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Madhya Pradesh Allotment of

Industrial Land & Building to MSMEs
and Management Rules 2021
(As amended upto October, 2022)

Government of Madhya Pradesh

Department of Micro, Small and Medium Enterprises

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 Madhya Pradesh Allotment of Industrial Land and Building to MSMEs and
Management Rules, 2021
(As amended upto October 2022)

Government of Madhya Pradesh, Micro, Small and Medium Enterprises

Department, hereby, issues “Madhya Pradesh Allotment of Industrial Land and
Building to MSMEs and Management Rules, 2021” for the management of
industrial land, developed land for industrial area and industrial buildings in

the state of Madhya Pradesh:-

1. Short title, commencement and effect -

(i) These rules shall be called the मध्‍यप्रदे श‍एमएसएमई‍को‍औद्योगिक‍भूगम‍तथा‍भवन‍

आवंटन‍एवं‍प्रबंधन‍गनयम‍2021‍(Madhya Pradesh Allotment of Industrial Land

and Building to MSMEs and Management Rules, 2021).

(ii) These rules shall apply to the land, industrial areas and buildings
owned by the Micro, Small and Medium Enterprises Department,
located in the Madhya Pradesh:

Provided that in case of conflict between provisions of the Act and

Rules issued by the Government of India or the State Government for
the regulation of Special Economic Zones and the provisions of these
Land Management Rules, the provisions of the Act and Rules issued
by the Government of India or the State Government shall be
applicable.

(iii) Under these rules, process and documents concerning to allotment of

land and building construction and management in industrial areas
for industrial purpose, residential purpose, commercial purpose,

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 warehousing purpose and ancillary purpose of industry have been
determined.

(iv) The process of allotment of industrial areas/industrial buildings to be

developed under Public Private Partnership (PPP), buildings to be
constructed for plug and play and commercial buildings shall not be
carried out under these rules. Management of such projects shall be
as per the tender issued for the project.
(v) These rules shall come into force from the date of issue.
(2) Definitions- Unless the context otherwise requires, the
meaning/intention in these rules shall be assigned as per the following
definitions:-
(1) State Government - means, "Micro, Small and Medium Enterprises
Department of the State of Madhya Pradesh."

(2) Central Government - means the "Government of India".

(3) Madhya Pradesh Laghu Udyog Nigam- means, "Madhya Pradesh

Laghu Udyog Nigam Limited constituted and incorporated under the
Companies Act, which is under the Government of Madhya Pradesh,
Micro, Small and Medium Enterprises Department".

(4) Managing Director- means, the Managing Director posted in Madhya

Pradesh Laghu Udyog Nigam.

(5) Commissioner of Industries- means the "Commissioner, Madhya

Pradesh Directorate of Industries."

(6) General Manager, District Trade and Industries Centre - means

the "General Manager posted in the District Trade and Industries
Centre".

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(7) District Trade and Industries Centre - means the offices of
Government of Madhya Pradesh, Micro, Small and Medium
Enterprises Department situated in the Districts of the State.

(8) Micro, Small and Medium and Large Industrial Unit - means the
industrial unit or manufacturing enterprise as defined from time to
time by the "Government of India and the State Government".

(9) Industrial land – Undeveloped / developed / partially developed land

owned by the Micro, Small and Medium Enterprises Department or
the undertakings administered under it.

(10) Industrial area – Means the areas developed/ to be developed on the

land owned / occupied by the Micro, Small and Medium Enterprises
Department or the undertakings administered under it where
industries have been set up or are to be set up, by whatever name it
is addressed.

(11) 11.1 Industrial purpose- means the purpose of setting up industry in

the land/building.

11.2 Commercial purpose - means the commercial purpose as

defined in the Nagar Tatha Gram Nivesh Adhiniyam, 1973 and
the rules made thereunder.

11.3 Residential purpose - means the residential purpose as defined

in the Nagar Tatha Gram Nivesh Adhiniyam, 1973 and the rules
made thereunder.

11.4 Logistics and Warehousing Hub / Park and Warehousing

Purpose -

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 According to the provision contained in the Special Financial
Assistance Package for Logistics and Warehousing Hub/Park
and Warehousing Purpose, issued in the sequence of Industrial
Promotion Policy 2014, it is clarified that the storage of primary
agricultural products shall not be included in the said storage.

11.5 Industries Utility service provider units, which provide to a

particular industry or a group of industries, their
required services such as laundry, steam, natural gas,
electricity.

11.6 Industrial Undeveloped Land - Such land for industrial

purposes owned by the Micro, Small and Medium Enterprises
Department on which infrastructure has not been built for the
establishment of industries.

11.7 Industrial Developed Land - Notified land developed for

industrial purposes by the Micro, Small and Medium
Enterprises Department or the corporations under it.

11.8 Land to be developed- Undeveloped land owned by the Micro,

Small and Medium Enterprises Department or its corporations
for industrial development, in which infrastructure
development is proposed.

11.9 Plot- means a block of land identified by the competent authority

in the approved layout of the industrial area.

11.10 Industrial Building - means any building or structure in which

all types of products and materials are fabricated,
manufactured, assembled or processed.

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(12) Industry Ancillary Purpose- means, ancillary/necessary activities for
industries, whose periodic determination may be made by the Micro,
Small and Medium Enterprises Department from time to time.

(13) Allotting Authority- means, "authorized authority for allotment of

land/building for the purpose prescribed in the rules."

(14) "Allottee" means the person or institution to whom the lease has been

allotted by the competent authority.

(15) Lessor - means the officer who has executed the lease deed with the
allottee on behalf of the Governor of the State of Madhya Pradesh.

(16) Lessee - means "the allottee of the land/building, who has executed
the lease deed with the lessor."

(17) Competent Authority - means the officer authorized to perform the

work mentioned in these rules and the officer authorized to perform
various responsibilities under the Rules/Acts of other departments
mentioned in these rules.

(18) Higher Authority- means, Industries Commissioner in respect of

General Manager, District Trade and Industries Centre and Secretary,
Government of Madhya Pradesh, Micro, Small and Medium
Enterprises Department in respect of Industries Commissioner.

(19) "built-up area" means the area on which construction has been
made. Boundary wall, road, drain shall not be considered as built up
area for the purpose of these rules.

(20) Premium (Premium) - means such an amount which shall be

received in lump sum from the allottee in respect of the land to be
allotted on lease.

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(21) Rent - means an amount to be taken from the allottee of the
shed/building at fixed time intervals.

(22) Lease Rent - means the amount taken from the allottee of the land
every year.

(23) Annual Maintenance Fee - means that amount which may be

received from the allottee every year for the purpose of operation and
maintenance of the industrial area.

(24) Development fee - means the amount taken from the allottee for the
integrated development of the industrial area.

(25) Transfer fee- Means the amount to be taken from the new allottee on
transfer of land/building allotted for industrial, commercial,
residential and warehousing purpose.

(26) Security Fund - means such amount to be received from the allottee
before the allotment of the plot, which may be received from the point
of view of security in order to save from the risk the amounts
payable in future to the Government.

(27) Vacant plot/land – means

(1) the plot/land which has not been allotted to anyone;

(2) such plot/land also in which capital investment of less than 25

percent of the original project amount (excluding the value of the
land) submitted at the time of allotment has been done at the
site.

(28) Unused land - means the vacant part of the land allotted to the
production unit (excluding the open part in the building construction
permit issued by the competent authority) which is not useful for the
unit.

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 (29) *State Level Empowered Committee- means the State Level
Empowered Committee mentioned in Madhya Pradesh
MSME Development Policy 2021/ MSME Development Policy for the
time being in force. (*inserted by State Government Order No. F 06-
01/2021/A-73 dated 21.10.2022)

(3) Purpose - The purpose of these rules is to make the best use of industrial
land, building/shed owned by the Micro, Small and Medium Enterprises
Department and their effective maintenance and management.

(4) Eligibility for allotment of industrial land -

(1) Land, building/shed may be allotted to the following
entrepreneurs/units for establishment of new industry, expansion of
established unit and pre-determined activities/use:-

(i) Large industrial unit.

(ii) Micro, Small and Medium Enterprises Unit.

(iii) Commercial, residential, warehousing unit.

(iv) A unit having an ancillary purpose to the industry.

(v) Industrial/service/ancillary purpose unit to be set up by the

Government of India/State Government or their undertakings.

(vi) Food processing units.

(vii) Industry useful service provider units for establishment of

Effluent Treatment Plants and Hazardous Waste Treatment
Plants in the context of green industrialization.

(viii) Information Technology Investment Units.

(ix) Industry useful service provider units which avail to a particular

industry or a group of industries for their requirements like
laundry, steam, natural gas, electricity.

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 (x) Land shall generally not be allotted to highly polluting and
dangerous category industries mentioned in "Appendix-A"
attached to the rules, but industries of this category shall be
eligible for allotment of land, building/ shed in the same
industrial areas in which such separate zones have been
identified for industries.

(xi) The activities mentioned in "Appendix-B" attached to the rules

shall not be eligible for allotment of land in industrial areas.

(2) The State Government shall notify having determined the boundaries
of the proposed/established industrial areas on the land owned and
occupied by the Micro, Small and Medium Enterprises Department .

(3) The allotment authority shall allot the plot in the industrial area
according to the layout approved by the competent authority.

(4) *Undeveloped land owned by the department may be Allotted to

medium enterprises. Allotment of undeveloped land shall be made
after the approval of the State Government. If more than one
applications are received for any land, then allotment of land shall be
made on “first come- first serve” method. For cluster development, the
undeveloped land owned and occupied by the department may be
allotted and developed according to the process mentioned in
"Appendix-D".(*inserted by State Government Order No. F 06-
01/2021/A-73 dated 21.10.2022)

(5) Layout of industrial areas -

(i) In the industrial areas to be developed after these rules come into
force, the layout shall be prepared applying the following criteria -

(a) for logistic and warehousing hub/park, maximum 10 percent of

the allocable land.

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 (b) for residential and commercial purpose, maximum 20 percent of
the allocable land.

(c) for industry ancillary purpose, maximum 5 percent of the

allocable land.

(ii) The approval of the layout of industrial areas shall be obtained from
the competent authority under section 27 of the Nagar Tatha Gram
Nivesh Adhiniyam.

(iii) The land shall be developed and the plots shall be allotted according
to the approved layout. Provided that it shall be permissible to set up
industry on the plot allotted for residential, commercial, warehousing
activity, provided a lease deed is executed to this effect. Plot allotted
for industry ancillary purpose shall not be allowed to operate or
convert for other purpose.

(6) Determination of the quantity of land for allotment: - The development

criteria for industrial plots shall be as follows: -

S. Minimum Plot Maximum Minimum open Area Maximum Minimum

No. Area covered In M.O.S. Mtr. Floor Area Covered Area
area Ratio (FAR) in Percentage
Fro Sites oppo
in percent
nt site
(1) (2) (3) (4) (5) (6) (7) (8)
1 Up to 0.045 75 2 1.40 1 2 50
hectares /1.40
2 More than 0.045 75 3 2.00/2.00 1.5 2 50
hectares and upto
0.10 hectares
3 More than 0.10 75 5 2.25/2.25 2.25 2 50
hectares up to 0.20
hectares
4 More than 0.20 75 8 3.50/3.50 3 1.50 50
hectares and up to
0.50 hectares
5 More than 0.50 75 8.5 4.50/4.50 4 1.50 50
hectares and up to 0
0.75 hectares
6 More than 0.75 75 12 5.50/5.50 4 1.50 50
hectares and up to
1.00 hectares

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S. Minimum Plot Maximum Minimum open Area Maximum Minimum
No. Area covered In M.O.S. Mtr. Floor Area Covered Area
area Ratio (FAR) in Percentage
Fro Sites oppo
in percent
nt site
(1) (2) (3) (4) (5) (6) (7) (8)
7 More than 1.00 75 12 6.0/6.0 5 1.50 50
hectares and up to
1.25 hectares
8 More than 1.25 75 17 8.0/8.0 2.5 1.50 50
hectares and up to
2.00 hectares
9 More than 2.00 75 19 8.50/8.50 2 1.50 50
hectares
Fore flatted industry
10 Minimum Plot area 75 5 2/2 1.5 2.00 -
1500 sq mtr. (0.15
hectares)

The building construction permission shall be given by the competent

authority according to the above parameters. But in cities where
development plans (Master Plan) are adopted under the Madhya Pradesh
Nagar Tatha Gram Nivesh Adhiniyam, 1973, and where the development
norms are different, permission for construction of buildings under the
investment area shall be given according to the provisions given in the
development plan.
(7) The process of allotment, jurisdiction, rates, process of transfer of land for
industrial, commercial, residential warehousing and industry ancillary
purposes shall be subject to these rules.

