New rules to seize unused industrial plots | mumbai | Hindustan Times
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New rules to seize unused industrial plots

Concerned over industrial land parcels given to industry remaining unutilised, the state government plans to soon formulate rules to set a cut-off period for seizure of such idle plots.

mumbai Updated: Aug 30, 2010 01:20 IST

Concerned over industrial land parcels given to industry remaining unutilised, the state government plans to soon formulate rules to set a cut-off period for seizure of such idle plots.

“After allotment, some industrial plot owners sit on the land and do not start production. We plan to change the rules in Maharashtra so that at no stage does land remain unutilised,” said the state’s Industries Minister, Rajendra Darda.

Under the proposed changes, the state intends to stipulate a deadline by which production has to start, failing which the land will be seized by the state.

Andhra Pradesh is the only state in the country, which has a law stipulating a time-frame for production to start.

The changes will ensure that plot owners do not circumvent the law. Currently, landowners simply erect a skeletal structure on the plot, which protects their land from seizure, Darda said.

“They erect some basic structure but there is no production at the plot. This will not be allowed (once the rules are changed),” he said.

Under the old law, Maharashtra has so far made 200 seizures of industrial land parcels, Darda said.

Such unproductive use of land - one of the most important inputs for business - hurts the industrial growth of the state, he said.