HOW TO GET A PLOT IN MIDC INDUSTRIAL AREA?

You may be keen to know the answers to many questions in connection with the allotment
procedure. Here are some very pertinent questions and their answers.

• Why should I come to MIDC for industrial land?

• What kind of activities can I undertake in MIDC area?
• Whom should I approach for allotment of land?
• What are the preparations required to be made by me as an entrepreneur while
applying for the plot in MIDC area?
• How should I apply for a plot of land in MIDC area?
• What is the process fee?
• When is the offer letter issued?
• What is the next step?
• When is the Allotment Letter issued?
• When can I get possession of the plot?
• Can I mortgage the plot for getting the financial assistance?
• How to execute the Agreement to Lease?
• Who can execute the Agreement to Lease?
• As an allottee, what is expected from me?
• Who are the Planning Authorities?
• When is the Final Lease Executed?
• How to obtain the extension in time limit for completion of the project?
• What is Land Allotment and Grievances Committee? How can it help me?

Q Why should I come to MIDC for industrial land?

A Because there are many advantages if you locate your industry in MIDC area. The details are as
follows:

• No separate non-agriculture permission is required.

• Clear title of land is assured.
• The land is owned by the State Government and allotted on 95 years leasehold tenure.
• Filtered water supply to plot is assured by MIDC through its own water supply schemes.
• Power supply is easily available from MSEB.
• MIDC constructs ready built sheds/ galas for small entrepreneurs and for electronic
industries.
• Separate zones are earmarked to accommodate

Engineering/ Chemical/ Electronic industries/ Food / Software / Silver / Wine / Textile / Floriculture /
Gems & Jewellery.

• Plots are carved out to accommodate small, medium and large scale industrial units as well
as commercial complex and with various amenities, in a well-planned layout and congenial
atmosphere.

Q What kind of activities can I undertake in MIDC area?

A You can undertake any of the following activities in MIDC area:

• New industrial venture in small, medium or large-scale sector;

• Expansion or diversification of the existing industrial unit;
• Shifting of existing industrial unit;
• Service industry / commercial venture like industrial warehousing, canteen, petrol pump,
shop, health service, recreational facilities which would support the industrial units;
• Industrial housing for workers and executives;
 • If you are planning any of the above activities, please come to MIDC.
• We would be glad to offer you a plot or a shed or a gala to suit your requirement.

Q Whom should I approach for allotment of land?

A The statement below gives details of the authority and the requirements for which it can be
approached.
Allotment Authority Requirements

Joint Chief Executive Officer/ i) Plots beyond 20,000 sq.metres in all MIDC Industrial Areas.
Deputy Chief Executive Officer
iii) Plots for non-industrial use or chemical industry in any
industrial area in the state.
Regional Officer, concerned region, Plots up to 20,000 sq.metres in Thane, Mahape (Navi
MIDC. Mumbai) Pune, Sangli, Mahad, Ratnagiri, Kolhapur, Nashik,
Aurangabad, Latur, Amravati and Nagpur Regions
General Manager, District Plot up to 2,500 sq.metres in respective district. Where MIDC
Industries Centre (D.I.C) of Regional offices are not there.
concerned district

Q What are the preparations required to be made by me as an entrepreneur while

applying for the plot in MIDC area?
A Before making an application for a plot in MIDC area, please prepare a brief project profile
covering the following points:

a) Brief details of the product to be manufactured. If of Chemical nature, detail

manufacturing process with flow chart and block diagram in respect of utilization of
land.

b) Requirement of the area.

c) Proposed built up area for the factory, godown, open storage for raw material, if
any.

d) Future expansion, if any, and construction details for the same on the above
lines.

e) Water requirement for manufacturing / processing and domestic use.

f) Quantity of effluent discharged in case of chemical unit (processing and domestic

separately).g) Investment in land, plant and machinery.

Within 15 days after receipt of "Offer letter" you have to pay 50 % Earnest Money
Deposit and therefore, you should keep sufficient funds ready.

