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Nearly 9,567 hectare will now be thrown open for the development of Integrated Industrial Area (IIA) in Maharashtra. The land, which was originally acquired both by the private developers and state undertakings in joint venture, will now be offered for IIA.
The state assembly on late Wednesday night passed an amendment to the Maharashtra Industrial Development Act, 1961 whereby the SEZ, which could not take off, can be converted into the IIA. However, it will be binding on the promoter to use 60% land for industrial use, 30% for residential and 10% for the commercial purpose.
Maharashtra industries minister Narayan Rane said the state continues to be the most favoured investment destination. The amendments will further help increase investments. He reminded that the state government's New Industrial Policy announced in January had proposed the 60:30:10 formula for land use in the IIA.
Rane clarified that the amendment was not intended to benefit builders and developers. He mentioned that the government will keep a proper vigil on the 60% use for industrial use by the promoter. The developer will have to create social infrastructure such as school, college, hospital, play ground and housing stocks in the balance land.
C S Deshpande, an economist tracking Maharashtra's economy told Business Standard "The crux of the act lies in its implementation and in ensuring that balanced industrial development especially in the hitherto backward regions of the state takes place. At the same time it is necessary to exercise extreme vigilance and care that the land ones allotted is actually utilized for industrial use."
The new industrial policy targets a Rs 5 lakh crore investments and jobs for 2 million during next five years. Further, the policy, which focuses on the promotion of micro, small, medium scale (MSME) enterprises in the state, offers 100 per cent rebate VAT to mega projects with an investment of Rs 500 crore and also to MSMEs especially in naxalite and tribal infested districts, 90 per cent in under developed districts such as Chandrapur in Vidarbha, Nandurbar in North Maharashtra and districts from Marathwada region.
A senior minister said that when land acquisition faces major hurdles a large parcle of already acquired land can be put for industrial use. He added the new industrial policy and the amendments to the Maharashtra Industrial Development Act, 1961 were quite timely to face competition from states especially in the western region.
