

 

3.5         Committees appointed for the purpose:

 

i)

For

Mega projects

having  fixed  capital  investment (land, building, machinery

 

and

misc. fixed assets) of Rs. 100 crore  & above or projects involving employment

 

generation of more than  500 persons and serving as anchor units for proliferation

 

of  ancillaries,  seeking  allotment  of  plots  at  concessional  rates  with  other

 

incentives (a customised package), allotment of industrial   land/ plot   shall be

 

made  on ongoing

basis by the Haryana Enterprise Promotion Board (HEPB) under

 

the

Chairmanship of  Chief Minister, Haryana.

 

 

ii)            Allotment of Plots for prestigious projects involving specified fixed/tangible capital investment (Rs. 50/40/30 crore or above) as mentioned at 3.3 (i) (b) above, will be made by the following committee:

 

1

AdministrativeSecretaryof

the

Chairman

 

Industries Department

 

 

2

MD/ HSIIDC

 

Member- convenor

 

 

 

 

3

MD/HFC

 

Member

 

 

 

 

4

Director, Industries

 

Member

 

 

 

 

 

 

iii)           For categories of applications received under para 3.3 (ii) above, the Committee will be as under:

 

1

MD/HSIIDC

Member

 

 

 

2

MD/HFC

Member

 

 

 

3

Director of Industries, Haryana

Member

 

 

 

3

MD/HARTRON

Member

 

 

 

Note:

The Senior-most member will act as Chairman of the Committee.

 

At-least one member, besides MD, HSIIDC should be present in all

 

meetings to complete the quorum. Substitution can be made in

 

extreme exigencies with an officer of the concerned Department

 

/Organisation.

 

 

3.6         Payment Terms

 

i)             10% of the tentative price of the plot along with the application as earnest money;

 

ii)            15% within a period of 30 days of issue of RLA (date of issuance of RLA to be excluded), further extendable for 30 days with interest @ 15% p.a. for the extended period;

 

iii)

In  the event

an allottee  fails to make payment  of 15%  tentative  price of the

 

plot within 60

days  period (date of issuance of RLA to be excluded), the RLA shall

 

automatically lapse and the amount deposited by the allottee towards the price of

 

the plot shall be refunded without interest,  without any deduction;

 

iv)           No interest will be payable in cases where the allottee makes the total balance payment in lump-sum within a period of 60 days of issue of Regular Letter of Allotment (RLA), date of issuance of RLA to be excluded;

 

v)             Remaining 75% of the tentative price of the plot is to be paid in eight equal half-yearly instalments due on 30th June & 31st December;

 

vi)           Interest @ 12% p.a. shall be charged on the balance outstanding after ‘offer of possession’ of the plot/shed. Default in payment of instalments shall entail a penal interest @ 3% p.a. over and above normal interest rate of 12% p.a. for the defaulted period on the amount in default, compounded half yearly;

 

vii)          In a case where the allottee approaches HSIIDC for taking over physical possession of the plot in an area of which possession has not been formally offered on account of non-completion of basic infrastructure development works, the same may be allowed subject to the allottee furnishing an undertaking in the prescribed format that he would not raise any claims against HSIIDC on this account. As an incentive to such an allottee, he will not be charged any interest on his balance instalments till the possession is formally offered by the HSIIDC on completion of minimum basic amenities. However, in case of any default in payment of instalments on due dates, interest @ 15% p.a. will be charged on the amount of default for the period of default, compounded half yearly. The period for fulfilment of all obligations/conditions qua implementation of the project by the allottee shall count from the date of taking over physical possession of the plot by the allottee;

 

 

viii)         As regards existing allottees who have been allotted industrial plots/sheds before coming into force of EMP-2015, any additional price of the plot/shed, as a consequence of enhancement in compensation that has been/may be awarded by the Court(s) in any matters/cases arising out of the acquisition proceedings or any incidental or matters connected thereto, shall be payable by the allottee in lump-sum within 60 days from the date of issue of demand notice without any interest. In the alternative, the allottee shall have the option to make the payment on account

