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Q.1 What is the Industrial Infrastructure Development Policy?

Haryana, since its inception in November 1966, has taken a big leap in social an d economic advancement. The State stands out for its progressive policies which have led to improvement in the quality of life for its residents through focusse d development of agriculture, industries, commerce & trade, and creation of exce llent social infrastructure. It is recognised as a State trying to orchestrate i mprovement in every parameter involved in guiding investment decisions. The Govt. of Haryana recognises the need for rapid industrial growth on a sustai nable basis to achieve the twin objectives of economic development and generatio n of adequate employment. The Govt. of India is actively promoting economic libe ralisation and reforms to make the country's industry internationally competitiv e and to encourage foreign investment and technology for modernisation of the In dian economy. The Govt. of Haryana is committed to supplement the national effor t through its own policies which facilitate the process of industrial growth. Haryana's two strongest points --- physical infrastructure and govt. support - a re the top determinants of investment decision. Further strengthening the infras tructure in order to support the growth process has been accepted by the State a s the mainstay of its policy initiatives. A number of projects for development o f industrial infrastructure are being implemented. The growth centres at Bawal ( phase II) and Saha are under implementation. An Industrial Model Township at Man esar in Gurgaon and growth centre at Bawal (Ph.1) has been developed. Several ot her innovative projects such as an Indo-German Industrial Park at Faridabad, Sof tware Technology Park at Gurgaon, and an Export Promotion Industrial Park at Kun dli have also been formulated in the State. The new Estate Management Procedure (EMP) is specifically oriented to develop an d upgrade the basic industrial infrastructure with focused effort to provide Sta te's support in helping the domestic industry compete internationally. The polic y aims at balanced regional development compatible with environmental concerns o f the society recognising at the same time pivotal role of the process of compet itive industrial growth in economic development of the State.

Q.2 What is the Rationale for setting up of Industrial Estates in Haryana? Industrial Estates are an important tool for expanding, strengthening and locati ng industries as a part of broad programme of industrialisation.

Q.3 What are the main objectives of developing Industrial Estates? The main objectives of developing industrial estates are: To provide well-planned and developed sites for industries along with basic infr astructure facilities viz. roads, water, sewerage, electricity, etc. To bring a number of industrial units together so as to generate synergy among i ndividual units through a process of common services that reinforce growth by es tablishing linkages between supportive industry. To provide the entrepreneurs access to goods and services taking advantage of ec onomies of scale.

Q.4 What are the guidelines for promotion of Industrial Estates?

The developing agency may facilitate/participate in setting up of captive power generation station with suitable distribution net-work within Industrial Estate in association with public/private sector where ever such projects are feasible. Q. However. STP/CETP operation and maintenance. (ii) Category `B'. street lighti ng.6 What areas constitute the category `A'. `B' & `C'. Maintenance of Industrial Estates will occupy a high priority with the developin g agencies. keeping in view the objectives of the State Govt. Such areas will be identified by the Industries Department and the HSIIDC. Plots will be offered for allotment within a period of one year from the date of the acquisition of land. In order to promote dispersal of industry for balanced regional development. A clause would be inser ted in the agreement to be executed with the allottees regarding payment of main tenance and service charges to HSIIDC and/ or such body/association. service charges suc h as water & sewerage charges. For balanced development of indust ries throughout the State. The anticipated expenditure for capital maintenance would be capitalised for 10 years while arriving at the rate of developed land. The Category `A' h . While planning development of industrial infrastructure. industrial estates will be developed in the high pote ntial zone. HSIIDC will set up Industrial Estates on its own or jointly with private promote rs or others in potential areas. Do you want to know about the location of Industrial Estates in Haryana? List of locations of Industrial Estates in Haryana Q. In order to avoid duplication of efforts of these agenc ies. apart from licen se-fee payable to the Government. The State can be divided into (i) Category `A'. due regard will be give n to the concept of balanced regional development. a minimum return on its investment will be ens ured to the developing agency. The developing agency will carry out the develop ment works either from its own resources or by arranging funds from Government/F inancial Institutions or in participation with the private sector. would be charged from the beginn ing. The HSIIDC may continue to maintain and provide municipal services within t he estate thereafter against realisation of full capital maintenance and service charges or may hand over the same to the local body/ Association of the allotte es on completion of this period for further maintenance.Promotion of industrial estates occupies high priority with the State Government and it has been decided to give stimulus to this activity for rapid industriali sation in the State.5. it has been decided that in future industrial estates will be set up exclus ively by Haryana State Industrial & Infrastructure Development Corporation Ltd. the Industrial Estates developed by different agencies so far will cont inue to be maintained by the concerned developing agency. solid waste management and cleanliness etc. However. a suitable attractive package of incentives will be offered as may be decided by the Government from time to tim e. Guidelines for Promotion & Development of Industrial Estate s A number of State level agencies have been engaged in the development of industr ial estates in the past. The industrial plots/sheds will be allotted keeping in view the development sche dule of the Industrial Estates. medium potential as well as low potential zones. Wherever the developing agency is a minor share-holder in the joint venture. to ensure planned and speedy industrialisation of the State and dispersal of indus try in the backward areas. (iii) Categor y `C' taking into account the growth pattern.

