O.O.No.30/2024, Office Order on Transfer of SIPCOT Leasehold Rights

What the office order governs

Office Order Number 30 of 2024, dated 20 December 2024, was issued by the State Industrial Promotion Corporation of Tamil Nadu Limited. It applies when an allotted plot in a SIPCOT Industrial Park undergoes a change in management or a transfer of leasehold rights.

The changes affect the transferor, the transferee or new management, and units whose projects must be implemented after a Modified Lease Deed is executed and registered.

Payment and lease deed deadlines

The State Industrial Promotion Corporation of Tamil Nadu Limited has approved the following conditions:

• The Differential Land Cost and Processing Fee must be paid within 30 days from the date on which the change in management or transfer of leasehold rights is approved.
• The payment may be made by the transferor or transferee.
• Any applicable interest becomes payable if payment is delayed.
• The transferee must execute and register the Modified Lease Deed within 45 days from the date of payment of the Differential Land Cost and Processing Fee, together with any applicable interest for delayed payment.
• The Managing Director may grant an additional 45 days for execution and registration of the Modified Lease Deed, based on the merits of the case and without penalty.
• Any further extension must follow the delegation of powers given in Office Order Number 21 of 2022, dated 8 July 2022.

Project implementation period

The implementation period is calculated from the execution or registration of the Modified Lease Deed.

A 12 month period applies to:

• Units that have not commenced commercial production.
• Units functioning for more than five years from commencement of commercial production.
• Units functioning for less than five years from commencement of commercial production.
• Stock exchange listed public limited companies that have commenced commercial production.

A 24 month period applies to:

• Revival of sick units under schemes approved by Banks, FI, BIFR, NCLT or other legal forums.
• Asset sales by an Official Liquidator, Court or NCLT.
• Asset sales by Banks, FI, listed NBFC or ARC, whether or not an NOC was issued for mortgaging the leasehold rights.
• Joint venture companies of TIDCO, ELCOT, TIDEL, SIPCOT or other government agencies where the relevant government agency board has approved the shareholding change.