Maharashtra govt to take back unused industrial land

The Maharashtra Cabinet on Tuesday decided that henceforth if entrepreneurs acquire land to start an industry but fail to use it for the purpose within 10 years, then the government will take back the land and return it to the farmers.

This decision, however, will not be applicable to the entrepreneurs, who have not acquired land, but have so far failed to start an industry.

“Henceforth, if entrepreneurs fail to start industries even in 10 years, the government will take away the land from them and give it back to its owner (farmer),” Maharashtra Revenue Minister Eknath Khadse told reporters here.

So far, there was no provision to give back land to farmers and hence the decision is important, he added.

“The Cabinet has reduced the stipulated period by five years. Entrepreneurs can start actual production within a period of five years from the date of purchase of land. If he fails to do it, he will be given an extension of another five years to start production, on a condition, he would have to pay two per cent surcharge every year calculated on the cost of land,” Khadse said.

Speaking separately, state industries minister Subhash Desai said, “The decision will be applicable only to the revenue land.”

According to the existing provisions, a person who purchases a non-agriculture land, should start an industry within 15 years.

"However, it has come to the notice of the Industries Department that several industrialists have not started production and instead some of them have changed the purpose of land from industrial to residential," Khadse said.

According to an official from the Industries Department, 90,000 hectares land is in the custody of MIDC.

However, Desai informed that more than 16,000 hectares of land is lying unused and has been taken over by the industry houses without starting production.

The decision will not be applicable from retrospective effect. Hence the industry houses that have purchased the land from farmers for industrial purpose and failed to launch it during the last 10-15 years, will not be penalised.

"We will not take action against those, who have failed to start their industries since the last decade. The decision will be applicable to those industries, who will purchase private land from farmers. These lands belong to Revenue Department," Khadse said.

Subhash Desai said, "Revenue and MIDC laws are different and today's decision is not applicable to industries in MIDC area."

According to provisions in the MIDC law, entrepreneurs have to start industry within two years from the allotment of land. Later they have to pay a premium.

In the last one year, notices have been sent to 4000 industrialists who failed to start an industry and more than 1700 plots have been taken back from industrialists," Desai said.