MP readies new land allotment rules for industrial units

Madhya Pradesh government would redefine industrial land prices for investor community ahead of Global Investors Summit in October this year. Highly placed sources in the state government said that a draft of new land allotment rules have been given final shape and will be floated in public domain for seeking suggestions.

"To bring uniformity in prices and simplification in rules, a new land allotment rule draft is ready, it will soon go to higher authorities of the state government and later industry minister for comments, suggestions and further amendments," a government source said.

The state government, according to the source, has also plans to empower district industry centre officials for allotment of land even in case of large-scale industries.

Accordingly land prices will be now be fixed in accordance with the district collector guidelines. At present, board of directors of state industry department arm Audyogik Kendra Vikas Nigam (AKVNs) decide land prices, development charges, maintenance charges and other levies for industrial land.

"For example if an investors wants to set up an industry in rural area or "C" category backward district the land prices will be 10 per cent of the prevailing collector guideline rates. These charges would be levied one-time as premium. An annual maintenance charge will also be an additional cost of land which would be levied from the investor. In case of urban areas the government may charge 10 per cent of the commercial rates of the prevailing district collector guideline rates," the source said.

The district collector guideline rates are decided in order to generate revenue for the state exchequer and each year the state government revises these guideline rates only upwards.

"The new rules and rates would soon come up in public domain and state government would seek suggestions of the industry and incorporate adequate suggestions in the new rules," the source said adding, "the new land allotment rules will be announced during the Global Investors Summit to be organized in October this year."

Indore city will host the Global Investors Summit. State authorities have also planned to empower district industry center managers as ex-officio general managers of AKVNs. "This way they will have authority to see if the land is being used for industrial purpose," the source said. In most cases, another source said, investors who are interested in unscrupulous practices occupy industrial land and sell it later on higher prices.