Draft Allotment Order for C Districts

What the document governs

The Draft Allotment Order for C Districts from the State Industries Promotion Corporation of Tamilnadu Ltd. is a template for leasing industrial plots for ninety-nine years to establish a specified manufacturing unit. The final plot extent and amount payable may change based on measurements taken when the site is handed over.

Who it affects

The Draft Allotment Order for C Districts affects companies, firms and proprietary concerns receiving plots in State Industries Promotion Corporation of Tamilnadu Ltd. industrial parks in C Districts. An allottee must also obtain prior approval for a change in its constitution or management and pay applicable charges under the prevailing policy.

Payments and continuing costs

The allotment calculation may include:

• Plot cost after the stated land cost incentive and Government subsidy adjustments.
• Frontage charges, where applicable.
• Fifty per cent of capital cost for the allocated water supply, where applicable.
• An interest-free caution deposit equal to five per cent of the stated plot cost total.
• Rs.100 as advance annual lease rent, calculated at Re.1 per year for 98 years and Rs.2 for the ninety-ninth year.

The allottee must also pay water charges, applicable taxes and assessments, electricity connection expenses, apportioned development costs, maintenance charges and eligible infrastructure programme contributions. Overdue maintenance charges attract interest at 12 per cent per year or another rate prescribed from time to time.

Deadlines and cancellation risks

The Draft Allotment Order for C Districts requires the allottee to:

• Accept within seven days and confirm acceptance of relevant office orders and circulars published on the website.
• Pay the full amount payable within thirty days.
• Execute and register the lease deed within forty-five days after payment.
• Take possession in its existing condition within fifteen days after lease registration.
• Complete construction and implement the project within thirty-six months after lease registration.

Late lease execution attracts a penalty of 0.5 per cent of the prevailing plot cost for every thirty days. Failure at specified stages can cause automatic cancellation, forfeiture of the initial deposit or resumption of the plot.

Site use and construction

The allottee must follow local building requirements, development controls, environmental laws and other applicable rules. A five metre open setback is required on every side. Temporary or semi-permanent structures are allowed only during construction or later reconstruction, and katcha or inflammable construction is prohibited.

Wells and bore wells require prior permission. State Industries Promotion Corporation of Tamilnadu Ltd. may inspect the plot and use the open strip for common pipelines, bore wells and facilities without compensation or rent.