Part -I

Allotment of industrial land and building

(8) Authority of industrial land/building allotment :-

The General Manager, District Trade and Industries Centre shall

have the authority to issue letter of intent and allotment order
for industrial land/building and to execute lease deed.

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(9) Premium for allotment of land, development fee, deed rent,
annual maintenance fee and security deposit –

(i) Premium, development fee, annual deed rent, security

deposit and annual maintenance fee shall be payable on
the land allotted under this rule.

(ii) Calculation of the Premium shall be made by giving effect to

the discount given in the value of the land and the annual
deed rent shall be 2 percent of the Premium. The security
deposit shall be three times of the annual deed rent.

If the allottee unit deposits 10 times the amount of fixed

deed rent at the time of allotment of land or after that, then
the allottee unit shall be free from the deed rent for the next
20 years during the validity period of the lease, i.e. after 10
years, such units shall not have to pay deed rent for next 20
years, but after the expiry of 30 years, the deed rent shall
start to be paid again according to the lease. This rule shall
also be applicable at the time of lease renewal.

(iii) Development fee in developed industrial areas shall be

determined as follows -:

1. Rs. 150 per square meter in developed/under-

development industrial area before coming into force of
these rules.

2. The development fee of the industrial area developed

after the coming these rules in force, shall be calculated

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 on the basis of the total expenditure incurred in the
integrated development, but shall not be less than per
Rs. 150 square metre.

The development fee shall be calculated as per the

model adopted by MPIDC which is attached at
Appendix – F.

Development fee shall be payable in lump sum at the

time of allotment of land.

(iv) *With a view of carrying out the maintenance of industrial

areas, the Competent Authority/Commissioner of
Industries shall assess the annual maintenance
expenditure and it shall be proportionately calculated per
square meter on the total allotted area. Annual
maintenance fee shall be payable by the allottee on the area
allotted to him.

“Industrial areas whose elected and registered industry

association give consent in writing to the General Manager,
District Trade and Industries Centre for the maintenance of
the industrial area itself the maintenance work of those
industrial areas shall be handed over to the industry
association. The amount of maintenance fee shall not be
charged by the Government from the units established in
such industrial areas and the amount for the maintenance

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 of such industrial areas shall not be spent by the
Government.

Industry associations may recover the amount by

determining the amount (per square meter) for being
received from the units for the maintenance fee every year.

(*Substituted by State Government order number F 06-

01/2021/A-73 dated 21.10.2022)

(v) The value of the land in the industrial areas developed/to

be developed in the rural areas shall be calculated by
dividing by 0.6 the fixed collector guide line for the non-
irrigated agricultural land of the concerned area.

The value of the land in the industrial areas developed/to

be developed in the urban area shall be calculated by
dividing by 0.6 the fixed collector guide line for the
unirrigated agricultural land located in the said urban area
or near it.

In such industrial areas which include the land of more

than one village, for the purpose of rationalizing the value
of the land for the determination of premium, on the basis
of the area of the combined land of different villages in the
industrial areas, the process of price determination shall be
adopted on the basis of the collector guideline, i.e. the value
of the collector guideline of each included village shall be
given weight, in the proportion in which the land of the

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 village is falling. Premium shall be calculated on the basis of
the value of the land received as above.

Provided that in industrial areas, if the rate of the land

obtained from the said calculation appears to be less, the
Commissioner of Industries shall have the power to
increase the said value with the permission of the
Government. In any case the value of the land shall not be
less than Rs. 250 per square metre.

(vi) Industrial areas developed/ to be developed after coming

these rules in force, which are under the management of
the District Trade and Industries Center, it shall be required
that before allotment the rates shall be approved by the
Industries Commissioner.

(vii) *The value of undeveloped land shall be equal to the

prescribed collector guide line for non-irrigated agricultural
land for the concerned land. The calculation of premium of
undeveloped land shall be determined as per rule 10(1)(a).

(10) Exemption/concession in the value of land for calculation

of premium –

(1) Premium means the amount which is payable by the

allottee in lieu of obtaining the allotment of land.
Premium shall be calculated according to the discount given
on the value of the land, that is, after giving effect to the

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 discount given in the value of the land, the amount of
Premium payable shall be calculated.

(a) Exemption in the value of land for allotment of

industrial purpose lands to be developed and developed
–

No. Area of the land Percentage of

exemption in
value of the land
1. 5000 Sq. mtr. 90%
2. More than 5000 Sq. mtr. Upto 1 75 %
hectares
3. More than 1 hectares , up to 20 50%
hectares
4. More than 20 hectares 0

(Note:- The above rates of Premium shall be applicable only for the plots
allotted for industrial use and the exemption in the value of
the land shall be calculated by the slab (telescopic) method.)
(b) The premium of the land allotted to the warehousing purpose
and industry useful service provider units shall be equal to the
value of the land.
(2) In respect of the liabilities of the allottee units, simple interest
amount at the rate of 10 percent per annum shall be payable for
the delayed period. Simple interest at the rate of 10 percent shall
also be payable on past dues, the previous cases in which the
amount has been deposited shall not be reconsidered.
(11) Application for allotment -
(i) Land developed/to be developed:- Eligible applicant units for
allotment of land in industrial areas developed/to be developed shall
have to apply online by submitting the prescribed application form
and other documents as per the checklist and depositing the amount

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 of application fee. The unit shall have to deposit an advance amount
of 25 percent of the prevailing premium at that time. The application
fee for all units shall be Rs. 5000/-. Application fee shall not be
refundable.
(*Substituted by State Government order number F 06-01/2021/A-
73 dated 21.10.2022)

(ii) According to the check list, the unit shall have to attach the following
record with the application as follows -

1. Brief project report (project profile) of the proposed industrial

activity, which includes a brief description of machinery-plant
equipment and relevant industrial shed, raw material
arrangement, financial management, proposed employment
generation, commercial requirement of the project, necessary
built-up area.

2. Photograph, PAN Card / Aadhaar Card.

3. Time bound program of project implementation.

In case of applying for online land allotment, the unit shall have
to apply in the online application format as per the checklist and
the enclosures mentioned above shall have to be submitted
separately to the allotment officer's office at the time of
allotment.

(iii) Mere submission of application and fee shall not entitle the applicant
to any rights regarding the allotment and quantity of land applied for.
The quantity of land required for the industry may be assessed by the
land allotment authority under the provisions of the rules.

(iv) In addition to the application fee, 25 percent advance amount of

premium prevailing on the date of application for the applied land

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 shall have to be deposited through online RTGS/NEFT/Net
Banking/Cyber Treasury/Challan along with the application. At the
time of issuing the letter of intent, this amount shall be adjusted
without interest and the amount payable shall be calculated. The
time of receipt of the amount shall be calculated according to the
time of receipt of the amount in the account of the Government.

(12) Procedure for disposal of applications: -

(i) Plots to be allotted for industrial use in all developed and to be

developed industrial areas: –

(a) The allotment of plots shall be made in the following manner –

(i) Allotment of all industrial plots to be developed and to be developed

shall be made only through electronic portal on “first come first
served” basis. For this the following procedure shall be followed-

1. A list of all the allottable plots shall be prepared by the General

Manager, District Trade and Industries Centre at the end of every
month.

2. The above list of plots shall be published by the General

Manager, District Trade and Industries Centre on the
departmental portal and in two newspapers by the 7th of the
next month.

3. Applications shall be invited from 25th of the month. As soon as

the first application is received, the letter of intent shall be
issued if eligible after the scrutiny. The plots, for which not a
single application is received shall be available for allotment till
the last date of that financial year.

4. Plots which are disposed by the above method, they shall be

required to deposit the entire balance amount in the next 45

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 days from the issue of letter of intent. Under special
circumstances, the Industries Commissioner may extend this
period by 15 more days.

5. After receiving the information of depositing the amount, the

General Manager, District Trade and Industries Centre
shall execute the lease of the concerned plot in favor of the
allottee.

6. The process of lease execution shall have to be completed within

a maximum of 60 days from the allotment order. The said period
may be extended by 30 days by the Directorate on the basis of
proper reasons.

Auction for industrial plots should be replaced with first come

first serve.

(* substituted by State Government order number F 06-

01/2021/A-73 dated 21.10.2022)

(ii) **Allotment of undeveloped land- The information of allottable

undeveloped land shall be displayed on the departmental website.
The application along with the relevant documents shall be submitted
in the District Trade and Industries Centre for allotment of
undeveloped land as per its requirement from the land displayed on
the website by the medium enterprise. After examining the case by the
General Manager, District Trade and Industries Center, after
determining the quantity of land required according to rule 6, the
proposal with opinion shall be sent to the Directorate of Industries.
The Directorate of Industries shall submit proposal to the State
Government. The State Government shall decide the allotment of land
on the basis of merit. After the approval of the State Government, the
process of allotment of land shall be done by the General Manager,

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 District Trade and Industries Center. (**Inserted by State Government
Order No. F 06-01/2021/A-73 dated 21.10.2022)

(b) Determination of refund of advance deposit –

To refund the advance (25% of Premium) deposited with application, on

receiving application regarding rejecting the land allocation application,
after deducting 10 percent of the advance premium amount, a maximum
amount of Rs. 5000/- and received application fee and G.S.T. the balance
advance premium amount shall be refunded. Provided that such
applications should be received one day prior to the date of starting *First
Come First Serve. (*partially substituted by State Government order
number F 06-01/2021/A-73 dated 21.10.2022)

(c) The rates of deed rent (2 percent of the original premium) and security
fund shall be calculated on the basis of the rate of collector guide line
prevailing on the date of issue of notice of First Come First Serve.
However, 25 percent advance amount of premium deposited along with
the application, shall be adjustable.

(*Partially substituted by State Government order number F 06-

01/2021/A-73 dated 21.10.2022)

(d) The allotting authority may allot land to a unit in an industrial area where
infrastructure development work has been started, electronically on basis
of first come first serve, provided that the unit shall pay the prescribed
amount/ premium and development charges. But the possession of the
plot shall be given to the applicant only after the completion of the
development work.

(*partially substituted by State Government order number F 06-

01/2021/A-73 dated 21.10.2022)

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(13) Letter of intent for plot/building, allotment order, execution of lease
deed and possession:-

(i) Letter of Intent: Letter of Intent shall compulsorily be issued

through the online system within 07 days on the application received
under the First Come First Serve principle. The applicant shall have
to deposit the amount within 45 days from the date of issue of letter
of intent. Under special circumstances, the Industries Commissioner
may extend this period by 15 more days. On issuance of letter of
intent under First Come First Serve principle, after cancellation, fresh
applications shall be invited.

