Mode of Allotment

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Chapter 3

Allotment of Industrial Plots

3.1       The allotment of industrial plots/sheds shall be governed by the provisions contained under this chapter as amended from time to time to ensure quick disposal of unsold inventory.

3.2    Reservation of industrial plots

i.              The reservation of industrial plots shall be available  as under:

a)             Up to 10% of the plots/sheds will be reserved in each Estate for allotment to NRIs/ PIOs and for units with 33% or more FDI in total investment. In case of NRI Plots, the entire amount towards the price of the plot has to be remitted through NRE Account of the applicant or in remittances from abroad/ foreign exchange. In the case of FDI, at least 33% of the Project Cost has to come from the FDI route. However, the 10% limit would not preclude allotment of plots in the FDI category as a part of the general scheme of allotment;

b)         Preferential allotment up to 2% of the plots/sheds in each Estate has been prescribed by the Government for allotment to persons with disabilities as defined in the Persons with Disabilities (Equal Opportunities, Protection of Right and Full Participation) Act, 1995. The Government has also prescribed    a differential rate of interest on instalments for this category (For complete details in this regard, Haryana Government Notification No. 49/40/07/4IBI dated 13.03.2007 may be referred). However, in case no applications are available from the eligible category, the un-allotted plots may be utilised under the general category.

c)          Any other reservation of industrial plots/sheds as may be decided by the State Government/HSIIDC from time to time.

ii.         Irrespective of number of industrial plots allotted under the above categories in the past, the number of plots reserved for future allotment shall be worked out on the basis of total number of plots available for allotment as on 30.09.2015.

3.3       Subject to the above, the allotment of Industrial plots shall be governed as under:

             Categories of Allotment:

a)         Mega Projects involving fixed capital investment (i.e. land, building, machinery & misc. fixed assets) of Rs.100 crore and above or projects involving employment generation of more than 500 persons and serving as anchor units for proliferation of ancillaries.

b)         Allotment under fast track scheme to Central/State  Government PSUs

c)         General, FDI/NRI and persons with disability category

d)         Any proposal for allotment of land to set up a project by any reputed foreign investor through 100% FDI route anywhere in the State, not falling under any other provision of EMP

3.4        Process of Allotment:

i.          Mega/ 100% FDI projects by reputed foreign investors category:

a)                   For Mega /100% FDI projects by reputed foreign investors, the identified land/plots measuring one acre and above size as per already approved layout plans will be offered for allotment through advertisement.  100% of the available plots of each sector / phase shall be offered for allotment in one go.

b)                   Where any entrepreneur approaches the HSIIDC with requirement of a chunk of land (which can either the specific/identified site/plot(s) or just indicating the size of the land required), larger than the available size as per approved layout plan, in such cases, upon receipt of such project proposals from the applicant/investor, after initial scrutiny, the HSIIDC shall invite applications for allotment of such chunk of land through advertisement.

c)                   Under both the above scenarios, a suitable time shall be given in the advertisement for submitting formal application as per procedure. In case, number of applications received are more than the number of offered plots in any plot size category or more than one application is received for a particular plot, allotment shall be made through e-auction in favour of the highest bidder; otherwise, the identified land/plot would be allotted to the applicant/investor through Higher Level Plot Allotment Committee/EEC at the price/rate applicable at the time of issuance of RLA.

d)                   The allotment of industrial plots under Mega projects category involving concessional rates with other incentives (a customized package) shall be made by Haryana Enterprise Promotion Board under the Chairmanship of Hon’ble Chief Minister/Haryana.

ii.         General / NRI / FDI / Persons with Disability Category Allotment:

a)             The applications for allotment of plots under this category  shall be invited through advertisement and  100% of the available industrial plots of each sector/phase shall be offered for allotment in one go;

b)             Suitable time period shall be given for submission of applications. The process of allotment of industrial plots, in respect of applications received in a particular month shall be finalized preferably in the next two months;

c)             In case, the number of applications received in any plot size category are less than or equal to the number of plots offered, all the applicants may be considered for allotment by the industrial Plot Allotment Committee and where the number of applications are more, the allotment shall be made through limited e-auction amongst the applicants;

d)            The applications for allotment of adjacent carved out plots to the existing plot holders shall be received by the Corporation along with other general category applications through advertisement. In case the number of applications received for any plot size category are less than or equal to the number of plots offered for allotment, the allotment of adjacent plots in such cases, to the existing allottees/plot holders shall be made on preferential basis at the time of draw of lots, on the allotment price prevailing at the time of issuance of RLA. In case more than one adjacent existing allottees are interested in the same plot, the allotment shall be decided through draw of lots amongst such applicants. In case the overall number of applications received in that plot size category are more than the number of plots offered for allotment, the allotment shall be made through e-auction between the applicants.

