Maharashtra's industrial policy: Realtors cry foul too

Opposing Maharashtra’s new Industrial policy which allows an exit option for SEZs, developers Apex body Credai said today that the move will cause urban chaos as there is “insufficient allocation for residential use and lack of sops” for developing the Integrated Industrial Areas.

Under the new policy, which will be effective for a five year period beginning April 1, developers will have to use 60 percent of total land in possession for industrial purpose while 30 percent can be used for residential and 10 percent for commercial purposes. This will allow developers of SEZs to exit their original projects and build industrial parks, which include residential townships too.

[caption id=“attachment_582325” align=“alignleft” width=“380”] New policy will allow This will allow developers of SEZs to exit their original projects and build industrial parks, which include residential townships too. Reuters[/caption]

However, the president of Credai, Lalit Kumar Jain believes the allocation for residential use is far from optimum and would lead to poor response from the developers.

Jain pointed out that the solution lies in providing innovative housing solutions like increased FAR or FSI, rather than forcing conversion of agricultural lands for housing as is happening in the SEZ exit policy.

“It is necessary that policy makers understand that every industrial or commercial activity needs to be supported by residential infrastructure either within or near the business activity,” Jain said in a statement today.

Even though he welcomed the state government’s intent to generate higher employment, he noted that the conversion of SEZ seems to be going nowhere.

On the issue of Opposition parties objecting the SEZ exit policy on grounds that it will only benefit industrialists and developers by acquiring prime land at low prices, Credai defended its case by saying , “It is rather surprising that for petty political gains some people lose wisdom.”

In SEZ zones, industries enjoy benefits of both direct and indirect taxation, apart from provision for 50% non-processing units, all with just one-rupee-surplus-export formula which is not allowed under the integrated industrial township plan. In such a scenario, no developer with any business sense will opt for the township plan, he said, adding that “At best the policy will benefit few influential industrialists.”