Official guidance, Tamil Nadu land law
SIPCOT Industrial Park / Complex / Growth Centre, Annual Maintenance Charges, Method of Fixation
The State Industries Promotion Corporation of Tamil Nadu Limited, a Government of Tamil Nadu undertaking, issued Reference No. F/MC/2021 dated 10 February 2021 to allottees in its industrial parks, complexes and growth centres. The communication explains how annual maintenance charges are calculated, apportioned and collected, including the interest applicable when payment is late.
Purpose and scope
The State Industries Promotion Corporation of Tamil Nadu Limited issued Reference No. F/MC/2021 dated 10 February 2021 concerning annual maintenance charges payable by plot allottees in its industrial parks, complexes and growth centres. The charges arise under the terms of the allotment order and lease deed and cover common amenities and facilities.
How the annual charge is fixed
Reference No. F/MC/2021 explains that the charge for each year is based on actual maintenance expenditure incurred in the previous year, using audited accounts. The amount is apportioned over the area allotted.
The calculation includes:
- Expenditure on maintaining infrastructure facilities.
- Special repairs to roads, drainage, street lights, avenue plants and amenity buildings.
- Fifty per cent of Project Office administrative expenses.
- Work bill payments to contractors for maintenance work.
- Payments for labour engaged under annual maintenance contracts.
- Electricity charges.
- Security charges for complex assets.
- Lump sum payments for upkeep and maintenance, including materials.
Facilities covered
Reference No. F/MC/2021 identifies common amenities and facilities such as roads, street lighting, sanitation, drainage, common buildings, avenue plants and parks. The charges may be apportioned among allottees according to the prevailing policy.
Payment and late payment
The State Industries Promotion Corporation of Tamil Nadu Limited states that annual maintenance charges are collected from allottees in two instalments. Allottees must pay within the prescribed period.
Key payment provisions are:
- The communication does not specify the instalment dates or a fixed charge per unit of land.
- The annual amount can change because it is based on the previous year's audited expenditure.
- Non-payment by the due date automatically attracts interest at twelve per cent per annum, or another rate prescribed from time to time.
Who is affected
Reference No. F/MC/2021 is addressed to all allottees in State Industries Promotion Corporation of Tamil Nadu Limited industrial parks, complexes and growth centres. Its calculation and payment terms are therefore relevant to businesses and other parties holding allotted plots in those locations.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
How does SIPCOT calculate my annual maintenance charge?
The State Industries Promotion Corporation of Tamil Nadu Limited uses the previous year's actual maintenance expenditure from audited accounts, includes fifty per cent of Project Office administrative expenses, and apportions the amount over the area allotted.
What expenses can be included in the maintenance charge?
The charge can include infrastructure maintenance, special repairs, contractor and maintenance labour payments, electricity, security, materials and upkeep of facilities such as roads, drainage, street lights, buildings, plants and parks.
How often must the annual maintenance charge be paid?
Reference No. F/MC/2021 states that the annual maintenance charge is collected in two instalments. It does not provide the instalment dates.
What happens if a SIPCOT allottee pays late?
Non-payment by the due date automatically attracts interest at twelve per cent per annum, or another rate that may be prescribed from time to time.