e)         The allotment of unplanned pockets/strips of land, adjoining allotted plots shall be governed as under:

a.            The applications for such land pockets shall be accepted from the adjoining plot holders through on-line mode against advertisement only;

b.            Before including the unplanned pockets/strips of land in the advertisement, the Planning Division of the Corporation shall certify that such pocket cannot be put to some other effective use by the Corporation or separate plot(s) could not be carved out of such unplanned pocket and allocate a distinct number to identify its location.

c.           Other process of allotment prescribed under EMP shall be followed in such cases also. In case, only one adjacent allottee applies against a particular plot/site, the allotment shall be made to such applicant on the prevailing allotment rate. In case, more than one adjacent unit/plot holders have applied for the same plot/site, the allotment shall be made through limited e-auction amongst such adjacent units/plot holders.

                               iii.        Central/State Government PSUs Category:

a)         The allotment of industrial plots to set up permissible projects by well-known Central / State Govt. Public Sector Undertakings, shall be made on fast track basis. The applications for allotment of plots under this category shall be received by the HSIIDC on on-going basis.

b)         The allotment under this category shall be made by MD/HSIIDC at allotment rate fixed/revised from time to time.

                              iv.        Specific Industry Clusters Category:

In case the HSIIDC receives proposal from any cluster/group of industrial units falling under a particular industry category seeking allotment of land for setting up/re-location of their units engaged in a specific trade, in HSIIDC Industrial estates as a cluster, involving aggregate investment of at least Rs.100 crore, the HSIIDC may carve out a special cluster for such industrial units. The procedure for allotment of industrial plots in such cluster shall be the same as for general category allotment.

v.         For allotment of industrial plots under all the above categories, the land requirement shall be justified and the value of land shall preferably not exceed 60% of the total fixed capital investment (Land, Building, Plant & Machinery and Misc. Fixed Assets). Further, the investment in plant & machinery shall not be less than 20% of the total fixed capital investment and the project proposed to be setup shall be falling under the permissible activities.  

vi.       In case the applicant who gives the highest bid under e-auction allotment scheme of the Corporation, but does not accept the allotment, the entire amount deposited by him towards the application money along with the application i.e. 10% of price of the plot at the reserve price shall be forfeited. Further, where the number of applications received are less than or equal to the number of offered plots and the allotment is made at the reserve price, in those cases also, if the applicant does not accept the allotment after issuance of RLA, the entire amount deposited by him towards the application money shall be forfeited. (The amendments in this clause have been approved by the Board in its 336th meeting held on 25.01.2017 and are applicable prospectively for applications to be invited in future)

3.5       Committees appointed for the purpose:

i)              For Mega projects  having  fixed  capital  investment (land, building, machinery and  misc. fixed assets) of Rs.100 crore & above or projects involving employment generation of more than  500 persons and serving as anchor units for proliferation of ancillaries, seeking allotment of plots at concessional rates with other  incentives (a customised package), allotment of industrial  land/ plot  shall be made   by the Haryana Enterprise Promotion Board (HEPB) under the  Chairmanship of  Chief Minister, Haryana. 

ii)         Allotment of Plots to (i) mega projects, without any concession and (ii) 100% FDI projects by reputed foreign investors as mentioned at 3.3(d) above shall be made by the Executive Empowered Committee under the Chairmanship of Principal Secretary to Chief Minister, Haryana or the Higher Level Plot Allotment Committee comprising of the following members:

1

Administrative Secretary of the Industries Department

Chairman

2

MD/ HSIIDC

Member- convenor

3

MD/HFC

Member

4

Director, Industries

Member

 

iii)         For categories of applications received under para 3.3.c above, the Committee will be as under:

1

MD/HSIIDC

Member

2

MD/HFC

Member

3

Director of Industries, Haryana

Member

4

MD/HARTRON

Member

Note:

The Senior-most member will act as Chairman of the Committee.  At-least one member, besides MD, HSIIDC should be present in all meetings to complete the quorum. Substitution can be made in extreme exigencies with an officer of the concerned Department /Organisation.

