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Gandhinagar, Wednesday: In a first ever initiative of its kind, Gujarat Government today announced a novel ‘Participative Policy for Land Development in Industrial Estate', offering a slew of incentives for the affected landowners over and above the prevailing policies or practices elsewhere in the country.

The first policy, termed ‘Participative Policy for Land Owners in Industrial Estates', is to make the landowners as partners with GIDC in the economic growth on their land.

The other, termed ‘GIDC Developing Estates on PPP model', is to develop Industrial Estates on Public-Private Partnership (PPP) model on land purchased privately by Industries Associations.

Giving details of the new policy, Minister of State for Industries Saurabh Patel said the objective is to provide modern infrastructure facilities and utility services at Industrial Estates, Industrial Parks, Special Economic Zone (SEZ) and Special Investment Region (SIR) to match the enhanced expectations by the new players in the 21st Century.

With improved physical and social infrastructure, Mr. Patel said, Gujarat is a much better place to live in and work than a decade ago, owing to the Chief Minister Narendra Modi's foresight and leadership.

The twin new land development policy will be implemented by Gujarat Industrial Development Corporation (GIDC). It has been necessitated due to growing demand for land for up-and-coming for projects signed during the four editions of Vibrant Gujarat Global Investors Summit (GSSIS) already under various stages of implementation. It takes care of the industry demand as well as adequate compensation for the farmers selling their land.

Participative Policy for Landowners in Industrial Estates

  • In the participative policy, besides paying the landowners the market price of their land, GIDC will share with them the price at which it allots the developed land to the industrial units. Thus the landowners will continue to receive a share in the resources generated from the land of the industrial estate.

  • Under this policy, GIDC will acquire 80-90 per cent of the land with the consent of the landowners. The market price to be offered will be determined by CEPT University, ensuring neutrality and professionalism in price determination.

  • The land falling within 300 metres of the outer limit of the ‘gamtal' will not be acquired for the estate, but will be left for future expansion of the ‘gamtal', to let the landowner get the benefit of residential and commercial development of their land.

  • When GIDC transfer the developed plots to industry, it will pay to the landowners 10 per cent difference between its allotment price to industry and the price at which it has purchased the land from them.

  • The landowners will also be given developed commercial plot in the Industrial Estate built on their land to the extent of 1% (one per cent) of the land acquired at a token price of Rs.1 per square metre, ensuring the landowner continue to share the fruits of industrialization even after the transfer of the land by GIDC to industry.

  • Such landowner will be entitled to one time financial assistance equivalent to 750 days minimum agricultural wages for loss of livelihood (Rs.75,000).

  • A landholder who becomes a marginal farmer as a result of land acquisition will be entitled to one time financial assistance equivalent to 500 days minimum agricultural wages (Rs.50,000).

  • As per a Gujarat Government policy which allows a landowner whose entire land has been acquired under Land Acquisition Act to be considered as a landowner for up to two years after the acquisition, giving the landowner to purchase alternative land elsewhere within two years.

  • GIDC has, in its new policy, announced an ambitious scheme for capacity building and skill enhancement with a view to enable local people getting ample of employment opportunities.

  • GIDC will, at its cost, sponsor one person between the age of 18 and 45 in each family of landowner for training in ITI in a course for up to 2 years. The trainee will get stipend and expenses for the entire course, which is estimated to be about Rs.70,000 per trainee.

  • GIDC will also endeavour to obtain employment for one member of each landowner family who sell their land for industries.

  • GIDC will partner all the landowners who sell their land at the market price determined by CEPT University and share with them the resources generated from the estate.

  • GIDC will also share the proceeds with the Village Panchayats. 3% of the difference between GIDC's allotment price of the estate and the price at which it has purchased land from the landowners will be deposited in a separate bank account of the Village Panchayat. This amount will be utilized for pro-public projects in the villages.

GIDC developing Estates on PPP model

In the other policy, GIDC will not directly acquire the land, but will build industrial estates in partnership with Industrial Associations, which will purchase land directly from the landowners. This is mainly for setting up sector-specific estates.

  • For the Industries Associations in the state wanting to set up industrial estate/cluster by privately purchasing the land, GIDC will partner them upon receiving application from them. Such clusters can be set up in the manufacturing sectors like garment, plastic, pharmaceutical, foundry and others.

  • Small and medium category entrepreneurs can set up ‘Sector Specific Industrial Park' in the land of 100-200 hectares.

  • As per the new policy, GIDC will also assist Industries Associations in setting up of private industrial park/estate through suitable intervention in funding of land cost and in infrastructure development, without acquiring land.

  • For setting up of such Industrial Park in PPP mode, industries associations will have to form an association in the form of a legal entity for their specific sector and such entity would form a joint venture SPV Company with GIDC, in which each side would hold 50% share.

  • GIDC will give to the SPV Company up to 40% of the land cost as loan repayable in 20 quarterly installments. The remaining cost of the 60% of the land shall be contributed as equity into the SPV Company by both the partners (Industry Association and GIDC) in equal proportion. SPV Company will have to bare the expenses like NA conversion of the land, stamp duty, registration charge etc.

  • GIDC will plan the estate and develop the infrastructure at its own cost. This expense will be counted as a loan given by GIDC to the SPV Company. The SPV Company will market the estate and allot the land to its member industrial units.

  • GIDC will recover its equity investment and loan.

  • Name of the estate developed this way will include the word ‘GIDC' in order to give branding to the estate.

  • Ones at least 80% of the land gets allotted, GIDC will gradually take off from its responsibility of Operation and Maintenance (O&M).

  • GIDC will recover its investment within a time frame of five years from the allotment of the land to the first unit. After that it will transfer its shareholding to the entrepreneur association and exit the venture.

Expected benefits of these farsighted policies:

  • Accelerated industrial growth in the state.

  • Industry's demand for land will be realized.

  • Gujarat will become instrumental in showing a better alternate for avoiding disputes occur otherwise in allotting agricultural land to industries.

  • A professional CEPT agency will use an unbiased formula for determining the market price for acquiring the agricultural land.

  • Landowners, Village Panchayats will be benefited greatly due to such partnership.

  • A pool of Industry-ready youth will get prepared. Local people will get better employment opportunities.

  • Farmer family selling their land to industries will also get the benefits of industrial growth. Besides, proceeds will also be shared with village panchayats.

  • Rural Gujarat which is highly dependable on Agriculture will see a new era of economical activities-employment-skill building.

  • Small and medium entrepreneurs will get the opportunity for setting up of industrial estate/park in PPP mode with the help and fund of GIDC.

Commissionerate of Information, Gujarat
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