Q How should I apply for a plot of land in MIDC area?

A As a first step, you have to apply in the application form popularly known as "White Application
form" along with the following documents: (Please read the guidelines (Page No.11) carefully
before filling in the application form).

a) Covering letter.

b) Project profile in brief (if project of chemical nature, detail project repot with type
and quantity of effluent.)

c) Block-plan (Schematic) of proposed construction.

 d) Copy of the partnership deed with its registration, if it is a partnership firm.

e) Copy of registration certificate with copy of bye laws, if it is co-operative society

f) Copy of Memorandum and Articles of Association with its registration, if it is a Pvt.

Ltd./ Public Ltd. Co.

g) Process Fee by Demand Draft in favour of Maharashtra Industrial Development

Corporation.

If you are applying in the capacity of a chief promoter of a proposed private limited
or a public limited company, you should clearly mention the fact in your application.
If you are applying on behalf of a group of companies and if at the time of making
application, it is not known as to which of the companies from your group will
implement the project or promote a new private/public limited company, you
should clearly mention this in your covering letter and also enclose list of
companies which are likely to take part in implementation or promotion of a new
company.

Please get the acknowledgment receipt from the concerned authority when you
submit your application for offer letter.

There are different forms for other institutional activities and residential plots.

Q What is the process fee?

A The process fee is a nonrefundable fee, which is required to be paid along with application for offer
letter to cover the preliminary expenses regarding scrutiny of the application. The process fee is to
be paid by Demand Draft only in favour of Maharashtra Industrial Development Corporation. The
present rates for process fees are as follows:
a) Galas, sheds & open plots upto 1,000 sq.metres Rs. 300/-

b) Plots from 1,001 sq.metres to 5,000 sq.metres Rs. 550/-

c) Plots from 5,001 sq.metres to 10,000 sq.metres Rs. 1,050/-

d) Plots from 10,001 sq.metres to 20,000 sq.metres Rs. 2,050/-

e) Plots from 20,001 sq.metres to 40,000 sq.metres Rs. 3,050/-

f) Plots from 40,001 sq.metres and above Rs. 5,050/-

Q When is the offer letter issued?

A The offer letter is normally issued within 15 days from the date of receipt of application for offer
letter. Within this period, your requirement as well as availability of land and water at the location
are considered and decision is taken by the “Land Allotment Committee” to offer land.
Offer letter is valid only for a period of 15 days from the date of its receipt and automatically lapses
at the end of 15 days. However, Allotment Authority is competent to revalidate the offer letter at the
premium rates in force at the time of revalidation provided a suitable plot is available.
Q What is the next step?
A Along with the offer letter you will receive the Application for Allotment Letter or "Blue Application
Form" duly affixed with special adhesive stamp. This final application duly completed in all respects
should be submitted by complying following:
 a) Demand Draft payable to Allotment Authority for the full amount of Earnest
Money Deposit (EMD) as indicated in the offer letter. (50 percent of the total
premium amount).

b) In case of an existing partnership firm or a Private Limited Company, the

applicant should apply as a Partner or as a Director. For a proposed Pvt. Ltd. Co.,
the applicant should apply as a promoter.

Q When is the Allotment Letter issued?

A The concerned office of MIDC will issue the allotment letter within 15 days from the receipt of your
application along with E.M.D.
In case you do not receive the Allotment Letter within 15 days, please get in touch or write to the
concerned office.
The allotment letter indicates the allotment of the specific plot with plot number and area of the plot
in sq.metres
The allottee is expected to pay the balance occupancy price (50 per cent of the total premium
amount) for the plot allotted to him within 30 days of the receipt of the allotment letter.
Please comply with other conditions as mentioned in the allotment letter:

a) Balance occupancy price is expected from the allottee within 30 days and in case
of delay beyond 30 days, the allotment is liable to be cancelled.

b) However, if the allottee has difficulty in paying the balance occupancy price
within the stipulated period, he may request the authority concerned for extension
of the period for payment.

