O.O. No. 29/2020, Frontage Charges Policy
The State Industries Promotion Corporation of Tamil Nadu Limited issued Office Order O.O. No. 29/2020 on 31 July 2020, setting frontage charges for new plot allotments in its industrial complexes, parks and growth centres. Effective from 21 July 2020, the policy charges between 5% and 15% of plot cost based on the adjoining road, including for commercial plots.
What the policy governs
Office Order O.O. No. 29/2020, issued by the State Industries Promotion Corporation of Tamil Nadu Limited on 31 July 2020, establishes frontage charges for new allotments in its industrial complexes, parks and growth centres. The Board of the State Industries Promotion Corporation of Tamil Nadu Limited approved the charges at its meeting on 21 July 2020, and the policy took effect from that date.
The frontage charge is an additional amount calculated as a percentage of the plot cost. The applicable percentage depends on the road faced by the plot.
Frontage charge rates
Office Order O.O. No. 29/2020 specifies the following charges:
- Plots facing a National Highway, or a service road formed by the Corporation parallel to a National Highway, are charged 15% of the plot cost.
- Plots facing a State Highway, or a service road formed by the Corporation parallel to a State Highway, are charged 10% of the plot cost.
- Plots facing a Major District Road, or a service road formed by the Corporation parallel to a Major District Road, are charged 5% of the plot cost.
- Plots facing a main road formed by the Corporation that connects to a National Highway or State Highway are charged 5% of the plot cost. This applies up to 500 metres from the National Highway or State Highway.
Payment and area limit
Office Order O.O. No. 29/2020 limits the area on which frontage charges may be levied to a maximum of 50,000 square metres of the plot facing the listed roads.
The frontage charge forms part of the upfront payment that the allottee must make. It is therefore payable at the initial payment stage rather than being treated separately from the allotment payment.
Who may be affected
Office Order O.O. No. 29/2020 affects parties receiving new plot allotments from the State Industries Promotion Corporation of Tamil Nadu Limited where the plot faces one of the listed highways, district roads, service roads or connecting main roads. The policy also expressly applies to commercial plots.
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Common questions
Does the frontage charge apply to an existing allotment?
Office Order O.O. No. 29/2020 states that the approved frontage charges are to be collected for new allotments. It does not state that they apply to existing allotments.
How much is charged for a plot facing a National Highway?
The frontage charge is 15% of the plot cost for a plot facing a National Highway or a Corporation service road running parallel to it.
Is the frontage charge payable separately from the upfront payment?
No. The frontage charge forms part of the upfront payment to be made by the allottee.
Are commercial plots covered by the frontage charge policy?
Yes. Office Order O.O. No. 29/2020 expressly states that frontage charges apply to commercial plots.