3.6       Payment Terms


i)          10% of the tentative price of the plot along with the application as earnest money (non-refundable in case of successful applicants in terms of clause 3.4(vi) above;

ii)         Balance towards 25% price of plot (after adjusting earnest money) within a period of 30 days of issue of RLA (date of issuance of RLA to be excluded), further extendable for 30 days with interest @ 13% p.a. for the extended period;

iii)         In the event an allottee fails to make payment  mentioned at ii) above, within 60  days  period (date of issuance of RLA to be excluded), the RLA shall automatically lapse and the amount deposited by the allottee towards  application money shall be forfeited. (The amendments in this clause have been approved by the Board in its 336th meeting held on 25.01.2017 and are applicable prospectively for applications to be invited in future);

iv)         No interest will be payable in cases where the allottee makes the total balance payment in lump-sum within a period of 60 days of issue of Regular Letter of Allotment (RLA), date of issuance of RLA to be excluded. As an incentive to such allottees, a rebate of 3% on 75% of principal cost of the plot, shall be admissible;

v)         In case the allottee does not opt to pay full cost of the plot in lump sum within sixty days, the remaining 75% of the tentative price of the plot is to be paid in eight equal half-yearly instalments due on 30th June & 31st December. In case, at any stage, the allottee clear the outstanding plot cost dues in lump sum, a rebate of 3% on such outstanding (principal portion) cost of the plot, shall be admissible;

vi)         Interest @ 11% p.a. shall be charged on the balance outstanding after ‘offer of possession’ of the plot/shed. Default in payment of instalments shall entail payment of delayed interest @ 13% p.a.  for the defaulted period on the amount in default, compounded half yearly;

vii)        In a case where the allottee approaches HSIIDC for taking over physical possession of the plot in an area of which possession has not been formally offered on account of non-completion of basic infrastructure development works, the same may be allowed subject to the allottee furnishing an undertaking in the prescribed format that he would not raise any claims against HSIIDC on this account. As an incentive to such an allottee, he will not be charged any interest on his balance instalments till the possession is formally offered by the HSIIDC on completion of minimum basic amenities. However, in case of any default in payment of instalments on due dates, interest @ 13% p.a. will be charged on the amount of default for the period of default, compounded half yearly;

viii)          As regards existing allottees who have been allotted industrial plots/sheds before coming into force of EMP-2015, any additional price of the plot/shed, as a consequence of enhancement in compensation that has been/may be awarded by the Court(s) in any matters/cases arising out of the acquisition proceedings or any incidental or matters connected thereto, shall be payable by the allottee in lump-sum within 60 days from the date of issue of demand notice without any interest. In the alternative, the allottee shall have the option to make the payment on account of enhanced cost in ten half-yearly equal instalments due on 30th June & 31st December, with interest @ 11% p.a. on the balance amount outstanding. Default in payment of instalments shall entail interest @ 13% p.a. for the defaulted period on the defaulted amount, compounded half yearly (The amendments in this clause are applicable w.e.f. 16.06.2016);

ix)           In the Enterprises Promotion Policy 2015, announced by the State Government, a decision has been taken that no enhancement will be charged in respect of industrial plots/sheds to be allotted by HSIIDC in future. HSIIDC was mandated to formulate a suitable scheme in this regard;

Accordingly, the allottees who are allotted plots after coming into force of EMP-2015 shall not be imposed proportionate enhancement in respect of the enhancement orders passed by the courts after the date of issuance of RLA in their favour. However, the existing allottees who have been allotted plots before coming into force of EMP-2015 shall be required to pay enhanced cost on proportionate basis as per the terms and conditions of their allotment against enhancement in land compensation awarded/to be awarded by the competent courts;

x)            The allottee shall get the conveyance deed executed in his/her/its favour with in one year of making payment of full price of the plot/shed, including enhanced cost, after clearance of all types of dues of the Corporation. In case of failure to do so, the execution of conveyance deed shall attract payment of stamp duty on the value of the property calculated at the prevailing collector rate in case the same is higher than the allotment rate plus applicable enhanced cost. In the existing cases where full cost of the plot/shed including enhanced cost, if any, has been deposited, the allottees can get the conveyance deed executed by 30.06.2017 after clearance of all types of dues of the Corporation, as per existing practice and thereafter the revised provision of payment of stamp duty shall be applicable. It is clarified that conveyance deed in favour of the allottee can be got executed through registered GPA of the allottee.

Note:    In case the plot is allotted under the NRI/PIO categories, funds towards the price of the plot should come from his/ her NRE account/ remittances from abroad/ foreign exchange.

3.7       Processing Fee

a)         For allotment of plot

The applicant shall be required to deposit application on-line along with the non-refundable processing fee as hereunder:

Size of Plot  (Sq. mtr.)