Bawal and Panchkula would constitute the C ategory `B'. where Industrial Estates of Bahadurgarh. For other categories. allotments will be m ade by the following committee:(a) MD. Besides the above. HFC Member (d) Director of Industries Member For other projects including those under been identified comprising of Industrial estates of Gurgaon. guidence and hand holding services for venture location by prospective entrepreneures particularly with regard to various sanctions/ approvals needed f or implementation of the projects. will also be on on-going basis. Rai and Panchkula Technology Park. NRI. the allotment of plots/sheds in Industrial Estates falling in category C. EPIP Kundli. Allotment of land for IT Industry (Manufacturing and Software Development) The applications in respect of all these shell be made to and processed by HSII DC. the rest of the state shall constitute Category `C'. IT industry ( manufacturing & software development) and general category.8 Do you want to know the mode of allotment of industrial plots/sheds in the Industrial Estates? The allotment of plots/sheds will be on an ongoing basis in the following cases as provided in the Industrial Policy 2005: Projects having investment of Rs.30 crore and above will b e made by the following committee:(a) Principal Secretary Industries Chairman (b) MD. HFC Member (c) Director of Industries Member Senior-most member will act as Chairman of the Committee. availability of land and present level of inf rastructure in the State and to assist entrepreneurs in submission of applicatio ns for approvals/registration to different organisations. allotments will be made after inviting applications throug h advertisements in leading newspapers. HSIIDC Member (b) MD. 7 What is Investment Promotion Centre ? Investment Promotion Centre act as a Single Point Contact Agency to provide info rmation. Q. Q. The applicant shall be required to deposit processing fee (non-refundable) along . 30 crore & above. Manesar and Far idabad Industrial estate. Allotment of plots to projects having investment of Rs. HSIIDC Member (c) MD. PIO s categories. Projects being set up by NRIs / PIOs Units with 33% or more FDI in total investment.

implementation schedule etc.5000/Rs.with application form as hereunder Size of Plot (sq. if applicabl 10% price of the plot alongwith processingapplication fee in the form of bank dr aft drawn in favour of HSIIDC payable at Panchkula as earnest money. Q.17000 The fee levied by the Corporation will be inclusive of service tax.9 In what cases the application for allotments will not be invited through pre ss advertisement? The allotment of plots in category C will be ongoing basis and for other categor ies A & B allotment will be made after inviting applications through advertisem ent in leading papers.5500/1051-4050 Rs. Copy of the project report with details of plant & machinery.10 What document should accompany application form for the allotment of plot? The application form duly filled-in will be received by HSIIDC alongwith the fol lowing documents: An undertaking to the effect that the applicant shall as far as possible employ 75% of unskilled work force and give preference for other categories to candidat es from among the Haryana Domiciles in the proposed unit. Protection of Right and Full Participation) Act. Copy of the partnership deed in case of partnership firm or Memorandum & Article s of Association in case of Pvt.10000 Rs. Q. Q. Photograph of the applicant.25000 Rs.3500/501-1050 Rs. There will b e upto 2% reservation of plots/sheds in each estate for allotment to persons wit h disabilities as defined in the persons with disabilities (Equal opportunities. . profitability projections. Q. / Public limited company alongwith a copy of ce rtificate of incorporation of the company and details of the promoters and their holding in the company Land utilisation plan to justify the requirement of land.15000 Rs.11 Do you want to know about the reservation policy in respect of plots/sheds in the Industrial Estates? There will be 10% reservation of plots/sheds in each each Estate for allotment o f NRIs/PIOs and for units with 33% or more FDI in total investment. managing partner in case of a partnership firm and authorized director in case of a company.7500 4051-8100 Rs.) Category .12 Who will make the allotment in respect of reserved categories? Allotment in respect of all the categories including reserved categories. Any other information to be specified by the developing agency.A Category B & C Upto 500 Rs. shell be made by HSIIDC. means of financing . 1995.10000 above 8100 Rs.7500/Rs.