c) Allotment authority is empowered to give extension for payment of occupancy

price upto a maximum period of 150 days after charging interest for delayed
payment at the prescribed rate for the extended period beyond 30 days. At
present, the rate of interest is 12 ½ percent per annum. But the amount of interest
will be paid by allottee in advance. Thereafter the extension in granted.

d) After obtaining extension, please pay the occupancy price within that extended
period.

e) Failure to make payment of balance occupancy price within 180 days from the
date of receipt of allotment letter results in automatic cancellation of the allotment
of the plot and the Earnest Money Deposit paid by the applicant is refunded after
deducting 5% service charges.

Q When can I get possession of the plot?

A After you have paid the full occupancy price (together with interest for delayed payment, if any)
the concerned Regional office of MIDC or General Manager, District Industries Centre (DIC) would
arrange to hand over the possession of the allotted plot. Simultaneously, Agreement to lease in
executed duly paying stamp duty within 60 days. If the allottee fails to execute Agreement to lease
within time period of 60 days (the date of possession will be taken into consideration for counting
the time scheduled) the allotment cancelled.
Q Can I mortgage the plot for getting the financial assistance?
A Yes, you can. You may approach the concerned Regional Officer of MIDC, who will issue a Consent
Letter on furnishing a copy of the sanction letter for the loan and the mortgage of MIDC plot is
normally permitted in favour of State Level Financial Institutions, National Financial Institutions,
Nationalized Banks and Co-operative Banks.
However, the permission for mortgage of MIDC plot in favour of individual person or private money
lending institutions is not granted.
MIDC has entered into a bi-partite agreement with the National and State Level Financial
Institutions, authorizing the concerned financial institutions to hypothecate the MIDC plot without
making separate agreement in respect of allotted plot. Similarly, there is no need to obtain a fresh
permission for the mortgage at the time of granting additional term loan. In such cases, a written
communication regarding additional term-loan is required to be sent to MIDC within 30 days of the
disbursement of additional term loan.
Sometimes, requests for “Second charge” are received from Banks in respect of Working Capital
loans sanctioned by them. Such requests are granted on production of No Objection Certificate from
the concerned term-lending institutions.
The other condition is that the allottee, should have completed the construction of factory building
and gone production or the plant and machinery are installed or likely to be installed.
Q How to execute the Agreement to Lease?
A After receiving the balance amount of occupancy price (i.e. remaining 50 per cent of the premium
amount) within stipulated time, a mutually convenient date and time will be fixed by the concerned
Regional Office of MIDC / DIC for execution of the Agreement to Lease.
Agreement to Lease is to be executed in duplicate in the prescribed form. The allottee has to pay
stamp duty as per stamp duty act and excite the documents of Agreement to lease within 60 days.
Q Who can execute the Agreement to Lease?
A a) Proprietary Firm:
In case of proprietary firm, proprietor himself has to execute in his individual capacity.
b) Partnership Firm:

(i) In case of an existing and registered partnership firm, all the partners except
minors will have to remain present for the execution of Agreement to Lease.

(ii) If any one or more partners are not available, remaining partners can execute
the Agreement to Lease provided they hold duly authenticated and specific power
of attorney.

(iii) If the application is made in the name of promoter of proposed partnership firm,
a certified copy of Partnership Deed along with registration proof and a specific
letter from the applicant (i.e. promoter) regarding transfer and execution of
Agreement to Lease in the name of Partnership firm should be produced.

c) Private Limited / Public Limited Company:

(i) In case of companies incorporated under Companies Act, 1956, a director or

directors or any other person authorised by the Board of Directors of the Company
can affix company's seal to the Agreement.

(ii) Authorization of the directors is to be in accordance with provisions of the seal,

clause contained in the memorandum and articles of Association of the Company.

(iii) Company's resolution to the effect to be furnished.