(ii) Issuance of allotment order: After completion of the process

mentioned under rule 13 (i), after fulfillment of the conditions of the
letter of intent, which includes payment of required amounts as *first
come first serve amount/premium, advance annual maintenance fee,
advance deed rent and security deposit, the allotment order shall be
issued by the lessor after mentioning the number of the specific
plot/building, sector and boundary within 7 days. (*partially
substituted by State Government Order No. F 06-01/2021/A-73
dated 21.10.2022)

(iii) Execution of Lease Deed: After fulfilling the conditions of the

allotment order, the applicant shall have to execute the lease deed in
the prescribed format (Appendix-E) and get it registered within 60
days. If the lease deed is not executed within the time period, the
allotment order shall stand cancelled itself. If the lease deed is not
executed by the allottee within 60 days due to satisfying reasons,
then on the basis of merits, the time period may be extended for a
maximum period of 30 days by the Commissioner of Industries after
receiving the application for extension of period. The execution and
registration of lease deed may also be done in electronic form.

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 (iv) In case of non-registration of the lease deed within the prescribed
period, the allotment order shall be cancelled itself. thereafter, 90
percent amount of premium deposited and 100 percent amount of
development fee shall be refunded by the allotment officer without

interest.

(v) Possession/Transfer: Within 15 days of the registration of the lease

deed, transfer the possession of the land, building/shed in favor of
the lessee by the lessor shall be necessary. The possession letter shall
be prepared in two copies in the prescribed format, it’s one copy shall
be kept with the lessee and the other copy shall be kept in the office
of the lessor. If the lessee does not take possession within the
prescribed period, it shall be deemed that he has taken possession
(deemed possession) from the date of execution of the lease deed.

(vi) in the cases, where specific permissions such as pollution control

laws/rules, rules related to explosive substance products, forest
department, excise department, controller, drugs and cosmetics
etc. are required for setting up industry, such permissions shall not be
considered binding in execution of lease deed and granting
possession. In such cases, if the permissions are not obtained even
within one year of possession, the allottee may surrender the land and
get refund 90 percent of the amount of premium and development fee
under the provision of rule (24). If the building etc. has been
constructed by him, then he shall have the facility to move/remove
his assets.

(14) Period of lease - The period of lease shall be 99 years for all the
allotments.

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(15) Implementation of the project:-

(i) Commencement of production by the unit:- Every lessee shall

have to, getting the possession of the land/building, implement the
project in a specified time period. For this purpose, after taking all
the necessary effective steps, completing construction of building and
establishment of machine-plant as per rules, commercial production
shall have to be started in the industry in the following time period.
The time period shall be calculated from the date of execution of the
lease deed.

(a) two years in the case of micro and small scale industries.

(b) Three years in the cases of medium scale industries.

(c) Four years in the cases of large industries.

(d) 05 years in case of Defense Product Manufacturing Units.

(ii) The lessee shall have to inform the District Trade and Industries
Centre in writing (through online) within the following time period
that minimum 25 percent capital investment on the machinery and
plant has been made as per the proposed project on the allotted land
and the unit is ready for production-

(a) From one year and six months to two years in the case of micro
and small scale industries.

(b) From two years and six months to three years in the cases of
medium industries.

(c) From three years and six months to four years in the cases of
large industries.

(iii) In the case of developed land and building, in case of at least 25

percent fixed capital investment on site in building and machinery in

22
 the period mentioned under sub-clause (ii), the time limit of one year
shall be extended free of cost by the Commissioner Industries.
Thereafter, the time limit of one year may finally be extended by the
Government by imposing a penalty amount of 10 percent of the
prevailing premium, even after that if the unit does not start the
production, the allotment to the unit shall be canceled.

(iv) For each extension of time, the unit shall have to submit an
application to the concerned authority with satisfying reasons before
the expiry of the previously granted time period.

(v) Full utilization of the allotted land:- Within five years from the date
of commencement of commercial production by the unit, the land
shall have to be used after making minimum construction on the
allotted land according to rule 6, otherwise the land declaring as
unusable, the process of taking back the land in addition to the
criteria shall be made by the lessor. The premium amount and
amount of development fee of the unusable land shall not be
refunded to the unit, the declared unusable land shall be specified as
vacant land, thereafter, this land shall be available for allotment,
which shall be allotted to other new unit at the prevailing rate.

In the cases, where taking possession of the surplus land, it is not

possible to allot it to another unit, the unutilized land shall be liable
07 times the prevailing deed rent every year till the land is fully
utilized,

Defense Product Manufacturing Units shall be given a period of 10

years for full use of the land.

(16) Assignment of leasehold in favor of bank/financial institutions:-

(i) in favor of the Scheduled Banks licensed under the Reserve Bank of
India and Public Financial Institutions declared under the Companies

23
 Act, 2013 or the Financial Corporation established under the State
Finance Act, 1951 and any other licensed financial
institution, assignment of the leasehold granted to him by the
lessee shall be allowed by giving prior information to the General
Manager, District Trade and Industries Center. Such assignment shall
not include buildings/sheds already constructed by the department.
In every situation, the liabilities of the State Government shall be the
first burden on the land, building/shed.

(ii) Before taking any action of recovery under the terms of any
agreement executed between the lessee unit and the financial
institution, the concerned financial institution shall have to give at
least three months notice to the concerned General Manager, District
Trade and Industries Center.

(iii) On transfer of the unit acquired by the bank/ financial

institution/ Corporation to any other, issuing permission to transfer
the land/industrial building, the lease deed shall be executed only
when the bank/financial institution or the new unit pays the due
amount of the lease on the original lessee and get the lease deed
executed in favor of the new allottee as per rules for the time being in
force.

(17) Regularization of additional land:-

* Any such land of the department adjacent to the leased plot granted to
an industrial unit, for which there is no separate road or is not allocable
as an independent plot, then regularization of the land shall be done only
for the units located on the boundary of that land through online auction
method in favor of the highest bidder. If only one unit is situated on the
boundary of additional land, then regularization of land may be done in
favor of that unit with the permission of Industries Commissioner.

24
 (*Substituted by the order number F 06-01/2021/A-73 dated 21.10.2022
of the Government of Madhya Pradesh, Micro, Small and Medium
Enterprises Department)

(18) Transfer and transfer procedure:-

(a) transfer means:-

1. In case of any proprietary or partnership or limited liability firm

units, if the new unit does not come into existence after dissolution of
the unit and their both PAN No. and GST No. remain the same then
the transfer on the basis of change in share/shareholding of such
units shall not be considered. In these cases, the unit shall have to pay
only Rs. 10000/- transfer fee. On dissolution of the unit, if the PAN
No. and GST No. changes, such unit shall be considered in the
category of transfer. In these cases 10 percent of the prevailing
premium shall be payable transfer fee.

2. Under the Companies Act 1956/2013, when the Corporate

Identification Number (CIN) of the company is changed by the
Registrar of Companies, the case shall be considered as transfer
category. But even if the registration number of the company is
changed, the case shall not be considered in the transfer category
under the following circumstances and permission for amendment in
the lease deed shall be given on payment of a fee of Rs 10,000 only –

(i) On merger, Consolidation or amalgamation of the company or on

transfer of assets in any other way, if all the shareholders/
directors of the former company continue to be shareholders/
directors of the new company.

(ii) on the merger of the wholly owned subsidiary company with its
parent operating company or on the merger of the parent
operating company with the wholly owned subsidiary company.

25
 (iii) Nature of companies coming into existence on demerger of
parent holding company if holding company and subsidiary
company remain.

3. In case of change in the constitution of the proprietary/ partnership

unit, close relatives of of the original lessee - husband/wife,
mother/father, son/daughter, daughter-in-law/ son-in-law and
grandson/granddaughter, brother-brother, brother- sister, sister-
sister shall be given permission for transfer of the industrial
land/building by the allotment authority after taking transfer fee of
Rs. 10000/- only.

4. * plots in which the amount of development fee has been paid, re-
development fee shall not be payable in the transfer. Provided that on
transfer for different purpose from the earlier purpose, if the
prevailing premium for the changed purpose is higher then the
difference amount of the premium shall also be payable.

If an industrial unit has been allotted undeveloped land outside the

industrial area, no development fee and maintenance fee shall be
payable for its transfer.

(*substituted by State Government order number F 06-01/2021/A-73

dated 21.10.2022)

5. The lease rent shall be effective according to the terms of the lease to
leaseholders previous to these rules come into force, but as a result
of the sale / transfer of the former unit, the lease rent shall be effective
on the new unit as per the new rules.

6. All cases of transfer which have been finally resolved as per previous
rules, may not be opened for re-examination under these rules, but all
the cases under process shall be governed by these rules.

26
 7. *Madhya Pradesh IT, ITeS & ESDM, the units mentioned in the
Investment promotion policy 2016/ policy for the time being in
force, the transfer of land may be done after the approval of the State
Government.

(* Inserted by the State Government Order No. F 06-01/2021/A-73

dated 21.10.2022)

(b) The permission for transfer shall be subject to the following

conditions:-

(i) at the time of allotment of land to the allottee unit, at least 25 percent
of the fixed capital (excluding the cost of the land) of the project
submitted should have been invested.

(ii) In cases of land transfer of units established in undeveloped

industrial land or developed industrial areas, the new unit shall have
to pay ten percent of the prevailing premium to as transfer fee and
annual maintenance fee (which shall not be payable on undeveloped
land) and amount of land rent at the prevailing rates payable
separately, in cases which do not fall under the category of transfer,
the amount of annual deed rent shall be unchangeable at the time of
revision of lease deed.

(iii) Due amount of lease being received from the original allottee/lessee
shall be paid by the original lessee or the new allottee in lump sum
before transfer. The transfer of the unit acquired by the
bank/financial institution shall be effective only after the
bank/financial institution or the new unit clears the dues of the
original lessee. Thereafter the lease deed shall be executed in favor of
the new allottee as per prevailing rules.

27
(c) Procedure for transfer:-

(i) If the original lessee sells the constructed factory building, installed
machinery, then an agreement of sale shall be executed between the
buyer and the seller mentioning complete details of the assets being
sold and with this the transferor shall submit application to the
allotting authority for permission of transfer the land/shed under
transfer. Where the application for advance permission has not been
submitted, it is necessary to apply within a maximum of three
months from the date of sale of the land/shed. For the period after
the prescribed time limit, the amount shall have to be paid at the rate
of 10 percent simple interest on the transfer fee.

“Along with paying the dues of the department a notarized affidavit

regarding the dues of the bank, financial institution, other
government department etc. shall have to be submitted along with
the application for transfer.”

(ii) The transferee shall submit the prescribed format of land allotment
and project profile of the unit to be set up by him to the transferor
authority along with his application. It is clarified that transfer shall
not be permitted without payment of dues of the department.

(iii) The transferee shall collect the original lease deed from the transferor
after depositing the dues and submit it along with the amended lease
deed to the lessor for execution. The lessor shall execute the amended
lease deed within 7 days (for the remaining period of the original lease
period) and hand it over to the authorized person of the unit for
registration. It shall be mandatory for the unit to register the lease
deed within 30 days. After registration, the original copy of the lease
deed shall be kept with him and the certified copy shall be deposited
in the concerned District Trade and Industries Center. If the transferee
does not proceed within the said time period, action shall be taken to

28
 cancel the transfer permission and to transfer the ownership of the
land/building to the State Government.

(iv) *In the cases of canceled plots, while restoring the lease deed,
appellate authority may be give permission for transfer:

Provided that in such cases in which the allottee unit continues the
production despite the cancellation of the lease deed, the appellate
authority may allow the reinstatement of the unit on depositing 100
percent premium amount.