Remaining 75% in five equal half-yearly installments. the RLA shall automatically lapse and the amount deposit ed by the allottee towards cost of the plot shall be refunded without any deduct ion.14 What would be the term of payment? 10% along with application (earnest money) 15% within a period of 30 days. Q.13 Are there any preferential categories in respect of these plots/sheds? In the general allotment. Unemployed engineering graduates/ Polytechnic/ITI traine d candidates. th e size. other things being equal. plot number. In the event of the allottee failing to make the payment of 15% price of the plo t within 60 days period.Q. preference will be given to the following categories: Ex-servicemen. In the RLA.15 What is the rate of interest on balance amount in case of delay payment? The allottee is required to pay penal interest @ 3% per annum over & above 11% p . further extendable for 30 days with interest @ 1 4% for the extended period. In cases where the allottees approach HSIIDC for taking over possession of the p lot in an area where possession has not been offered. Q. In such cases interest shall be charged on the outstanding amount from the date of handing over the physical possession of plot. Q.17 What will follow in case the allottee fails to adhere to the schedule/ prog ress? . Default in payment of instalments shall entail interest @ 14% for the defaulted period on the defaulted amount. Interest @ 11% shall be charged on the balance outstanding after offer of posses sion of plot/shed. In the event of any encumberance(s) arising out of any other issue not finding m ention in EMP-2005. dimensions. Women . the funds towards the price of the plot should come f rom his / her NRI account. The applicants will be required to deposit 15% price o f plot within 30 days from the date of issue of RLA.a. In case of total balance payment in lumpsum a period of 60 days from the issue o f RLA will be allowed without interest. Expansion/shifting of existing units Oustees on account of acquisition of land for that particular Estate within the terms and conditions of EMP Q. Note: In case of NRIs/PIO s. for delay in payment on defaulted amount towards instalments.16 When will the Regular Letter of Allotment be issued? The applicants recommended by the Allotment Committee will be issued a regular l etter of allotment (RLA). the same can be allowed su bject to the allottee giving a suitable undertaking for not claiming any relaxat ion in the period of implementation. zoning and the rate will be indicated. the matter will be referred to Board of HSIIDC for taking a decision.