(iv) If the application is made in the name of Promoter of the proposed Private
Limited Company and Party desires to execute the Agreement to Lease in the name
of Private Limited Company, a certified copy of the Memorandum and Articles of
Association, certified copy of Certificate of Incorporation, Chartered Accountant's
Certificate, certifying the issued and paid up capital and shareholding etc. and also
specific letter from the original applicant (i.e. promoter) regarding transfer and
execution of Agreement to Lease in the name of company should be produced.

d) Co-operative Societies and other institutions:

Persons authorised as per bye - laws or the constitution of such societies or institutions can execute
the Agreement. If Co-operative Societies are registered under Societies Registration Act, all the
members of the governing Body of such Societies can execute the Agreement.
e) Public /Private Trusts:
All the trustees of the trust have to execute the Agreement.
Please Remember:

(i) Company’s seal or rubber stamp of the concern and individual/s should be kept
ready while executing the Agreement.

(ii) The Agreement to Lease is to be signed in the presence of two witnesses.

Q As an allottee, what is expected from me?
A Once the Agreement to Lease is executed, the possession of the plot is handed over by
demarcating boundaries of the plot on site. A possession receipt is also issued to the allottee.
The plot is to be utilized as per the clauses of the Agreement to Lease within a period of 03/04/05
years from the date of taking over possession of the plot, if the plot is situated in A& B, C & D +
zone respectively. The allottee is expected to undertake following steps:

a) Get the approval of building plans from the concerned "Special Planning
Authority" (i.e. Executive Engineer in charge of that industrial Area.)

b) Complete the construction of the building as per the approved plan.

c) Obtain Building Completion Certificate (B.C.C.) from the concerned Planning

Authority.

d) Start to use the built-up premises constructed on the plot by installing plant and
machinery.

e) Before construction of the building, if the location of MIDC area falls within
Mumbai Metropolitan Region, No Objection Certificate (NOC.) is required to be
obtained from the Technical Adviser of MIDC.

f) The allottee should ensure to adhere to the schedule mentioned in the

Agreement to Lease and obtain B.C.C.within the stipulated period. However, where
the plot holder is not able to obtain B.C.C. within the stipulated period, extension
beyond time limit (i.e. 3 / 4 / 5 years) has to be specifically obtained from the
Regional officer of MIDC. Extension in time limit is not granted as a matter of
routine course, but it is granted after ascertaining the merit of the request as well
as the effective steps taken by the allottee for implementing the project. Failure to
obtain B.C.C. within the stipulated period of 3 / 4 / 5 years (or extended period if
such extension is granted) w ould result in cancellation of the allotment and MIDC
would take back the possession of the plot. The amount of Occupancy Price paid by
the allottee will be refunded after due deductions.

Q Who are the Planning Authorities?

A All the industrial areas developed by MIDC have been declared as notified areas under MR & TP
Act, 1966 and MIDC has been designated as the Special Planning Authority for such notified areas.
The Planning and development control of these notified areas are within the jurisdiction of MIDC and
as such approval of Building Plans, issuing of Building Completion Certificate and granting of
occupation letter are looked after by MIDC. The levy of development charges is also within the
preview of MIDC and MIDC has also been empowered to decide the rate of such charges.
In view of the above, you can approach MIDC directly for all such matter like Building Permission,
Building Completion Certificate (B.C.C.), Occupation letter, Drainage Completion Certificate etc.
Q When is the Final Lease Executed?
A The Final Lease for a period of 95 years in respect of the allotted plot is executed after the allottee
has completed all stages mentioned earlier and on production of a copy of B.C.C., receipts regarding
payment of up to date ground rent and no dues certificate from the concerned Executive Engineer,
MIDC.
Please note the following points:

a) The plot holder has to pay ground rent of Rupee one per plot per annum in
advance on or before 1st January of every calendar year.

b) The intending allottee of plot is not allowed to transfer and /or dispose of the
allotted plot without prior written consent from the Corporation.

c) Sub-letting of the factory building constructed on the allotted plot or any par of
the plot is not allowed without prior permission of the corporation in written.
 d) The plot holder is liable to pay all rents, taxes and assessment dues under the
law in force and also to pay service charges for maintenance of roads, drainage,
water supply etc.

e) The plot holder has to comply with the terms and condition of the Agreement to
Lease / Final Lease as the case may be and also the laws, rules and regulations in
force.