(*substituted by State Government order number F 06-01/2021/A-73

dated 21.10.2022)

(19) Transfer of unused land -

*Para 19 (A)- Transfer of unused land of working units

Permission for transfer of maximum 75 percent of the land allotted to the

working unit and minimum 500 square meters of unused land (on the
condition of availability of separate access road) may be given on
depositing the amount of 100 percent premium, obtaining permission for
amendment in the layout of the industrial area from the competent
authority. The allotment authority shall determining the eligibility of the
unused land, declare it as unused land pursuing rule 6. It is clarified that
a additional premium shall be payable at the time of allotment of land
declared unusable under this rule, which is in addition to the premium
received at the time of original allotment. Permission shall be granted only
after payment of other dues as deed rent, maintenance charges etc. by the
transferor before this transfer.

For the transfer of the said unused land, it shall be mandatory for the
original allottee to get the registration done by amending the original lease

29
deed and executing the surrender deed. The unit may get the benefit of the
said facility only once in its lifetime.

(* substituted by the State Government order number F 06-01/2021/A-73

dated 21.10.2022)

** Para 19 (b) – Division and transfer of land allotted to closed unit

In view of proper use of the allotted plot to closed industrial units which
have been in production for at least 05 years and have been closed for at
least 02 years, permission shall be granted, as per eligibility, for transfer of
the plot by separating it for setting up a new industry. The conditions for
separation of plots to these units in industrial area and in undeveloped
land shall be as follows:-

1. All the court cases related to the plot filed by the parent unit shall
have to be withdrawn.

2. If the undeveloped land is located under the development plan area,

then the use of the land in the prevailing development plan should be
industrial.

3. The area of any of the divided plot should not be less than 500 square
meters and there should be an independent way to come and go in
the plots. The layout of the divided plots shall be approved by the
officer authorized by the state government.

4. The new units shall required to pay 100 percent of the prevailing
premium as premium for allotment of land and as per rules, the
annual deed rent shall be calculated on the basis of prevailing
premium.

5. Procedure to make application – The original allottee shall be required

submit the proposal to the District Trade and Industries Centre which
shall be forwarded to the Directorate of Industries along with the

30
 facts by the District Trade and Industries Center. The case shall be
sent by the Directorate of Industries to the State Government for
acceptance. The final decision for acceptance in the case shall be
taken by the State Government.

6. The development of infrastructure development/industrial park on

division of undeveloped land shall be done within a time limit of 1
year from the date of in-principle approval by the original allottee. If
the work is not done within the time limit, in case of proper reasons,
time limit may be increased by a maximum of 1 year by the
government.

7. In case of development of industrial area on undeveloped land, the

development fee shall not be collected by the government.
Maintenance fee may be collected from the newly allotted units by the
District Trade and Industries Center. The maintenance fee shall be
determined by the competent authority.

8. The portion of the plot of unit on which the asset is built, before
transfer of that part to the new units, the original unit shall have to
present the registered sale deed, after which the lease deed may be
executed in favor of the new unit.

9. The competent authority shall first issue in-principle approval on the

received proposal, which shall be valid for one year. The lease deed of
the new units shall be executed only after the parent unit makes full
payment of all the previous dues of the department within a period of
1 year. The allotted new unit/units shall have to start production as
per prevailing land allotment rules.

10. The responsibility to pay the dues of the State Government

departments like commercial tax department, energy department and
other related departments against the parent unit shall lies on parent

31
 Unit and in this regard the no-objection certificate should be
submitted to the parent unit within 1 year from the date of in-
principle approval.

11. Such units who have assigned the original lease deed to any financial
institution, shall ensure that they obtain a no-objection certificate
from the concerned financial institution within one year from the date
of receipt of in-principle approval,.

12. If the area of the land allotted to the original unit is less than 10
acres, as per approval of map, the transfer of all the divided plots and
execution of lease deed shall be done to the new units within 18
months from the date of in-principle approval.

If the land area allotted to the original unit is more than 10 acres
then as per approval of map, the transfer and lease deed execution of
all the divided plots shall be done to the new units within 2 years
from the date of in-principle approval.

As per above, all the vacant plots which have not been transferred by
the original unit within the said time period, then such plots shall be
treated as unallotted plots and the possession of the vacant plots
shall be obtained by taking unilateral action by the District Trade and
Industries Center. In this regard, an affidavit shall be taken from the
parent unit before starting of the process or issuance of in-principle
approval.

In case of violation of the conditions related to division and transfer of

plots, the possession of the land shall be taken over by the District
Trade and Industries Center. An affidavit shall be taken before giving
in-principle approval to the parent unit.

13. The allotment of the plot shall be made by the District Trade and
Industries Centre on the recommendation of the original allottee and

32
 the lease deed of the plot shall be executed between the District Trade
and Industries Centre and the new allottee according to the as per
the prevailing land allotment rules.

14. On the approval of the map for the division of the plot on the original
allotted land, the interest of the land left for infrastructure
development / green belt etc. shall be calculated separately on the
basis of merit considering the proper use of the land.

15. Units obtaining grants shall be allowed for division and transfer of
plots only on the condition that they remain in production for the
stipulated period after receiving the grant as per the departmental
policy/scheme.

(** Inserted by the State Government Order No. F 06-01/2021/A-73

dated 21.10.2022)

(20) Division of land: -

After execution of the original lease, the division of the land among the
successors/heirs/partners (if the partner has been a partner in the
respective partnership firm for at least 5 years before) may be made with
the permission of the allotment authority on depositing Rs. ten
thousand permission fee subject to condition that the area of the plots
formed after division should not be less than minimum 500 square
meters. This division shall be permitted only once in context of a
particular plot and shall be valid on the condition of obtaining permission
from the competent authority for amendment of the layout plan in the
context of the division of the plot. It shall be mandatory to register the
amendment in the original lease record in the sequence of division as
above.

33
(21) Permission for Shikmi/sub-lease of plots:-

The General Manager, District Trade and Industries Centre may grant
sublease permission to all types of units subject to the following
conditions.

Such new vendors units which are to be established in the premises of

only those industries which are allotted minimum 10000 square meters of
land and wherein establishment of vendor units is required, through
which minimum 75 percent of their sales are sold/supplied/services
provided to the mother unit shall be eligible to sub-lease/sub-lease the
land and shed allotted to them by the mother unit.

If the state government has allotted government land on lease for

developing an industrial area/multi-storied industrial complex, then the
allottee mat give the plot/building on sub-lease as per the approved layout.

For the purpose, a tripartite agreement shall be executed between the

original lessee, the lessor and the sub-lessee/tenant. The general terms
and conditions of the sub-lease are at Appendix-C.

(22) Renewal of lease:-

After the expiry of the lease period of the land allotted to regular producing
industrial units, of the lease period may be the renewed by the allottee
officer after deposit of two percent of the prevailing premium amount at
the time of renewal. After every renewal, the unit shall have to pay ten
times the effective lease rent or the lease rent prevailing at the time of
renewal, whichever is less. If any unit deposits a one-time advance of 10
years of deed rent at the time of lease renewal or during the lease period, it
shall remain free from deed rent for the next 30 years. But after the end of
this 30 years period (if the lease period is left), the deed rent and other
dues shall be payable again under the terms of the lease.

34
 Such industrial units which are producing regularly and have
executed lease deed by obtaining allotment of land for 30 years, apply for
lease renewal or extension of lease period before the expiry of the lease
deed, then by accepting the renewal of lease, b deposit of two percent of
the prevailing premium amount on each renewal. The allotment officer
may renew the lease or increase the lease rent. Amendment in the lease
deed should be made by accepting ten times effective lease rent after
renewal of lease or the prevailing lease rent at the time of renewal,
whichever is less. But the maximum period of lease shall not exceed 99
years.

(23) Sale of sheds under rental/hire purchase method:- *Allotment of shed

on rent

It shall be made on 'first come first serve' basis for a maximum period of
30 years. The rent of the shed shall be 2.5 times of the rent fixed in the
rules of the year 2008.

The sale of sheds shall be made after approval of the committee

constituted by Government order No. F 6-1/2021/A-73, dated
08.06.2021, for the sale of flats of multi-storied building after
determining the process separately.

(* substituted by the State Government order number F 06-01/2021/A-73

dated 21.10.2022)

(24) Surrender of leased land and refund of premium and development fee:
-

(a) Surrender:- The lessee may surrender the leased land partially or
completely, giving his intention in writing to the lessor by giving three
months' notice. The lessor may cancel the surplus land if the lessee
does not fully utilize the leased land. The lessor shall have the right to
re-enter the abandoned/surrendered land/premises. In case of

35
 surrender of land, the lease after executing the surrender deed and its
registration may surrender the premium and development charges as
per the rules, which were paid by the lessee at the time of
allotting/leasing the land to the lessee.

The amount of extradition shall be calculated as follows-

1. 90 percent, if the surrender of the allotted/leased land is made within

two years in case of small scale industries and surrender is made
within three years and in case of large and medium scale industries
surrender is made from the date of obtaining possession.

2. 80 percent, if the surrender of the allotted/leased land is made after

two years but within three years in case of small scale industry and
after three years but within four year surrender is made and in case of
large and medium scale industry.

3. 70 percent, if the surrender of the allotted/leased land is made after

three years but within four years and in case of small scale industry
four years but within five years .

4. 50 percent, if the land allotted/leased is surrendered after a period of

four years but before six years in case of small scale industry and after
five years but before seven years.

In case of cancellation of allotment, the amount shall be returned as

per clause 24(a) on handing over the possession of the allotted
land/building within a period of six months from the date of
cancellation.

In appeal cases, this period shall be valid for six weeks from the date
of order issued by the appellate authority.

36
(25) Allotment of land for the residence of labor / technical staff :-

In industrial areas, the lessee unit may construct a building for the
residence of workers/technical staff with a maximum of 10 percent of the
floor area ratio approved under the lease. The lessee shall have to
construct safe residences keeping in view the disaster management and
industrial health and safety, following various rules, in which only the
essential workers/technical staff employed by the lessee unit may reside.
These buildings shall not be bought and sold, nor may they be given on
rent to anyone else. For this purpose, building construction may be done
only on the ground floor and maximum on the first floor and permission
for this purpose shall be granted by the General Manager, District Trade
and Industries Centre as per the Prevailing building permission.

(26) Under the following conditions, by the General Manager, District Trade
and Industries Center, may be give permission to the industries
for plantation in the areas available for green belt, on road side located in
front of them or in the industrial areas.

1. Plantation work shall be done by the unit at its own expense only on
the area identified in the layout by the District Trade and Industries
Center.

2. Temporary fencing may be erected for the security of the area.

3. The pipeline etc. passing through the marked area shall have to be
kept safe.

4. In case of necessity, pipelines may be laid for drainage on the said

part by the District Trade and Industries Centre and arrangements.

5. This permission shall be temporary.

37
 6. If water arrangement etc. is necessary for irrigation, then water
connection shall have to be obtained from the District Trade and
Industries Centre as per the rules and payment shall have to be made.

7. Initially this permission may be granted temporarily for 05 years.

8. This permission shall be canceled if any condition is violated or if the

General Manager, District Trade and Industries Centre needs this land
for any other industry.

9. Before undertaking tree plantation and fencing work, action for tree
plantation and fencing etc. should be taken only after getting the site
marked by the General Manager District Trade and Industries Centre
contacting him.

10. Other conditions which may be given by the District Trade and
Industries Center.

11. The ownership of the land shall remain with the Department of Micro,
Small and Medium Enterprises only.

(27) The General Manager, District Trade and Industries Centre shall maintain
the related documents and shall make them available to the Revenue
Officers at the time of requirement.

38
 Part -II

Allotment of land for residential and commercial purpose

(28) Jurisdiction of land allotment -

The jurisdiction of land allotment for residential, commercial and

warehousing purpose in developed/under-development industrial areas
shall be as follows -

(A) General Manager, District Trade and Industries Centre- up to 10000

sq. metre.

