The Maharashtra Industrial Development Corporation (MIDC) has issued a new circular to amend the procedure for determining the rate of allotment for industrial land. This amendment, aimed at making the rate determination process more accurate and cost-effective, comes in response to discrepancies identified in the previous method outlined in the circular dated February 21, 2019.
Background of the Amendment
The original circular from 2019 specified that the total land cost should include 6 percent of the establishment cost of the collector on acquisition cost and 3 percent on expenditure related to joint measurement and contingencies. These percentages were added to the actual land acquisition cost to determine the overall cost for entrepreneurs looking to set up in the industrial sector.
However, recent reviews revealed inconsistencies in the actual costs incurred during joint measurement, indicating a 3% discrepancy. This discrepancy prompted MIDC to revise its approach to ensure more accurate and fair cost assessments.
Key Changes in the Rate Determination Process
Under the newly issued circular, MIDC has outlined specific changes to address these discrepancies:
- Removal of the 3% Levy: The circular eliminates the additional 3 percent charge previously applied to the land acquisition cost for joint measurement and contingencies. Instead, it mandates that only the actual expenditure incurred during joint measurement be included in the cost calculations.
- Adoption of Actual Costs: The amendment emphasizes using actual incurred costs for joint measurement rather than estimated percentages, ensuring that the rate determination is more reflective of the true expenses faced by MIDC.
- Revised Standard Table: The standard table used for determining the rate of allotment of plots in the industrial sector will be updated to incorporate these changes. This revision aims to provide a more accurate and transparent framework for entrepreneurs seeking land for industrial use.
Impact on the Industrial Sector
These changes are expected to make the rate determination process for industrial land more scientific and precise, thereby reducing the financial burden on entrepreneurs. By focusing on actual costs, MIDC hopes to foster a more favorable environment for industrial development, promoting growth and investment in the sector.
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The amendment to the rate determination process for industrial land allotment by MIDC is a significant step towards ensuring fairness and transparency. By aligning the cost calculation with actual expenditures, MIDC demonstrates its commitment to supporting the industrial sector’s growth while safeguarding the interests of entrepreneurs.