Financial tie-ups. Q. Covered area) Plots Ist year 2nd year 1 Category A 75 150 30 2 Category B' 40 80 15 3 Category C 15 30 6 The procedure to grant extension in implementation of projects for industrial pl ots allotted under the previous policies shall be governed as per their respecti ve agreements / RLAs subject to payment of extension fee as mentioned above in c ase there is no deviation. However. Further. Submission of building plans.e. In case of sheds. ft. The allottee shall be required to pay extension fee prescribed for that area and the payment shall be made w. In cas e of surrender. after four years fro m the offer of possession will be granted only in exceptional circumstances with the approval of Board of Directors of HSIIDC. Technical and marketing tie-up. per sq.e. the date the extension is applicable and for a ny delayed payment interest @ 11% shall be charged. Implementation o f the project would mean commencement of commercial production.No. refund will be made after deducting 10% price of the plot. Refund will be given of the amount dep osited without any interest after deducting 10% of the price of the plot. The period for implementation of the project can be extended by HSIIDC for a per iod of one year subject to the allottee having completed construction equivalent to 20% of Permissible Covered Area (PCA) in case of plot size is upto one acre and 10% of PCA in case plot size is more than one acre. a show ca use notice for resumption of the plot will be given by the concerned agency. No extension fee shall be charged upto three years fr . the allottee wi ll satisfy the Corporation that he could not go into production within three yea rs from the date of offer of possession for reasons beyond his control and he to ok effective steps for implementation of the project.Where the allottee(s) fails to adhere to the above schedule/ progress. mtr. In case of non-compliance of the above conditions and unsatisfactory reply to the s how cause notice.18 What is the time required for going into production? The allottee shall be required to implement the project on the industrial plot w ithin a period of 3 years from the date of offer of possession. the allottee shall be required to implement the project within two years from the date of offer of possession. Second extension of one year for completion of project i. the all ottee should. orders for cancellation of allotment and resumption of the plo t will be issued by the concerned agency. as far as possible. Category (Rs. take following steps within a period of two ye ars:Taking over possession of the plot. Extension fee at following rates shall be charged:Sr. Placement of orders of machinery and other capital goods.f.) Sheds (Rs. Per sq. The period for starting product ion shall be extended by one year in those cases where the allottee has installe d / placed orders for substantial part of plant and machinery and depending on m erit of each case.

in case of any change of project. the request for transfer of plot / shed not falling under the provisions of the EMP shall be placed before the BoD for a de . Category A 300 60 2. failing which penalty equivalent to t he transfer fee will be imposed by the Corporation. prior permission is mandatory . However. family transfer or take over by a financial institution. mtr. In case of any deviations from the laid down guidelines / norms with respect to delay in start of construction / implementation of the project / start of produc tion upto six months. Similarly. 5000/. which have been in commercial production for more than five years. quantum of plant & machinery ordere d.will be charged in all such cases. The transferee s hall not be allowed to further transfer the plot for at least one year from the date of transfer of the plot in his name. In case violations are noticed later on. No. level of construction. All transfers covered under the above provision shall entail payment of transfer fee prescribed as under: Sr.19 Is the transfer of plots/sheds possible? Transfer of plots/sheds shall be allowed only if the project has been completed and construction of building is as per the laid down norms and after expiry of o ne year from the date of commencement of commercial production. Category Plots (Rs. per sq. However. The change of management b y transfer of majority shareholding shall also be treated as transfer under the policy. Statement of means of financing of the transferee. the transfer of plot/shed will be allowed without the above conditions in case of inheritance. Only a processing fee of Rs. The allottee is required to submit his request for transfer within a period of 3 0 days from the date of agreement to sell. no transfer fee will be leviable in cases of transfers necessitated on account of inheritance. succession due to the death of the owner/majority shareh olders or take over by public financial institutions.) Sheds (Rs. the Managing Director shall be competent to take a decision in such cases on merits by charging appropriate fee on case to case basis. For transfer of plots/sheds. the transferor will apply to HSIIDC concerned with the following documents: Original letter of allotment Agreement to sell Project report of the transferee. HSIIDC will also not insist on submission of occupation certificate in cases of transfer and submission of a certificate for non-violation by the allottee shall suffice in terms of the provisions in the Industrial Policy-2005 announced by t he State Government recently. the trans feree shall be responsible for rectifications. per the date of offer of possession. Such allottee shall be governed by EMP 2005 for any further extension in future and he shall give an u ndertaking to this effect. on plot / shed on account of forc e majeure/exceptional circumstances. ft. Category B 100 40 3. In the event of non-implementation of project. Category C 30 15 No transfer fee will be levied in cases of industrial units. of covered area) 1. Q.

