DRAFT ALLOTMENT ORDER A & B DISTRICTS

What the document covers

The Draft Allotment Order A & B Districts is intended for companies, firms and proprietary concerns receiving plots in industrial parks managed by the State Industries Promotion Corporation of Tamilnadu Ltd. Each plot is allotted on a ninety-nine-year lease for the manufacture stated in the completed allotment order.

The final plot extent may change after measurement when possession is handed over. The total amount payable will be adjusted accordingly.

Main deadlines

An allottee must:

• Accept the allotment within 7 days and confirm acceptance of the prevailing allotment orders and circulars published on the corporation's website.
• Pay the full amount specified in the allotment order within 30 days.
• Execute and register the lease deed within 45 days after payment.
• Take possession in its existing condition within 15 days after execution or registration of the lease deed.
• Complete construction and implement the project within 36 months after registration of the lease deed.

Failure to accept or pay on time causes automatic cancellation and forfeiture of the initial deposit. Late execution of the lease deed attracts a penalty of 0.5% of the prevailing plot cost for every 30 days of delay. Failure to implement the project can result in cancellation and resumption of the plot, unless an extension is granted with a penalty under the prevailing policy.

Payments and continuing costs

The allottee may have to pay plot cost, frontage charges, water supply capital cost, caution deposit and advance lease rent. The interest-free caution deposit is refundable if the project is implemented within the required time, subject to the stated exception for qualifying Mega Projects.

The State Industries Promotion Corporation of Tamilnadu Ltd. may also collect proportionate additional development expenses, annual maintenance charges and 50% of project costs under the Participatory Infrastructure Development Programme. The allottee is responsible for applicable taxes, assessments, electricity connections and other support infrastructure costs.

Construction and use restrictions

Buildings must comply with local body requirements, development controls, building regulations, environmental laws and other applicable requirements. The plot must retain an open setback of at least 5 metres on every side. Temporary structures are allowed only during construction or future reconstruction, and katcha or inflammable construction is prohibited.

Wells, bore wells and tube wells require prior permission. The corporation may inspect the plot and use the 5 metre strip for common pipelines, bore wells or facilities without paying compensation or rent.

Changes requiring approval

The allottee must obtain prior approval from the State Industries Promotion Corporation of Tamilnadu Ltd. for changes in constitution or management, and for transfer of leasehold rights in whole or in part. Applicable charges under the prevailing policy must also be paid.