DELHI: The Noida Authority has decided to do away with a policy that provided industrial plot allottees extended periods for setting up functional units. This clause allowed allottees to pay insignificant amounts as penalties in lieu of delay in running units. The move is expected to put industrial development on the fast track.
The city’s industrial association said that according to the latest scheme launched by Noida Authority for allotment of industrial plots, allottees would not be allowed to hold on to their plots after three years if they do not set up functional units. The Authority recently launched a scheme for allotting industrial plots in Phase-II and Phase-III industrial areas through a lucky draw scheme.
Industries affiliated to the Noida Entrepreneurs’ Association (NEA) said that the move will help improve industrialization in the city as it will prohibit purchase of industrial plots for investment in land. The association said clauses in the scheme, however, confer upon the Authority the right to allow for extensions in genuine cases. “This would ensure protection for genuine investors who want to set up functional units,” said Vipin Malhan, president, NEA.
At the same time, the association claims that setting up functional units within a set time period would not be a constraint for well-financed investors. Industrialists said there were delays earlier in setting up functional units because the Authority used to allot industrial plots in those sectors that were not well-developed in terms of infrastructure, like roads, water or electricity. “The region where plots are being allotted at present are in well-developed sectors with all back-up facilities needed for industries,” said Malhan.