 

of enhanced cost in six half-yearly equal instalments due on 30th June & 31st December, with interest @ 12% p.a. on the balance amount outstanding. Default in

 

payment of instalments shall entail interest @ 15% p.a. for the defaulted period on the defaulted amount, compounded half yearly;

 

 

ix)           In the Enterprises Promotion Policy 2015, announced by the State Government, a decision has been taken that no enhancement will be charged in respect of industrial plots/sheds to be allotted by HSIIDC in future. HSIIDC was mandated to formulate a suitable scheme in this regard;

 

 

Accordingly, no enhancement will be charged by the HSIIDC from allottees who are allotted plots after coming into force of EMP-2015. However, the existing allottees who have been allotted plots before coming into force of EMP-2015 shall be required to pay enhanced cost on proportionate basis as per the terms and conditions of their allotment against enhancement in land compensation awarded/to be awarded by the competent courts;

 

 

x)            The allottee shall get the conveyance deed executed in his/her/its favour within six months of making payment of full price of the plot/shed, including enhanced cost, if any.

 

Note: In case the plot is allotted under the NRI/PIO categories, funds towards the price of the plot should come from his/ her NRE account/ remittances from abroad/ foreign exchange.

 

3.7         Processing Fee

 

a)            For allotment of plot

 

The applicant shall be required to deposit application on-line along with the non-refundable processing fee as hereunder:

 

Size of Plot  (Sq. mtr.)

Category ‘A’

Category ‘B’

 

Estates

& ‘C’ Estates

 

 

 

Up to 500

Rs. 5,000/-

Rs. 3,000/-

 

 

 

501-1050

Rs. 7,500/-

Rs. 5,000/-

 

 

 

1051-4050

Rs. 10,000/-

Rs. 7,500/-

 

 

 

4051-8100

Rs. 15,000/-

Rs. 10,000/-

 

 

 

8101 and above

Rs. 25,000/-

Rs. 15,000/-

 

 

 

 

b)            For all other services

 

Processing fee for other services, where ever payable as per EMP-2015, shall be charged at following rates:

 

Category of Estate

Processing fee

 

 

A

Rs. 10,000

 

 

B & C

Rs. 5,000

 

 

 

Note:  The processing fee will be inclusive of service tax, if applicable

 

3.8          Service Sector Enterprises

 

Considering the importance of service sector enterprises, it has been decided to allow activities of service sector enterprises directly providing services to the manufacturing enterprises. The following services which support the manufacturing activities in industrial estate/IMTs shall be eligible for allotment of industrial plots:

 

1

Repair, Maintenance and parking of machineries/equipment used for industrial

 

activities

2

Industrial/Technical Test lab

3

Industrial photography

4

Bulk courier services

5

Weigh bridge

6

Blue printing/drawing/computer designing facilities/drafting facility/CAD-CAM

7

Research & Development relating to industrial activities

8

Tool room for facilitation of industry

9

Media houses, printing, publishing services

10

Industrial kitchens/catering services

11

Engineering & Design services

12

Repair & maintenance, servicing of vehicles without any provision of showroom/

 

display of new vehicles

 

Upto 25% of the industrial plots may be earmarked by HSIIDC for service sector enterprises in its industrial estates, at its sole discretion.

 

 

CONTACT US

 

K.BEHARI & ASSOCIATES

 

[Project Consultants]

 

Kunj Behari Mahipal

 

C.Shekhar Mahipal (B.Com, LL.B Advocate)

 

 

 

ANAND SHANKER & COMPANY

 

[Chartered Accountants]

 

CA. Anand Shanker Mahipal

 


Contact Info: 

 

Mailing Address:

 

“DGM Building”
Old Court Road, Near Railway Crossing
SIRSA-125055 (HARYANA) INDIA

 

 

 

Phones & Mobiles:
Phone: +91(1666) 232543, 234565, 234022
Mobile: +91-9416-351-167, 9050-902-425

 

 

 

Emails:

Kboffice.india@gmail.com
kbaconsultants@hotmail.com
ca.anand@hotmail.com