(B) Commissioner of Industries - more than 10000 Sq. metre

(29) Rates for allotment of land –

Allotment of plots for residential, commercial and warehousing purposes

shall be done through a transparent auction process. The minimum
amount of premium (base price) for allotment of land shall be equal to the
value of the land determined under Rule 9 for allotment of land for
industrial purpose of that industrial area and 100% of the development
fee. The land shall be allotted to the successful bidder in e-auction.

For allotment of land through e-auction, the minimum amount of

premium (value of land) shall be 2 percent of the annual lease rent.

In respect of the liabilities of the allottee units, for delayed period simple
interest amount at the rate of 10 percent per annum shall be payable.

(30) The procedure of allotment -

*Allotment of plots identified for residential, commercial and warehousing

purposes in industrial areas/development centers shall be made under
open e-tendering process.

In the auction process (e-tendering), letter of intent, allotment order,

execution of lease deed, registration of lease deed and possession process
in favor of the successful buyer of the plot as per rule 13 of Part-1 and no
objection of assignment of lease right in favour of banks/financial
institutions as per Part-1 rule 16, permission for division of plot shall be
as per Part-1 rule 20 shall be made. It shall not be necessary for the sub-
lessee to be a vendor unit for sub-lease purpose in such plots.

39
 (* substituted by the State Government order number F 06-01/2021/A-73
dated 21.10.2022)
(31) Period of lease - The maximum period of lease shall be 99 years for the
land.
(32) Implementation of the project -
For the purpose of residential, commercial and warehousing purposes, at
least 50 percent ground coverage of the permitted ground coverage of the
plot shall have to be done within a period of four years from the date of
possession. After the prescribed time limit, one year extension may be
done free of cost by the allotment authority. In addition to the above, one
year extension may be done by depositing 10 percent of the prevailing
premium. For each extension, the unit shall have to submit an application
to the allotting authority with satisfactory reasons.
In case the lessee does not make full use of the land, the allotment
authority shall have the right to cancel the lease and the lessor may re-
enter in such land.
(33) Transfer –
The permission for transfer of plots allotted for residential, commercial
and warehousing purposes may be granted by the allotment authority
with a transfer fee of ten thousand rupees. But transfer shall be restricted
for 5 years from the date of allotment.
(34) Renewal of lease -
After the expiry of the lease period of the land allotted for this purpose, the
renewal of the lease period may be done by the allotment authority by
depositing an amount of 2 percent of the prevailing interest amount for
this purpose. After the renewal, the allottee shall have to pay lease rent ten
times of the pre-lease rent or the lease rent prevailing at the time of
renewal, whichever is less.

40
 Part -III

Industry ancillary purposes

(35) Jurisdiction of land allotment -

For the purpose of industry ancillary in such industrial areas which are
developed or to be developed, for the following industrial ancillary
purposes shall be allotted in identified land at a premium amount of Rs.
one with the permission of the State Government

(36) The following uses shall be valid under the use of industry ancillary
category –

(i) Industry Union Office / Union Community Building (Allotment

eligibility maximum 1000 sq. m.) Only 01 plot in each industrial area
shall be eligible for allotment for this purpose.

(ii) Department or institution of Central and State Government which is

related to industrial activity.

(iii) Electrical sub-station

(iv) Police Station/Chowki

(v) Water treatment plant

(vi) Joint Pollution Control Plant

(vii) Fire Brigade

(viii) Public drinking water

(ix) Public toilets

(x) For the infrastructure of public welfare schemes of the government

(xi) Any other activity as defined by the Department of Micro, Small and
Medium Enterprises from time to time.

41
(37) Rates for allotment of land :-

Allotment of land for the above purposes identified for industry ancillary
purposes shall be done at a one rupee premium.

Development fee and annual maintenance fee shall be payable only to the
Industry Association Office/Union Community Building as per rules.

(38) Process of allotment :-

Process of allotment- The General Manager, District Trade and Industries

Center, on receipt of the application for the above identified purposes,
shall examine the requirement and forward the application along with the
recommendation to the Industries Commissioner. The Industries
Commissioner, after examining the matter, will send recommendation to
the Administration, Micro, Small and Medium Enterprises Department.
After obtaining the permission from the government, the land allotment
proceedings and the lease deed shall be executed by the General Manager,
District Trade and Industries Center.

(39) Period of lease :-

The lease period shall be maximum 99 years for the land.

(40) Implementation of the project :-

The project shall have to be completed within a period of 03 years from the
date of possession, otherwise the land shall automatically be vested in the
Micro, Small and Medium Enterprises Department.

(41) Transfer :-

The plots allotted for these purposes shall not be transferred.

42
(42) Renewal of lease :-

In case the activity is conducted after the expiry of the lease period of the
land, the renewal of the lease shall be done free of cost.

Part -IV

(43) Cancellation of lease :-

The cancellation of the lease rights/lease deed granted to the lessee/ his
transferee/ his assignee by the concerned General Manager District Trade
and Industries Centre may be done for violating any condition of the lease
deed.

If the lease/ its transferee or assignee makes any violation of the terms of
the lease deed, 30 days notice shall be issued by the allotment authority
through electronic medium (e-mail). And as soon as the notice reaches at
the domain server of E-mail, it will be presumed as service of the
Notice. The consent of the above should be obtained at the time of
allotment of land to the unit. It shall be mandatory for the lessee to reply
to the information letter within 30 days. assuming that the lessee has
nothing to say in his defense, if the reply is not received in the time limit,
the General Manager, District Trade and Industries Centre may take further
action.

Information letter/cancellation order or other necessary correspondence to

be issued as per the above process shall be sent to the allottee through
electronic means. A copy of the information letter and cancellation orders
shall also be endorsed to the lessee's known financial institutions.

It shall be necessary to pass the order within 60 days time period from the
date of issue of the notice by the concerned General Manager, District
Trade and Industries Center. If the order is not passed within the time limit,
the information letter shall be considered cancelled, however, the new
information letter shall be issued again by the allotment officer.

43
 The cancellation order shall contain the appeal provision, the designation
and office address of the appellate officer, the appeal fee, to whom the
appeal fee shall be payable and the prescribed period for the appeal shall
be mentioned and it shall be informed that the copy of the appeal should
also be submitted to the canceling officer.
(44) Appeal:-
(1) *Being aggrieved with the original cancellation order passed/issued
under these rules, the lessee/party within a period of 30 days from
the passing of such order, may file an application before the
jurisdictional competent authority as mentioned in clause 44(2) of Rs.
5,000/- along with appeal fee. The disposal of appeal applications
received after the said period may be considered keeping in view the
status of the case, investment made and employment.
The appeal fee payable to the Appellate Authority is non-refundable.
(*substituted by the State Government order number F 06-
01/2021/A-73 dated 21.10.2022)
(2) The jurisdiction in respect of appeal shall be as follows:-
*The first appeal against the original cancellation order passed by the
General Manager, District Trade and Industries Centre shall be
preferred before the Industries Commissioner and against the order
passed in the first appeal, the second appeal may be made before the
Government of Madhya Pradesh, Micro, Small and Medium
Enterprises Department.
(*substituted by the State Government order number F 06-
01/2021/A-73 dated 21.10.2022)
(3) Procedure for disposal of appeal:-
Appellate unit shall be informed by fixing the date the appellate
authority for the hearing within 15 days of the receipt of the appeal
and within 60 days, the appeal shall be disposed after giving
maximum 3 hearing opportunities. The original order in the appeal

44
 may be kept as it is or may be canceled or may be partially amended
in the original order.
(45) Getting possession of land, building/shed on cancellation of lease
deed:-

(i)(a) If the lessee has not constructed/established any of his assets in the
allotted land/shed, the possession of the concerned land/shed shall
be taken by the allotment authority /his representative after
cancellation of the lease deed.

The allotment authority or his representative, before obtaining the

possession, shall inform the details of the order of cancellation of the
lease deed by giving lessee of the canceled lease through electronic
means, and hand over the possession of the land and shed under the
canceled lease. If the lessee of the canceled lease is not present on
due date and time, the possession of the land/shed may be recovered
by the recipient by preparing the panchnama and the signatures of
the other panch/witnesses shall be obtained by mentioning the full
names, positions and addresses of the panchnamas. After getting
the possession, this information shall be sent to the affected party.

In case the decision of lease cancellation is upheld in the appeal, the

allotment authority shall compulsorily obtain the possession
immediately as per the above procedure.

In case the unit constructs only boundary wall and chowkidar

quarter on the plot, the plot shall be considered as vacant plot
category.

(b) If any infrastructure is constructed in the premises of the unit, the

possession of the land shall be obtained by initiating eviction
proceedings under the Act, considering it as unauthorized occupation
under Section 2(g) of the MP Public Premises Eviction Act, 1974.

45
 Vide Notification No. F-1-21-2001-Two-A(3) issued by the
Government of Madhya Pradesh, Home Department dated
24.01.2001, the General Manager, District Trade and Industries Centre
within his jurisdiction, has been declared the competent authority in
respect of the lands, buildings and buildings located in industrial
areas, institutions, development to exercise the powers under the MP
Public Premises Eviction Act, 1974, therefore the eviction proceedings
shall be initiated by the General Manager, District Trade and
Industries Center.

(ii) The General Manager, District Trade and Industries Centre may
recover of outstanding departmental dues on the unit as land revenue
as per the procedure under the Land Revenue Code, 1959.

(iii) After the cancellation of the lease deed, when the possession of the
land is returned to the District Trade and Industries Center, the said
plot shall be eligible for fresh allotment.

(iv) In case of any dispute, the Madhya Pradesh High Court shall have
the jurisdiction.
(46) Rights of explanation and interpretation: -

In case of any ambiguity or dispute arises in the rules, the Department of

Micro, Small and Medium Enterprises shall be authorized for
interpretation and their decision shall be final and binding.

Under these rules, as per the requirement, various forms including all
lease deed, transfer deed may be issued by the Commissioner of Industries
with the approval of the Government.

(47) Rights of the State Government:-

The State Government reserves the right to allot/deny the allotment,

amend or change any industry or classes of industries, project of special
importance in the industrial areas of the State.

46
 The State Government reserves the rights of complete decision regarding
those fact which are not clear in point number 01 to 46 of these land
allotment rule.

(48) Repeal :-

These rules shall be effective in supersession of the following rules:-

(i) Madhya Pradesh State Industrial Land and Building Management

Rules 2015 (as amended)

47
 Appendix A
Highly polluting and hazardous industries

1. Inorganic chemical industry :-

(i) Mineral acid, alkali manufacturing industry.
(ii) Mineral salts formed by acid reaction.
(iii) Manufacture of carbon dioxide, ultra marine blue chlorine, hydrogen,
ammonia gas and bleaching powder.
2. Organic chemical industry :-
(i) Manufacture of die and die stuff intermediates
(ii) Synthetic, plastic, such as polythene, P.V. Sea Resin, Nylon, Synthetic
Rubber, Synthetic Detergent.
(iii) Insecticide, fungicide and weedicide.
(iv) Products manufactured from bitumen distillation process.
(v) Organic solvents, chlorinated minerals methanol, aldehydes, pyridine,
iodoform, chloroform, beta naphthol and methylated spirits.
3. Petroleum products :-
(i) Crude oil refining, processing and cracking, petroleum jelly, petroleum
ether, naphtha cracking.
(ii) Carbon black and other manufactures.
(iii) Petroleum coke.
(iv) Lubricating and fuel oils.
(v) Illuminating eyes etc.
4. Metallurgical Industry -
Industries in which work like sintering, smelting, blast furnace, recasting
of ore sulphide, oxide or mixture is done.
5. Radioactive element manufacturing.
6. Paper, paper pulp, board manufacturing, news print manufacturing.
7. Alcohol Distilleries.
8. Sugar Factory.
9. Poisonous substances like - Cyanides, Arsenic compounds, Barium
compounds, Pyrogallic acid.
10. Electro thermal industries like- calcium carbide, phosphorus, aluminum
dust, paste, copper zinc alloy etc.
11. Thermal Power Projects.
12. Other types of industries declared by the Government from time to time.

