Industrialists demand withdrawal of revised devpt control rules of MIDC
| Date :12-Sep-2019 |
Business Bureau :
Industrialists in the region have demanded withdrawal of revised development control rules of MIDC pertaining to building completion certificate (BCC) which they feel are detrimental to growth of micro small and medium enterprises (MSMEs) Nitin Lonkar, President of Butibori Manufacturers Association (BMA) said that earlier it was required to construct minimum 10 per cent of FSI on plot area for obtaining BCC in MIDC lease hold plots. “This was subsequently in 2012 revised to 20 per cent,” he said. Since June 2019, MIDC has enforced minimum 40 per cent construction (FSI) on plot area upto the plot size of 20,000 square meters that too in two years for A and B category i.e. within 20 km area of corporation limit. Three years for other categories (C,D & D+).
However, for plot sizes above 20,000 square meters, the BCC rules remain the same as earlier, meaning no change in criteria for large industries, he said. This is an attempt to arrest the growth of MSME sector. Just imagine small industrialist who want to start new industry and expand in stages upto 10/12 years. Considering a long- term plan he demands 5,000 square meters of land from MIDC and initially construct 20 per cent of FSI i.e. 1,000 square meters (10,000 square feet).
“Added to this will be cost of machinery which may take only land plus plant and machinery cost to more than Rs 5 crore. In such situation no small industrial units can survive with such an huge investment in the initial stage,” he said. At the same time if one demands 2,500 square meter area, other things remaining same and if he has to expand after 5 to 10 years, he will have no space for expansion, said C G Shegaonkar, President of MIDC Industries Association. “We appeal to State Government to withdraw such rules or extend the BCC period in stages upto 10 years,” he demanded. On the similar lines MIDC has come out with another circular, wherein individual plot holder have already taken BCC as per the then prevailing rules i.e. 10 per cent or 20 per cent of FSI.
“They are now advised to construct minimum 40 per cent of FSI and take revised BCC within two years failing which extra land will be called back. Small scale industries which are already passing through recession will be unable to withstand the circumstances. For their survival, State Government should give minimum 5/7 years for completing 40 per cent of BCC,” he suggested.
Shegaonkar said, the third circular in line is about industries who have managed to get BCC without proper construction and are lying vacant. “Here no one should have objection in enforcing such industries to complete construction and obtain BCC within stipulated period failing which MIDC may call back such plots for reallotment. In nutshell, we request MIDC to reconsider and withdraw such detrimental circulars looking at the worsening conditions of MSME sector,” he demanded. At the same time, he suggested State Government to frame a quick and sustainable exit policy for MSME so that the closed and sick units which are in large numbers particularly in Hingna MIDC may change the hands and revival of such industries is possible, he noted.