all other requests received by the Corporation before implementation of EMP-2005 .2005 shall be appli cable. Category C 30 15 No transfer fee will be levied in cases of industrial units. which have been in commercial production for more than five years. Category B 150 40 3. of covered area) 1. However.will be charged in all such cases. Other provisions of transfer as mentioned in EMP-2005/ amendment thereof shall r emain unchanged. however. the f ee charged will be 25% of the difference of the current allotment price and orig inal allotment price of the plot/shed or the fee as mentioned in EMP-2005. . which ever is higher. In case transfer is made after one year from the date of implementation of the u nit.cision.20 Do you want to know about the transfer fee in respect of transfer of plot/s heds? All transfers covered under the above provision shall entail payment of transfer fee prescribed as under: Sr. per sq. the requests for tran sfer of plots/ sheds received before implementation of EMP-2005 shall be dealt w ith in the following manner:in case the request has already been considered by the Corporation and provision al transfer letter (PTL) has been issued to the party.) Sheds (Rs. the transferee will be required to implement its own project before further transfer of the industrial plots/sh eds is effected in favour of another person by him. he will be eligible to transfer the plot in favour of 3rd party with prior written permission of the Co rporation. where the Corporation has already allowed leasing permission to the al lottee even without implementation of the project under the provisions of the po licy in force from time to time and the lessee having already implemented the pr oject on the premises and the allottee is not in a position to implement its own project. prior permission is mandatory . ft. 5000/. No. In case the transfer is made after running the unit for five years. per sq. The allottee shall have to complete the project within the period prescribed und er EMP-2005. Q. Category Plots (Rs. no transfer fee will be leviable in cases of transfers necessitated on account of inheritance. transfer of the industrial plots/sheds will be permissible by charging applicable transfer fee as per EMP-2005 subject to the condition that the allot tee has achieved building construction coverage norms as per EMP-2005 and there are no zoning violations. mtr. However. family transfer or take over by a financial institution. no transfer fee will be charged. In case after implementation of project. transfer fee will be as mentioned in EMP-2005. Category A 300 60 2. shall be considered under the new guidelines. the terms of transfer. However in such cases. as mentioned in the PTL shall be applicable. Similarly. The following fee structure shall be applicable: In case the transfer is made within one year of implementation of project. Only a processing fee of Rs. All transfer requests received by the Corporation after coming into force EMP-20 05. the allottee is not able t o continue to run the project for any reason whatsoever. revised fee as mentioned in the EMP. shall be considered by the Corporation as per previous Estate Management Proce dures/ policy. In cases.

22 Is the Change in Constitution Permissible? Change in share holding will be allowed only if the original allottee or his fam ily members (spouse.21 What documents should accompany the application for transfer of plot/shed? For transfer of plots. Processin g fee of Rs. where the allottee has implemented its own approved unit on the said p lot but could not continue the same due to any reasons. Q. what so ever. by HSII DC without prejudice to the size of the plot and the prescribed schedule of impl ementation of the project. high water consumption/effluent shall be considered. Project Report of the transferee. daughter. parents. In case of transfer of the industrial plot/shed. retain the largest share ho lding and having management control. otherwise it will be treated as a case of t ransfer. In case the original allottee a nd his family fail to retain the prescribed share holding of 51%. the transferee shall be eligibl e to further lease out the premises provided the unit on the aforesaid plot had been implemented by the allottee/ transferee/lessee and one year has elapsed aft er implementation of project. Processing fee of Rs. brothers. sisters) retain a m inimum of 51% share in the project/company/firm.24 What is the policy regarding leasing/renting of industrial plots? In order to ensure optimum utilisation of the industrial areas/industrial estate s. Q. Q. the change in constitution may be allowed subject to the condition t hat the allottee or his associates (family members). other things being equal. However. in case of any change of project. it would amoun t to transfer and dealt with under the relevant provisions. leasing/renting of the premises of the building will be allowed if the allott ee has made construction as per the standard norms and subject to compliance of the following norms : In cases. while permitting change of project factors s uch as pollution. . the transferor will apply to HSIIDC with the following do cuments:Original letter of allotment Agreement to sell Statement of means of financing of the transferee. wife.Q.5000/.shall be charged in all such cases.shall be charged. 23 Is the change of project permissible? The allottee may be allowed change of project. leasing wi ll be permissible by charging applicable normal fee as per EMP-2005 subject to t he condition that allottee has achieved building construction coverage norms as per EMP-2005 and there is no zoning violation. In case where a priv ate limited company becomes a public limited company listed with recognized stoc k exchange.5000/. son.

