Gujarat Industrial Development Corporation (GIDC) on Wednesday imposed a 15 per cent increase on the allotment price of plots at industrial estates with effect from April 1, 2021.
The price of a plot at Sanand Industrial Estate II, which was Rs 3,780 per square metre earlier, has been raised Rs 4,160. Similarly, the new price at Gandhinagar is Rs 7,020, at Dahej Rs 2,240, at Halol Rs 2,110 and at Saykha Rs 2,420.
The decision to increase the allotment prices was taken at the 511th board meeting of GIDC on March 30. The revised rates will now apply in all cases of new allotments, transfers, non-utilization penalties and similar charges.
The move surprised industry associations and was widely criticised. According to sources, various representations have been made to review the decision due to the grim economic situation. Requests have been made to defer the move by at least one year as this will hamper growth and delay investment decisions.
“We have made several representations to GIDC to not increase allotment rates. After the pandemic, industry is barely surviving. The state government has not increased jantri rates so why does GIDC need to increase rates. At least 20 industry associations have made representations about this,” said Ajit Shah, president, Sanand Industries’ Association (SIA).
Shah also said that in Sanand, 75% of the land has been allotted of which only 30% has been utilized, where units are operational or construction work is under way. “If the land is not being utilized, what is the point of increasing rates. How will it attract fresh investment?” he said.