New Policy Related to Sub-division of Industrial Plots in Uttar Pradesh | 18 Jun 2022

Why in News?

On June 17, 2022, the much-awaited new policy of sub-division of industrial plots for investment incentives and expansion of new industrial units in Uttar Pradesh was approved.

Key Points

• Uttar Pradesh State Industrial Development Authority (UPSIDA) has forwarded the revised policy to the Government for non-functional approval after the approval of its Board. At the same time, it has been implemented with immediate effect in anticipation of the permission of the State Cabinet. About 200-300 acres of unused large plots of land in Ghaziabad will be available to other entrepreneurs by constructing small plots.
• An official of the authority said that the board has decided to allow sub-division of plots on which the industrial unit has operated for at least four years. In some cases there is also a provision of exemption with conditions.
• If the sub-divided area is up to 25 acres, the recommendation of the committee constituted for the same will be approved by the CEO of the Authority. If the sub-divided area is more than 25 acres, it will be approved by the Authority Board.
• The Authority has approved the terms of application for sub-clauses in the policy, internal development, process of transfer, conditions of sale of divided plot, maintenance work, time permit for operation of the unit on sub-divided plot, sub-charge fee, sub-division fee, sub-division of Provisions have also been made for configuration and setting up of divided plots.
• The policy is expected to open the way for faster enterprise expansion in entrepreneurial families with expansion of active industrial units, industrial use of additional plots available.
• The main provisions of the policy are as under:
  • Those plots of 4,000 square meters will be sub-divided on which the unit has operated for 4 years. The plot should be on 18-meter road.
  • Plots of minimum 450 square meters can be created.
  • A phased time of 18 to 36 months will be given for internal development.
  • A maximum of 75percent of the allotted plot can be sub-divided.
  • The sale of plots will get 2 to 3 years. After this, there will be the facility of time extension.
  • The sub-division fee will range from 7.5 to 20percent at the prevailing rate. 50percent will have to be given at the time of approval and 50percent on completion.
  • The transfer fee on sub-divided plots will be 15percent of the prevailing rate in NCR and 10percent in separate areas from NCR.
  • Facilitate sub-division of the sub-partitioned plot as well with certain conditions.
  • Relaxation in the qualification of sub-division in the division of the plot belonging to the family-witness, maintenance till the time the common area is not surrendered.
• Relaxation will also be given in the case of sub-division of plot for projects falling under 'mega or more investment' as defined under various policies of the state government.