48
 Appendix B

List of prohibited activities for allocation in industrial areas

1. Any activity related to bovine meat.

2 Animal slaughter (slaughter house).

3 Urban waste / deed animal and waste collection and storage.

Couch, polythene, plastic, P.V. Storage and grading of commodities like

steel, nylon, rubber, iron, wood.

5. Sand collection and grading.

6 brick kilns and lime kilns.

Open sand blasting.

8 Auto Mobile Stock Yard.

9 Processing and composting of urban and deed animal waste etc.

10 Explosive and fire works manufacturing and storage.

11 Charcoal manufacturing.

12 *Stone crusher, fly ash bricks, concrete mixture plant, hot mix plant

(* substituted by State Government order number F 06-01/2021/A-73

dated 21.10.2022)

13 Other activities announced by the government from time to time.

49
 Appendix - C
General terms of Sub-lease
Applicability and eligibility

1. Any unit may sub-lease the land/building in the leased land allotted to it
(only after allotment of minimum 10000 sqm). Only the land or the land
on which the machinery is installed on the building may be given on lease.

2. Such unit shall be treated as a vendor unit, which has executed an

agreement to provide minimum 75 percent of its total production of
production/services, to the parent unit/units.

3. Only those present holder may give land on sub-lease who has set up the
unit as per the approved project.

4. There should be a separate access road, or a separate access road may be

made available to it by the allottee. General Manager District Trade and
Industries Centre shall not be responsible for providing access road and
basic facilities on the land.

5. Such land which is required to be kept open in proportion to the built up

area as per the approved layout may not be given on sublease.

6. On the land on which sub-lease is being given, only prescribed industrial

activities approved in the land allotment rules may be done. If the original
lease land is not within the designated area for highly polluting and
hazardous industries, then the highly polluting and hazardous category
mentioned in “Appendix-A” of “Madhya Pradesh MSME Industrial Land
and Building Allotment and Management Rules, 2021” on the sub-lease
land industries may not be established.

7. The land allotted for industry ancillary purpose may not be given on
sublease.

Terms of sub-lease

1. The period of sub-lease at a time shall be minimum 1 year and maximum

10 years or till 1 year before the expiry of original lease period whichever is
earlier.

2. The renewal of the sub-lease period may be done with the consent of all
the three parties under prevailing rules at that time.

50
3. Each renewal may be done for a minimum period of 1 year and a
maximum of 10 years.

4. The fee mentioned in these rules shall be payable for renewal.

Procedure for grant of sub-lease

1. The original lease shall apply to General Manager District Trade and
Industries Centre along with consent of the sub-lessee, project report of the
sub-lessee along with application in the prescribed form as per prevailing
land management rules, details of land, building and machine etc. to be
given on sub-lease, size and area of the land. The determination eligibility
of land for the project of sub-lease to applicant shall be made under the
land allotment rules.
2. The General Manager, District Trade and Industries Center, on receipt of the
application, shall examined the case and inspect the site. Thereafter, the
inspection report along with its recommendation and opinion shall be
presented to the person who is competent to grant permission for granting
sub-lease permission under the Industrial Land and Building
Management Rules (MSME) 2021 / the prevailing rules at that time. This
action shall be completed within 15 days of receipt of the application,
according to the rules; permission shall be issued by the allotment
authority within 07 days of receipt of the case.
3. Upon obtaining the permission, the tripartite sub-lease agreement shall be
executed in the prescribed format between the present lessee, the sub-
lease recipient and the General Manager, District Trade and Industries
Center. The sub-lessee shall get this agreement registered and its attested
copy shall be kept in the land allotment file of the original lessee. This
agreement shall form a part of the original lease deed.
4. The sub-lessee, after the acquiring the land, shall be fully responsible for
the implementation of the sub-lease recipient unit within the prescribed
time period. If production is not started by the sub-lessee within the
stipulated time, then the sub-lease agreement may be canceled by the
executing officer.
5. If the lease records of the original lessee have been assigned to the bank /
financial institution, then the consent of the concerned bank / financial
institution shall be necessary before the sub-lease is granted. A copy of
the executed sub-lease agreement shall also be endorsed to the

51
 bank/financial institution. A copy of the sub-lease permission cancellation
shall also be sent to the concerned bank/financial institution.
Amount payable for sub-lease

1. The amount of 3 percent of the prevailing interest on the date of

permission on the area of land given on sub-lease, shall be deposited in the
office of the General Manager, District Trade and Industries Centre in
advance by March 31 every year as sub-lease fee. If the due amount is not
deposited, the agreement may be canceled after giving 30 days notice.

2. Deed rent/maintenance charges/water supply charges/street light

charges payable for the entire land during the sub-lease period or other
charges fixed by the General Manager, District Trade and Industries
Center shall be payable by the original lessee to the General Manager,
District Trade and Industries Center. If the sub-lease holder takes
separate connection/facility for water supply, electricity supply or other
facilities, he shall pay the prescribed fee directly to the service provider of
this facility.

3. On every renewal of the sub-lease, which shall be for a minimum period of

one year and a maximum of 10 years or up to one year before the expiry of
the original lease, whichever is earlier, 3 percent of the prevailing premium
shall be payable as renewal fee. Apart from this, 3 percent amount of
premium prevailing on the date of renewal shall be payable in advance
every year till March 31 as sub-lease fee.

Right to sublease

1. The rights of sub-lease approval, renewal and cancellation of lease shall

vest in the allotment authority as per the currently prevalent
"Madhya Pradesh MSME Ko Industrial Land and Building Allotment and
Management Rules, 2021" or the then prevalent land allotment rules.

2. After issuing the permission by the allotment authority, the follow-up

action and execution of agreement, monitoring of compliance of
conditions, issuing notices on violation of conditions, etc. shall be done by
the General Manager, District Trade and Industries Center.

52
Applicability of land allotment rules set by the state government

1. Other terms and conditions of the lease deed executed between the
original lessee and General Manager, District Trade and Industries Centre
shall also be applicable to the sub-lessee.

2. The provisions of "Madhya Pradesh MSME Industrial Land and Building

Allotment and Management Rules, 2021" or related rules issued from time
to time shall be applicable on the sub-lease holder.

3. The sub-lease holding unit shall not transfer the sub-lease plot and shall
not change its constitution/organization during the sub-lease period
without prior permission of the sub-leasee and consent of the original
lessee.

4. If the sub-lease is canceled or the sub-lease expires and is not renewed

during the sub-lease period, the possession of the land shall come to the
original lessee. The sub-lessee shall hand over the vacant plot of land to
the original lessee after dismantling the sub-lessee's
infrastructure/installed equipment and plants etc. built on the sub-
lessee's land. If both the parties wish, the structures may be purchased by
the original lessee after fixing the price of such structures with mutual
consent.

5. If during the operation of the unit by the sub-lessee, the lease of the
original lessee is canceled due to violation of any provisions of the Land
Management Rules, the sanctioning officer may give permission to sub-
lessee to run of operation of the activity. In such a situation, the rest of
the land (the land of possession of the original lease holder) shall be kept
canceled and further action shall be taken.

6. Any additional land situated near the area allotted to the sub-lessee shall
not be regularized in favor of the sub-lessee.

7. The land shall not be divided during the entire period of sub-lease. The
legal heir may be included as heir in the sub-lease agreement executed
after the decision of the competent court.

8. The sub-lessee may surrender the land during the sub-lease period. No
amount shall be returned to the sub-lessee on surrender of the land given
on sub-lease.

53
9. The details of the progress and income-expenditure of the unit operated by
the sub-lease holder shall be presented to the General Manager, District
Trade and Industries Centre by 30th September every year.

Appeal, Dispute Resolution and Guidance

1. The sanctioning officer may review any case related to sub-lease on its
own motion and may pass such orders as it deems appropriate.

2. Order of cancelation of sub-lease or other order issued by the sanctioning

officer may be challenged under these rules and the concerned party may
appeal to the competent authority within 30 days of passing of such order
as per the provisions of the Land Management Rules. The decision of the
appellate authority shall be final and binding on the concerned.

3. If any dispute related lease arises between the original lessee and the sub-
lessee, the sanctioning officer may give a decision to the parties
concerned, which shall be binding on both the parties.

4. the sanctioning officer may issue as per requirement, appropriate

instructions and guidance relating to sub-lease under these rules, which
shall be binding on both the parties.

54
 Appendix-D

(Amended by the State Government Order No. F 06-01/2021/A-73 dated

21.10.2022)

Rules for allotment of undeveloped land to a group of units for cluster

development:-

Madhya Pradesh MSME Development Policy, 2019 includes the provision

for construction and maintenance of better infrastructure facilities through
private developers. Therefore, the state government has decided to allot
undeveloped land to the private sector for infrastructure development on
industrial undeveloped land owned by the department, accordingly the rules
for allotting undeveloped land to a group of units for cluster development shall
be as follows:-

(1) Objective:-

(i) To provide land to micro, small and medium enterprise units at

reasonable rates.

(ii) Increase in employment and tax.

(2) Definitions -

Unless the context otherwise requires, the following definitions shall have
meaning in these rules:-

(1) “State Government means” Micro, Small and Medium Enterprises

Department of the State of Madhya Pradesh.

(2) “Micro, Small and Medium and Large Industrial Unit” means the
industrial unit or manufacturing enterprise as defined from time to
time by the "Government of India and the State Government".

(3) “Industrial Undeveloped Land” means, the land owned by the

Department of Micro, Small and Medium Enterprises, for which no
amount has been spent by the Government or has not been notified
as an industrial area.

(4) “Plot” means the part of the land which has clearly defined boundaries
and area according to the layout approved by the competent
authority,.

55
(5) “Industrial area” means the industrial area notified by the
Government.

(6) 6.1 “Industrial use means” use of land/building for manufacturing

sector, which fulfills the requirements of manufacturing sector.

6.2 “Commercial purpose” means the commercial purpose as defined

under the Town and Country Planning Act, 1973.

6.3 “Residential purpose” means the residential purpose as defined

under the Town and Country Planning Act, 1973.

(7) “Industry Ancillary Purpose” means, ancillary/necessary activities for

industries.

(8) “Allotment Authority” means the authorized authority for allotment of

land/building for the purpose prescribed in the rules.

(9) “Allottee” means the allottee of industrial undeveloped land.

(10) “Lessor – means authority authorized for executing the lease deed on
behalf of the Governor of the State of Madhya Pradesh, who has
executed the lease deed with the allottee of the undeveloped land
allotted to the allottee.

(11) “Lessee” means the allottee of the undeveloped land, who has
executed the lease deed with the lessor."

(12) “Competent Authority” means the officer authorized to perform the

work mentioned in these rules and the officer authorized to perform
various responsibilities under the rules/acts of other departments
mentioned in these rules.

(13) “Premium (Premium)” means the amount to be received from the unit
with reference to the land value at the time of allotment of land, as
determined by the competent authority from time to time.

(14) “Deed rent (lease rent)” means the amount to be taken from the
allottee every year as determined by the competent authority from
time to time.

(15) “Transfer fee” means the amount to be taken from the new allottee at
the time of transfer of the plot.

56
 (16) “SPV” means a company formed under Section 8 of the Indian
Companies Act - 2013, a partnership firm registered under the LLP
Act 2008, a partnership firm registered under the Indian Partnership
Act 1932 or a Cooperative Societies registered under the Madhya
Pradesh Cooperative Societies Act 1960

(17) “Cluster” means such industrial area in which minimum 80 percent

of the area reserved for industrial units is reserved for micro, small
and medium enterprise units.