In cases where the allottee has earlier leased out the plot/shed by taking permi ssion from the Corporation under previous policy and lessee has implemented the project. Q. sh all be considered under the new guidelines. the allottee retains 25% of the permises for his own manufacturing acti vities. subject to payment of the processing fee as prescribed hereunder: Leasing period upto 5 years 50% of the transfer fee Leasing period more than 5 years 100% transfer fee The fee shall be calculated on the basis of the built up area / plot area. In what circumstances can the plot be resumed? The developing agencies will be competent to resume plots in their respective In dustrial Estates in case an allottee defaults in complying with the terms & cond itions of allotment/ transfer/ leasing etc. In case of unauthorized leasing a penalty equal to the prescribed leasing fee shall be imposed. . 5000/.will be charged. processing fee of Rs." All requests received by the corporation after coming into force of EMP-2005. subsidiary company or holding company of the allottee company/firm owned by original promoters of the allottee company and no lease rental is being charged by the allottee. Interest on the amount of leasing fee shall be charged from the date of lease an d on the penalty amount. if applicable. The allottee shall be at liberty to change in tenants within the period specified in the permission letter subject to the allottee kee ping HSIIDC informed about any change made in the tenants and getting the projec t of the lessee / tenant approved. the allottee shall be eligible to further lease out the plot. In case. The allottee is required to obtain prior appr oval of the corporation. the same shall be permitted. Multiple leasing shall be permitted as under: Plot size (square meters) Maximum number of leases Upto 500 1 More than 500 and upto 1500 2 Above 1500 3 The permission for leasing once granted shall be valid for the period specified in the permission letter. which ever is higher and shall be payable from the date of lease @ prescribed at that time with interest. in that case. The resumption of plot would be appr oved by competent authority of the allotting agency after giving proper show cau se notice. Man aging Director is authorized to waive of the leasing fee considering merits of e ach case.25. it shall be payable after expiry of 30 days from the da te of demand by the Corporation. leasing/renting of the balance 75% of the permises of the building will be allowed on payment of processing fee as prescribed hereunder : Leasing period upto 5 years 10% of the transfer fee Leasing period more than 5 years 25% transfer fee In case the allottee. In case the premises is leased out to a concern/firm (owned by the original allo ttee/his family members with minimum 51% shares). plans to lease out the entire plot / constructed area. In case of change of lease within the prescri bed period.

The rates of the plots will be revised w. Q.28 Do you want to know about bifurcation/fragmentation of plots? Bifurcation of industrial plots of only five acres size and above will be permit ted. It may be clarified that the allottee shall not be entitled to any payment/compensation for building constructed by him on the resu med plot. appeal shall lie to a committee of Directors of HSIIDC headed by Principal Secretary Industries. .e. however.f. electricity duty exempt ion etc. Q. Q. 1st April of the year and shall be valid for one year. if any. in case the all ottee transfers the bifurcated plot to some other person. MD/HSIIDC and MD/HFC and approved by the State Government. Such plots can be bifurcated in not more than two plots subject to the cond ition that the sub-divided plots shall not be less than one acre.30 What are special package of incentive for projects more than 30 crores? Special package of incentive like stamp duty concession. The allottee will be free to remove the structure/debris.29 Can the rates of plots change in future? The rates of plots and revision thereof will be finalized by a committee headed by Principal Secretary Industries and consisting of Director Industry. and the same wi ll be chargeable on the bifurcated portion of the plot. Further. are considered by the high powered committee for setting up the project s in Haryana with investment of more than 30 crores.26 Upon resumption of plot what amount will be refunded to the allottee? Upon resumption/surrender.27 What is the policy regarding restoration of resumed plots? No restoration of resumed plots shall be allowed. failing which it shall be r emoved at the allottee s cost. within a perio d of two months of resumption order at his own cost. Q.Q. The interest pai d by the allottee shall also be forfeited. keeping in vie w the zoning regulations & fire safety. The bifurcation will be permitted only f or industrial purpose and there will not be more than two tenants on the origina l plot. then separate transfer fee will also be leviable on the same. Haryana as the other members against the order of competent authority ordering resumption. MD/H FC and Director of Industries. the amount deposited by the allottee will be refunded after deducting 10% of the price of plot without any interest. The said bifurcation will be subject to payment of bifurcation fee equivalent to transfer fee applicable in the concerned area. meaning thereby that only one tenancy each will be permissible on the su b divided plots.