Real estate developers’ body CREDAI has criticised the Maharashtra Government’s new industrial development policy saying there has been “insufficient allocation for residential use and lack of sops” for developing the Integrated Industrial Areas (IIA) which come under the new industrial policy.

The new policy allows an exit route for special economic zone (SEZ) developers whose projects have got struck due to issues like land acquisition or changes in tax laws by the Union Government by converting these into an integrated industrial township project, or an IIA. Under the new policy, developers will have to use 60 per cent of total land in possession for industrial purpose while the rest can be used for residential and commercial purposes. The earlier policy of the Union Government for SEZs stipulated 50 per cent land for industries and 50 per cent for residential and commercial purposes.

However, the president of CREDAI, Lalit Kumar Jain believes the allocation for residential use is far from optimum and would lead to poor response from the developers.

“We need to provide residential accommodation for whatever is the headcount involved in the industrial activity. By that account, the residential allocation should be for over 60 per cent. An allocation of 30 per cent for residential has no meaning and will fail to attract private developers.”

“Moreover, developers would not like to go to set up multi-product large projects in peripheral and far off areas without sufficient incentive such as subsidies especially when competitor states are offering cheaper power and water supply which are the fundamentals of the industry. These facilities combined with better connectivity through ports, roads and air transport is required to establish a growth centre,” he added.

Exit Strategy

However, some real estate consultants believe the policy should work by offering a good exit strategy for developers stuck in SEZ projects in the state.

Rohit Gupta, Associate Director – Agency Leasing Business and Industrial Services, said: “The SEZs were more or less non-starters; hence, the Government has changed the policy slightly and given 10 per cent more to industries. Thirty per cent of the total area of the industrial township has to be reserved for houses. This will allow developers of SEZs to virtually exit their original projects and build industrial parks, including residential townships. Another 10 per cent of the total township area is reserved for schools, colleges, shopping centres and other amenities.”

According to Jones Lang LaSalle, 15,000 hectares of land in Maharashtra have been “blocked” under SEZ and the new industrial policy provides a platform for withdrawal of 124 SEZs which have been “struggling” to take off. “The total land acquired for various SEZs in the State is close to 80,000 acre. Of which 25,000 acres will be available for constructing homes according to the new policy,” added a JLL report.

manisha.jha@thehindu.co.in

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