What to choose GIDC Land or Private Land for Industry?
Industrial Growth in Gujarat has seen a tremendous upward trend in the recent times due to the proactive governance of the state Government and conducive infrastructure and clearance policy has greatly helped Gujarat race ahead of other states of India.
Recently declared by the World Bank that Gujarat Tops the list of state for Ease of Doing Business is because of all those factors stated above. The major hurdle any Industry faces while setting up a unit is acquiring land.
Tips from Selecting GIDC Land or Private Land for Industry
Acquisition of land in Gujarat is very easy with the support of Government of Gujarat, but before going ahead with the project one should keep the following things in mind.
Do a proper survey of the location of the land before finalizing.
Zones for Setting up an Industrial Unit:
Check the zoning of the land. Double check with the authorities under which zone the land falls. In Gujarat there are different zones identified by the government for setting up an Industry. The rules and regulation will defer from zone to zone. Ex. In chemical zone you can only set up Chemical and allied product Industry. You cannot setup an Engineering or Garment unit in this zone.
The various zones identified by the government are: Chemical, Pharmaceutical, Engineering and Allied Services, Plastics, Garments and Textile, General Industrial zone etc.
Acquiring the Land:
You can buy two types of land to setup and Industry. Private land or GIDC land. There is a vast difference in acquiring those lands in Gujarat.
Private lands are those lands which are owned by its original owners / farmers. These were originally used by farmers for farming and cattle feed. The purpose of land use should be changed from farming to Non Farming. In other words this process is called converting from Agricultural to Non Agricultural.
In Gujarat a Non Farmer cannot buy a farming land, to buy such land the land first needs to be converted into Non Agricultural Land (NA Land). This process usually takes 6 to 8 months time depending on the size of land and number of land survey numbers associated for conversion. Only after the conversion is done those lands can be purchased by a non farmer or General public in Gujarat.
For easing up the process for setting up an Industry in Gujarat, these lands can be converted into Industrial NA land. There are rules and regulation to be followed up which are setup by the Government Authorities to get the land converted into Industrial NA and then using it.
Land / Plot in Industrial / Logistic Park:
You can also buy a land / plot in privately owned Industrial Park. Those chunk of lands are bought by a person / company who are farmers and can buy such agricultural lands. Then those developers get the land converted to Non Agricultural and then the plotting project is floated by such builders / developers, wherein you get all the latest facilities like drainage, water, electricity, security, manpower support, logistic support etc. The rates are quite competitive as compared to GIDC rates and yet you get a pre approved land for setting up an Industry.
These lands are quite affordable as compared to GIDC Lands, but the process and procedure is time taking. So if you are in a hurry to set up and Industry you need to check with GIDC office for buying GIDC land.
Government of Gujarat has acquired huge chunk of lands from farmers and private land owners for setting up GIDC’s / Industrial Clusters.
This land comes with all pre approvals from the State Government for setting up an Industry. You just need to submit the project report before the GIDC Office for acquiring such land. There are rules and regulations to follow, for getting such land from GIDC. But the process and procedure becomes much easier. Although GIDC rates are higher as compared to private lands.
For acquiring land from GIDC you first need to make an online application to the GIDC which is followed by physical submission of application form along with the demand draft of security fees.
After this the project report along with the presentation is to be given to the screening committee and based on this the final approval will be given.
Once the approvals are sought then the agreement is executed along with the payment.
You cannot own GIDC land on ownership basis. They are allotted on a 99 years lease basis and further it can be renewed for 99 years.
There are certain penalties levied upon by the GIDC on the owner for non use of the land / plot if construction and manufacturing / production is not started within the given time frame.
- Hence it is very important to check all the aspects before finalizing and setting up the unit.
- The most important is checking of zone for industrial setup and the land status.
- Consideration of purchase / set up cost against the rental cost.
- Identifying proper land between GIDC and Private land owner outside GIDC.