(18) “Investor” means the person by whom the industrial unit shall be set
up on the plot of land.

(19) “Developer” means the SPV which is willing to develop the

undeveloped land by acquiring it from the department.

(20) “Unallotted land” means such land which is not to be allotted to

anyone as per the approved layout but the road and drain of the
cluster shall not be included in such land.

(21) “State Level Empowered Committee” means the State Level

Empowered Committee mentioned in the Madhya Pradesh MSME
Development Policy 2021 / the then prevalent MSME Development
Policy.

(3) Lands eligible for allotment/sanction –

(i) Land for industrial land use purpose in the investment plan area and
undeveloped land owned by the department outside the investment
plan area.
(ii) The minimum area of the land should be 5 acres.
(4) Eligibility for allotment of industrial land –
Micro, small and medium enterprises and large units in the
manufacturing sector.
(5) Premium and deed rent for allotment of land-
(i) The developer shall have to deposit 10 percent of the prescribed
collector guideline for unirrigated agricultural land as security
deposit along with the application form for the allocable land. This
amount shall be proportionately adjusted from the premium at the

57
 time of allotment of land to the investors. If the permission of the
developer is canceled then the security deposit shall be forfeited.
(ii) The premium of the industrial land to be allotted to the investor shall
be 25 percent of the collector's guideline prescribed for unirrigated
agricultural land for the concerned land and the deed rent premium
shall be 2 percent per annum, which shall be paid by the allottee unit
to the government as per the rules.

(iii) The premium of the land for commercial and warehousing purpose
shall be equal to the rate fixed for commercial purposes as per the
collector's guide line and 2 percent of the premium shall be per
annum.

(iv) The premium of the land for residential purpose shall be equal to the
value fixed at the rate of residential purpose and 2 percent per
annum of the premium of the land as per the collector's guide line.

(v) The deed rent to be allotted through auction shall be 2 percent per
annum of the original premium of that land.

(6) The process of application and disposal for land allotment –

(i) The General Manager, District Trade and Industries Centre shall mark
such undeveloped land on which permission is to be given for cluster
development. If the marked land is not allotted to the department,
then the allotment of the land shall be done in the name of the
department.

(ii) The General Manager, District Trade and Industries Centre

shall invited online applications from interested developers for the
development of the identified land. At least 15 days prior to the date of
receipt of applications, information shall be published in minimum 2
newspapers and on departmental website and applications shall be
received for minimum 21 days.

(iii) Application for development of undeveloped land may be made by

SPV only.

(iv) The application shall be submitted online on the prescribed form

along with the application fee of Rs. 10,000/-.

58
(v) Application with details of land, proposed layout, estimated cost
(access road, internal CC road, CC drain, water system, electrical
system, drainage system, STP Estimate of E.T.P. etc., as per prevailing
SOR of MP Public Works Department), proposed employment,
proposed investment, number of units to be established, previous
work experience and financial status of SPV members And
information about financial arrangements for cluster development
shall be attached.
(vi) A committee shall examine the proposals received in the District Trade
and Industries Center. Representatives of Revenue Department and
Construction Department nominated by Collector and General
Manager District Trade and Industries Centre shall be members in the
committee. Examining of the proposed layout, estimated cost,
proposed employment, proposed investment, number of units to be
established, financial condition and cluster development shall be
done in the light of financial arrangements. The previous work
experience of the members of SPV shall not affect the selection
process. After examining the proposals received by the General
Manager, District Trade and Industries Centre shall be sent to the
Industries Commissioner with opinion.
(vii) The Industries Commissioner shall be forwarded the cases to the
government. The government shall present the cases before the state
level empowered committee for final decision. If more than one
application is received for any land, the applicant who charges the
least amount mentioned in clause 7(3) shall be given priority for the
development of the land. If the same rate of the amount mentioned in
clause 7(3) is received by the applicants, then the applicant shall be
selected through lottery.
(viii) Development permission shall be issued by the Industries
Commissioner after the decision of the State Level Empowered
Committee. If the area of the land is more than 20 acres, then
according to the demand of the developer, the permission for
development may be given simultaneously or for phase-wise
development. This permission shall be for 2 years. The Principal
Secretary/Secretary, Micro, Small and Medium Enterprises
Department may be increased one year time limit in special
circumstances. If the development works are not completed within 3
years, the permission may be canceled by the Commissioner of

59
 Industries after giving an opportunity of hearing to the developer. On
cancellation of the permission, the work done on the land and all the
assets established shall be vested in the government.
(ix) According to the demand of SPV, the land for commercial and
warehousing purpose may be allotted to the members of SPV at the
rate of commercial purpose and land for residential purpose may be
allotted as per the collector guide line. Such land which is not
demanded by the SPV or there is a dispute between the members of
the SPV regarding the land shall be e-auctioned by the department.
50 percent of the amount received in the auction shall be given to the
developer, the remaining 50 percent amount shall be received by the
department.

(x) with the consent of the developer, the land or the Common
Facilitation Center may be allotted to the SPV For the establishment
of Common Facilitation Center in the cluster, at premium of Rs. 1, for
which the deed rent shall not be payable.

(xi) It shall be mandatory to have minimum 5 members and investors in

SPV.

(xii) The land shall be allotted on lease as said above and in any case the
ownership of the land shall remain with the government.

(7) Development and maintenance of the industrial area :-

1. The developer shall have to complete the project-wise development

work in 2 years, whose annual report shall be submitted to the
General Manager, District Trade and Industries Center. The
development work shall be done by the developer or the developer
may get the development work done from any other organization, for
which an agreement shall be executed between the developer and the
organization and the information shall be given to the General
Manager, District Trade and Industries Center.

2. No amount shall be spent by the government for the maintenance

work of the area. The developer shall have to do the maintenance
work for two years after the completion of the development work of
the industrial area, thereafter, the responsibility of the maintenance
work of the area shall be on the developer or units or their
organization.

60
 3. The developer may obtain the amount payable for the establishment
of a private industrial area / multi-storey industrial complex as per
the provisions of Clause 11 of the MP MSME Promotion Scheme 2021
/ scheme implemented at that time. The amount of assistance to be
taken from the government shall have to be mentioned in the
financial proposal along with the application. If more than one
application is received for the same land, the applicant demanding
the minimum amount from the government shall be allowed. If equal
amount is demanded by two or more developers for a land, then the
developer shall be selected through lottery.

4. Even if the developer receives any assistance from the Government of

India, he may receive the assistance mentioned in clause 3.

(8) Allotment of land and execution of lease deed: -

(i) Allotment of land and execution of lease deed shall be done as

follows:-

the developer, after completion of the infrastructure development

work as per permission, will execute the lease deed of the plot with
the concerned investor unit / allottee as per the layout approved by
the General Manager, District Trade and Center with the consent of
the developer.

(ii) Only premium and deed rent shall be paid to the government for the
land allotted by the investor unit/allottee. Development fee and
maintenance fee shall not be taken from the unit by the government.
(iii) The investor unit / allottee shall have to start production within the
time limit mentioned in rule 15 of Madhya Pradesh MSME Industrial
Land and Building Management Rules-2021. The time limit for this
purpose shall be calculated from the date of signing of the lease.
(iv) The investment unit located in the cluster may get the incentive
amount according to the MP MSME Promotion Scheme 2021 / the
scheme or the time being in force.
(9) Other provisions :-
On the allottee of the cluster, other rules like implementation of the
project, full utilization of the allotted land, assignment of leasehold in
favor of bank/financial institutions, transfer and transfer procedure,

61
 division of plot, renewal of lease, cancellation of lease, appeal, On
cancellation of lease deed, getting possession of land, building/shed, etc.
shall be as per the provisions of the Madhya Pradesh Allotment of
Industrial Land and Building to MSMEs and Management Rules, 2021”.

(10) Explanation and interpretation rights: -

In case of ambiguity, dispute arising in the rules, the Micro, Small and
Medium Enterprises Department shall be authorized for interpretation
and its decision shall be final and binding.

62
 Appendix-E

Lease deed for Land Allotted in

Industrial Area ............. District ........... (M.P.)

COMMON FOR INDUSTRIAL/ WAREHOUSING/RESIDENTIAL/ LOGISTIC AND WAREHOUSING HUB/ PARK

This deed is made on ………… day of ............. year ------------- between the Governor of Madhya Pradesh,
acting through General Manager District trade and Industries Centre (herein after called the 'Lessor
'which expression shall, where the context so admits, include it’s successor in office) of the one part
& M/s …………… (address) ……………., District …….. (M.P.) acting through …………… and having its
registered office at ……………, District ………, (M.P.) (herein after called the 'Lessee' which expression
shall, where the context so admits, include its successors and permitted assigns) of the other part.

Whereas upon the request of lessee, the lessor has agreed to grant to the lessee, subject to the
terms and conditions herein after specified, a lease of the piece of land in the industrial Area/Growth
......... Centre at ............. comprising of an area measuring ……… Square Metres situated in the
village/city ................. of Tehsil ---------- of the District ------- (M.P.) more particularly described in the
schedule hereto annexed and for greater clarity delineated on the plan hereto annexed and thereon
shown with boundaries in red colour (hereinafter referred to as 'the said land') for a term of NINETY
NINE YEARS commencing from the date……………. and ending on ……………. for the purpose of
INDUSTRIAL/WAREHOUSING/RESIDENTIAL/LOGISTIC AND WAREHOUSING Activity the (details of the
activity) (herein after referred to as the said activity/business).

And whereas the lessee has agreed to take the lease on the said terms and conditions.

Now, therefore, this deed witnesses and it is hereby agreed and declared as follows:-
1. It is agreed upon that the referred land is allotted to the Lessee for the operations of business
referred herein, under the provisions of the Madhya Pradesh MSME
ko Audyogik Bhumi tatha Bhawan Prabandhan Niyam 2021 issued by the Government of Madhya
Pradesh vide Micro, small and medium enterprises Department's order No.----------------, as
amended from time to time (herein after called as "Rules").

63
2. That all the provisions of and terms & conditions as referred to in the said Rules shall always be
applicable and binding on the Lessee.
3. (i) In consideration of the premium, lease rent, development charges and maintenance charges
herein reserved and the covenants on the part of the lessee herein contained, the lessor shall
demise to the lessee and the lessee shall accept a lease of the said land/building to hold the
same for the Non Polluting Industrial Activity of INDUSTRIAL/WAREHOUSING/RESIDENTIAL/
LOGISTIC AND WAREHOUSING for a period of NINETY NINE YEARS commencing on the date of
agreement on which the possession of said land/premises is handed over to the lessee.
(ii) The Lessee shall use the aforesaid demised land/premises, exclusively for the Industrial Activity
mentioned hereinabove and the Lessee shall not be entitled to use the land/demised premises
for any other purposes whatsoever.
(iii) Without prejudice to the aforesaid Clause 3(ii) mentioned hereinabove, it is hereby made clear
that the Lessee shall not be entitled to carry on any such Industrial Activity from the demised
premises, which has been regulated by any General or Special Law if force or regarding which
any license/permission sanction is required under any General or Special Law in force, without
first following the concerned regulations and/or without prior obtaining the
license/permission/sanction, as may be required under the relevant concerned Law.

4. The Lessee having paid the following amount to the Lessor for the said land :-

i Premium of Rs. ………/- (Rs………..) only.

ii Advance Annual Lease rent Rs. …………/-

(Rs …………) only.

iii Development charges Rs ………/-

(Rs. ……………….) only.

iv. Advance one year annual maintenance Charges Rs. ………./-

( @-------Per Sq. mtr) (Rs. …….) only.

v. Three years annual lease rent as Security Deposit Rs. ………./-

(Rs. ------------------------------) only.