Q How to obtain the extension in time limit for completion of the project?
A Document required for extension of time limit (Effective steps taken)
Due to the various reason, if allottee is not in a position to complete the construction work and
obtain BCC or started the production, after expiry of prescribed time limit as follows; By considering
the progress of the work and effective steps taken by the allottee, MIDC may take the decision for
granting further extension on recovery of non refundable additional premium i.e. 5% of the premium
rate prevalent on the date of expiry of time limit.
Group Time
Industrial Area in Group A & B 3 Years
Industrial Area in Group C 4 Years
Industrial Area in Group D & D
5 Years
+
1. NOC & SSI registration issued by the Technical Advisor, MIDC, Mumbai – 4000093 in MMR area. In
other than MMR area SSI Registration from concerned DIC / IEM /LOI from Govt. of India for large
scale units.
2. Consent issued by the Maharashtra Pollution Control Board or copy of acknowledgement of
application submitted for MPCB Consent.
Note: Copy of Plan Approval, Sanction of water connection, whether applied for BCC will be
confirmed by Regional officer / Area Manager or Executive Engineer / Dy. Engineer.
Documents required for grant of extensions of time limit. (Production started)
If allottee after taking over possession of the said plot and on approval of the plan, commence the
construction on plot and completed the same but not obtained the BCC and the production the
extension of the time limit will be granted on submission of following document /s. In such cases,
additional premium is tobe recovered upto the date of commencement of production.

1. Copy of permanent S. S. I. Registration showing the date of commencement of

production (SSI Regn. issued prior to 31-12-1993)

OR
2. A letter from the Financial Institution to whom to Plot has been mortgaged (for
Term Loan) starting that the unit has been gone into production from the particular
date.
OR
3. A Certificate from Department of Industrial Safely and Health (DISH) showing the
date of commencement of production. (for the unit registered with DISH under
Factory Act)
OR
4. Certified copy of Central Excise gate pass if applicable.
OR
5. First three bills of M. S. E. B. in connection with production and certified copy
of Sales Tax Certificate, if applicable and List of machinery installed with purchase
value and date of purchase certified by Chartered Accountant and copies of first
three sale bills & purchase bills. (In case of job work, copies of material received
challans & job work charges bill)
Please note:

i) Extension of time limit for producing the B.C.C. is not automatic. Each case is
decided by the Regional Officer or the Chief Executive Officer, as the case may
be, strictly on merits taking into account all the relevant factors such as the
reasonableness of the request, steps taken for implementation and the
difficulties encountered by the allottee.
 ii) Under no circumstances, the payment of additional premium for extension is
waived.

iii) There is no prescribed format or process fee for applying for extension. The
application on plain paper will be accepted and processed by the concerned
authority.

Q What is Land Allotment and Grievances Committee? How can it help me?
A At the Head Office of MIDC, as well as at all the Regional Offices, Land
Allotment and Grievances Committees have been set up consisting of Senior Officials of MIDC (land,
planning and engineering sections), Directorate of Industries and other promotional agencies like
SICOM, MSFC etc. These committees meet every week on a fixed day. You do not need a prior
appointment to appear before the Committee and you can take up any problem regarding plot
allotment, possession, change of location of the plot, building plan approvals, execution of lease,
consent for mortgage etc. The committee at the Head Office (chaired by our Jt. CEO) meets every
Monday at 3.00 p.m. You may please ascertain from the concerned Regional Office, the fixed day for
the weekly meeting in the Regional Office.