Category ‘A’ Estates

Category ‘B’

& ‘C’ Estates

Up to 500

Rs. 5,000/-

Rs. 3,000/-

501-1050

Rs. 7,500/-

Rs. 5,000/-

1051-4050

Rs. 10,000/-

Rs. 7,500/-

4051-8100

Rs. 15,000/-

Rs. 10,000/-

8101 and above

Rs. 25,000/-

Rs. 15,000/-

 

b)            For all other services

 

Processing fee for other services, where ever payable as per EMP-2015, shall be charged at following rates:

Category of Estate

Processing fee

A

Rs. 10,000

B & C

Rs. 5,000

 

Note:  The processing fee will be inclusive of service tax, if applicable

 

3.8       Service Sector Enterprises

 

Considering the importance of service sector enterprises, it has been decided to allow activities of service sector enterprises directly providing services to the manufacturing enterprises. The following services which support the manufacturing activities in industrial estate/IMTs shall be eligible for allotment of industrial plots:

 

1

Repair, Maintenance and parking of machineries/equipment used for industrial activities

2

Industrial/Technical Test lab

3

Industrial photography

4

Bulk courier services

5

Weigh bridge

6

Blue printing/drawing/computer designing facilities/drafting facility/CAD-CAM

7

Research & Development  in any field

8

Tool room for facilitation of industry

9

Media houses, printing, publishing services

10

Industrial kitchens/catering services

11

Engineering & Design services

12

Repair & maintenance, servicing of vehicles without any provision of showroom/ display of new vehicles

13

Skill Development Centers


Up to 25% of the industrial plots may be earmarked by HSIIDC for service sector enterprises in its industrial estates, at its sole discretion.

3.9       Allotment of plots on leasehold basis in Mega Food Park, Phase-III, Barhi

            The allotment of plots on leasehold basis in Mega Food Park, Phase-III, Barhi under the norms of Mega Food Park Scheme of Ministry of Food Processing Industries, Govt. of India shall be governed by the following terms and conditions:

i)              Allotment under lease hold basis shall be governed under the Mega Food Park Scheme alongwith the provisions of Estate Management Procedures (EMP-2015) of HSIIDC with regard to extension, timely implementation of the project, transfer etc. as applicable in case of regular allotment of plots/sheds, except for those norms for which specific clause/norms have been mentioned.

ii)             The land/shed shall be allotted on lease hold basis on payment of Land Premium equivalent to the tentative cost of the plot/shed i.e. prevailing allotment rate of HSIIDC for the said Phase/Estate. The initial lease period shall be ten years. The allottee will be eligible to get it converted to freehold after completion of lease period of ten years on payment of nominal charges, subject to the lessee having remitted entire outstanding dues and compliance of the terms of allotment of plot.

iii)            The Land Premium shall be payable in 8 half yearly instalments with applicable interest thereon. In case of default in making payment of instalments on due date, applicable interest shall be charged on the amount of default for the period of default, compounded half yearly.

iv)            Yearly economic lease rentals @Rs. 2.50 per sq. mtr., per annum effective from the date of allotment on lease hold basis with an increase of Rs. 1/- per sq. mtr., on an annual basis shall be charged.

v)             The lease rentals shall be payable on annual basis; with first lease rental payable within 30 days of commencement/date of lease and payable on similar pattern for subsequent years; failing which penal interest with half yearly compounding shall be applicable.

vi)            The industrial plot shall continue to be utilized for the approved project and shall be governed by any norms prescribed by the Ministry of Food Processing Industries (MOFPI), Govt. of India, under the Mega Food Park Scheme (MFPS). In case of discontinuance of the said project, the lease deed shall be terminated.

vii)           Maintenance charges shall be payable by the lessee on actual basis. The charges for electricity, water, sewer etc. shall borne by the lessee. Service tax etc. wherever applicable shall be payable by the lessee.

viii)          The lessee shall execute lease deed with the Corporation containing the terms and conditions mentioned as at the time of allotment under lease hold basis alongwith other conditions. The lease period shall commence from the date of conveying the allotment of industrial plot on lease hold basis and obligation and labilities under lease agreement shall be deemed to have commenced from that date.

ix)          The Corporation reserves the right to cancel the deed and terminate the allotment, disconnect the water supply and forfeit the amount of lease rentals remitted on account of non-adherence of Estate Management Policy Guidelines of the Corporation.

x)            All the expenses towards the registration of lease shall be borne by the lessee.

xi)           The period for fulfilment of all obligations/conditions qua the implementation of the project etc. by the lessee shall be as per the terms applicable for the regular allottee under EMP-2015 guidelines.

xii)          The original lease deed where land Premium equivalent to the plot cost has been paid, may be allowed for mortgage.