GUIDELINES FOR FILLING IN THE APPLICATION FORM

General
1 Kindly go through the following points before filling in the application form.

a) Please read carefully the contents of the booklet “How to get a Plot in
MIDC industrial area?’’

b) Please ensure that no column from the application form is left blank. If
a particular item is not applicable, please write “ Not Applicable” (N.A)

c) Application form entrepreneurs belonging to the category of scheduled

cast, Vimukt Jati, nomadic Tribes, Defence Personnel, Freedom Fighters and land
affected persons when accompanied by true copies of certificates from concerned
authorities will be given preference. So also woman entrepreneurs. Technocrats &
NRI’s will be given priority in land allotment.

Specific
2 If the application is preferred on behalf of partnership firm , names of all the partners should be
furnished, indicating their shares. Copy of the Partnership Deed should also be enclosed.
If the application is preferred on behalf of an existing Company, Private or Public Limited, a copy of
Memorandum and Articles of Association of the Company, together with certificate of incorporation
and a copy of the Board resolution authoring the application to apply on behalf of the company
should be enclosed.
If the application is being made in the capacity of the promoter of proposed company or proposed
partnership, it may clearly be stated “ Promoter of proposed Private / Public Ltd. Co. and names of
all the promoters be indicated. In case of proposed partnership firm please state “ Promoter of
proposed Partnership Firm ” giving names of all the partners.
If it is Society whether it is registered under the Co-operative Societies Act or Societies Registration
Act, may be stated clearly. Details of the Registration number and date may be given along with
copy of Registration Certificate. If the application is made as promoter of the proposed Co-operative
society, names of the promoters with names of the members of the proposed society may be given.
3 As per Government of India’s definition, Small Scale Industry (SSI) means an industrial unit having
investment in plant & Machinery up to Rs. 100.00 lakhs. All other units having investment more than
above limits fall under Large Scale Industry (LSI category.
4 Please attach a brief profile (Not a project report) indicating the salient features of the project to
help us in assessment of the need based land requirement of your project along with future
expansion plans, if any.
5 Area of plot may be estimated keeping in mind the following factors
a) Land is given by MIDC to accommodate the reasonable requirements of the proposed Industrial
Unit covering a span of 3 phases of (each phase of five proposed Industrial Unit covering a span of 3
phases of (each phase of five period) permissible floor space index (FSI) is one limited to 50 per cent
ground coverage.)
b)
 (i) Plinth area of building with roof may be estimated for each phase.

(ii) Please add equal area to (b)(i) above as land appurtenant tothe proposed
building.

(iii) Please add the land required for open type of activities like electric
substation,effluent treatment plants, open storages of raw material / finished
goods, explosive / hazardous goods storage (if any) and safety area as per relevant
regulations for such storages.

(iv) Please do not include land required for internal circulation / services / greenery
separately since it is normally expected do be covered under (ii)above.

(Please note that the construction of various structures / buildings for the purpose
of condition the industrial activity for which plot is allotted, including the incidental
essential structures within the allotted plot of the effecting operation of the industry
are normally permissible on the allotted plot in MIDC area)

c) 1/10 th area of the total plot can be utilised only for the essential staff housing subject to the
provisions of Development Control Rules.
d)

i) Minimum area of plot should be twice the figure at 5.1

ii) If the figure at 5.2 is greater than 5.1 than please note that the land requirement
has to be inclusive of all the figures from 5.1 to 5.4

iii) In case the requirement of land under 5.3 which is much more than the sum of
5.1 & 5.2 then give explanatory note justifying the land requirement with the type
of activity proposed on the land.

e) Please enclosed a block plan to the scale of 1cm=5 M with legend covering all the above aspects
and indicating area required for each item in sq.mtrs.
6 In case of chemical, metallurgical, metal finishing, milk processing, cement asbestos, petroleum,
fertilizers, textile processing etc. Please enclose detailed product wise description of the process
along with names of different raw materials, quantity of water to be used for the process, quantity of
effluent generated, colour of the effluent constituents of the effluent, solid waste generation, mode
of treatment and disposal etc. product wise.
If you follow the above guidelines meticulously, you should get the “Offer Letter” within 15 days
from the date of receipt of application.