64
5. Thereafter, during the term of the lease the lessee shall with respect to the demised Industrial /
Logistic / Warehousing/ Plot/Land, pay to the lessor, the annual Lease Rent @ Rs. ………/- (Rs.
………..) only. p.a. and annual maintenance charges @ Rs. …………/- (Rs. …………….) only
and/or such other sum or at such other rates, as may be determined in accordance with the said
Rules, in the month of April each year in the office of the General Manager District Trade and
Industries Centre through online portal or such place or places as the lessor may direct from
time to time. In case of any delay in payment of the due Lease Rent and/or Maintenance Charges
by the Lessee, simple interest @10% shall also be payable by the Lessee on the aforesaid due
amount/s, from the date when they become due till the actual payment by the Lessee.

6. The lessee hereby agrees to pay the maintenance charges at the rates as may be fixed/revised
from time to time by the lessor/concerned Authority.

7. The lessee shall from time to time and at all times during the term of the lease pay except as
aforesaid, all taxes, rates, assessments and other charges, which are or may, at any time
hereafter during the said term be assessed, charged or imposed upon the said land/premises,
whether on the lessor or on the lessee.

8. All sums, such as due amount of premium, lease rent, development charges and maintenance
charges or any other charges imposed by the lessor, may be recovered as arrears of land
revenue, if the same are not paid before the respective due date or there after along with
interest @10% per annum as mentioned hereinabove.

9. The lessee hereby agrees that he shall implement the project for the said Industrial Activity and
start the production/ commence the operation within the stipulated period, as prescribed in the
said Rules, failing which, action for cancellation of allotment for land/shed and termination of
Lease Deed shall be undertaken.

10. The lessee further agrees that he shall utilize the land as per norms and within the prescribed
period from the date of execution of lease deed or the date of taking over of the possession of
land, failing which, action would be initiated for cancellation of allotment and termination of
Lease Deed.

65
11. On the expiry of the lease period, the lessee shall pay 2% of the then prevailing premium
amount in case of developed land and in case of undeveloped land, lessee shall pay 1% of the,
market value of the land, assessed on the basis of the then prevailing un irrigated agriculture
land, as per the Collector Market Value Guide Line, for the concerned area for the renewal of
the lease. Further, at the time of renewal of lease, the lease rent will be increased by ten times
of the existing lease rent or prevailing lease rent whichever is less.

12. The lessee shall be entitled to surrender the land and obtain refund of premium strictly as per
the provisions of the Rules. In case, building/other assets have been constructed on the said
land, the lessee shall have the right to remove & sale the assets at his/their own cost. In the
event of sale of such assets, the purchaser shall have to execute a fresh lease deed after the
payment of full premium and other charges/dues as per the Rules.

13. The lessee shall not undertake any construction activity without obtaining necessary approval of
maps, building permissions & plans, as also all other permissions/sanctions/approvals/
objections, required for the construction/project from the respective concerned competent
authority.

14. The Lessee shall use the said premises, land and building structures and works erected or
constructed thereon only for the purpose of the business stated herein above.

15. The lessee shall keep the said premises, land and building erected thereon secure and in good
condition through maintenance and upkeep at his own cost. The lessee shall also develop his
own parking arrangements on the land/building allotted and shall not park the vehicles on the
road. Any activity of the lessee which may cause or is causing inconvenience to nearby allottee
in proper functioning of their activities can be ground to cancel of the lease deed of lessee.

16. The development and maintenance works in the Industrial Area will be done by the lessor
according to its plan which will be completed as early as possible, depending on availability of
funds. In case of land allotted for cluster development developer will be responsible for
development for demised land.

17 A) For Industrial land

66
 The Lessee shall not acquire any title, proprietary right or claim in the demised land/premises,
through this deed and nothing contained in this Lease Deed shall mean or create any title,
proprietary right or claim whatsoever, in the demised land/premises, in favour of the Lessee.
The lessee shall not sublet, assign or otherwise transfer the said premises/land or any part
thereof or any building constructed thereon for any purpose whatsoever, except as provided in
the said Rules.

B) For warehouse / logistic park hub/Residential land

The Lessee shall not acquire any title, proprietary right or claim in the demised land/premises,
through this deed and nothing contained in this Lease Deed shall mean or create any title,
proprietary right or claim whatsoever, in the demised land/premises, in favor of the Lessee. The
lessee may sublet built up space created there upon but shall not transfer the said
premises/land or any part thereof or any building constructed thereon for any purpose
whatsoever, except as provided in the said Rules/Order.

18. On the basis of change in the constitution of ownership of the unit, the Lessee may with paying
the required fee/charges, affect the necessary changes as per the provisions of the said Rules.

19. The lessee shall not carry on any illegal trade or business on the said land/premises.

20. For closure/transfer of the business, Lessee shall inform the Lessor at the earliest. In the case of
NCLT or declared sick units or court cases, allotting authority will take decision as per the
directions.

21. Without prejudice to the right of the Lessor to recover form the Lessee, any amount due or
unpaid, with or without interest as the case and without prejudice to the right of the Lessor to
avail any other simultaneous remedy against the Lessee, in terms of this Deed and in accordance
with the Rules, this Lease Deed and the consequent lease of the demised land/premises to the
Lessee, shall be deemed to have been terminated, on the happening/occurrence of any or more
of the following events ;

(a) If the lease rent hereby reserved or revised time to time or any part thereof, or any other
charges or dues payable by the Lessee, shall at any time be in arrears and remain unpaid for a
period of one year or more, next after the date when the same shall have become due, whether
the same shall have been lawfully demanded by the Lessor or not or whether a demand notice in

67
 this respect has been issued by the Lessor or not and an order communicating the termination of
lease has been issued against the Lessee;

(b) The Lessee becomes insolvent and/or being a firm/company goes into liquidation, voluntarily or
otherwise; or enters into an arrangement/agreement with his/its creditors for composition of
the industry, or in case of Lessee being a Partnership Firm, the Lessee Firm is dissolved for
reasons whatsoever;

(c) The demised premises/land is attached by any authority for any reason whatsoever;

(d) There is a breach, non-observance or non-compliance, regarding any of the terms and conditions
contained herein in this Deed or a breach of any of the provisions of the Rules or any applicable
law in force, by the Lessee and the Lessee fails to rectify or remedy the said breach, within a
period of thirty days of the notice in writing issued against the Lessee in this respect by the
Lessor.

(e) If lessee creates any nuisance to nearby industry and does not remove even after order of the
lessor.

(ii) If the lease is terminated as aforesaid, then the Lessor may, not withstanding the waiver of any
previous dues and without prejudice to any other right or remedy available to the Lessor
including the right to recover the dues of whatsoever nature, take recourse to right of re-entry
upon the said demised land/premises and re-enter and take back its possession, as if this demise
had not been made.

22. On the expiry of the lease period or termination of the lease due to breach of the conditions of
the lease deed or the Rules, the lessor shall have the right of re-entry over the land/premises.

23. On termination of lease the lessee shall immediately surrender the possession of land. Lessor
may give him reasonable opportunity not exceeding 6 weeks to remove super structure on plot.
However lessor can allot during this process to new lessee, but possession of land to new lessee
would be given only after expiry of reasonable period given by in this rule(23) .

24. Lessee may surrender the leased area in part or whole, by serving upon the lessor, three
calendar months' prior notice in writing of his intention to do so. The lessor shall have the right
of re-entry over the surrendered land/premises. On such re-entry , the lessor may refund to the

68
 lessee part of the premium paid by the lessee at the time the land was allotted/leased out to the
lessee in the following manner:-

(i) 90%, if surrender of allotted/leased land occurs within two years from the date of taking over its
possession in case of Micro/Small Scale Industrial Unit and three years from the date of taking
over its possession in case of Large/ Medium Industrial units and warehousing and logistic
projects.

(ii) 80%, if surrender of allotted/leased out land occurs after two years but within three years from
the date of taking over its possession, in case of Micro/Small Scale Industrial Unit and after three
years, but within four years from the date of taking over its possession in case of Large/ Medium
Industrial units and warehousing and logistic projects.

(iii) 70%, if the surrender of the allotted/leased out land occurs after three years but within four
years from the date of taking over its possession in case of Micro/Small Scale Industrial Unit and
after four years but within five years from the date of taking over its possession in case of Large/
Medium Industrial unit and warehousing and logistic projects.

(iv) 50%, if the surrender of the allotted/leased out land occurs after four years but within six years
from the date of taking over its possession in case of Micro/Small Scale Industrial Unit and after
five years but within seven years from the date of taking over its possession in case of
Large/Medium Industrial unit and warehousing and logistic projects.

Explanation:- Where possession of land has not been taken over by the Lessee, the time period
available to the Lessee for the surrender of land/premises, as mentioned above shall be calculated
from the date of execution of the lease deed, for the purpose of calculation of refund of premium.

25. All costs and expenses incurred or which may be incurred for preparation, execution and
registration of this lease shall be borne and paid by the lessee.

26. The lessee shall, after execution and registration of the lease deed, deposit a copy of lease
deed, duly certified by the registering authority, with the lessor and may retain original copy
with him.

27. The Lessee shall be entitled to avail finance/loan facility from any scheduled bank/financial
institution in accordance with the provisions of the Rules and for the said purpose shall be
entitled to assign the said land in favour of such Bank/Financial Institute, only to the extent

69
 his/its Lease Hold Rights in the said land, as referred to in the Rules. It is hereby made clear that
such assignment of the Lease Hold Rights shall not mean or include, the assignment of the
demised land and/or the assignment of any buildings/shed/structures which may be existing on
the demised land, prior to the execution of the lease deed in favour of the Lessee, whether
constructed by the Lessor or not and any finance arrangement/loan facility availed by the Lessee
from any bank/financial institution, shall always be subject to this Lease Deed and all the terms
and conditions contained herein as also subject to all the provisions of the Rules. In all
circumstances, the charge of the Govt. of MP, Department of Micro, Small and medium
enterprises on land/shed shall be over and above any subsequent charges to be created.

28. Consequent to the infringement / breach of any of clauses of the lease deed or the Rules, by
lessee, the allotting authority will serve a notice by electronic means of e-mail address provided
in the application form to the lessee for the compliance of concerned clause/s of lease
deed/provisions of the Rules (i.e. rectification of breach) within 30 days and in case of non
compliance of this notice, the lease deed shall be deemed to have been terminated.

29. The lessee, if aggrieved by any order passed by the Allotting Authority, may prefer an appeal to
the designated authority with appropriate fee within a period of 30 days as per the provisions of
the said Rules.

30. The allotting authority to which the powers of allotment have been delegated will also be
competent to terminate the lease deed on behalf of the lessor.

31. This lease deed will be subject to the provision contained in the Madhya Pradesh MSME
ko Audyogik Bhumi tatha Bhawan Prabandhan Niyam, 2021 and Micro, small and medium

enterprises Department's order No. F 6-1/2021/अ- तेहत्‍तर dated 08.06.2021 and as amended

from time to time. For amendments subsequent to the execution of this lease deed the lessee
shall be bound to amend the lease deed incorporation such amendment on his own cost.

32. The lessee shall comply with all Acts, Rules and Regulations of State Government/Central
Government/Local Bodies/any other competent authority, in force from time to time for the
operation of industrial activity/business from the demised premises.

70
33. The lessor shall not be liable to compensate any loss on account of any accident occurred or
damage caused to any other persons/labour/workmen/third party etc. due to the operations
being carried out by the lessee in the allotted premises.

34. The lessee, being a proprietorship entity intending to avail the option available in the said rules,
hereby nominates Shri/Smt./Ku---------------- S/o / D/o…………. resident of …………as its sole
successor of the said business. In the event of death of the lessee, such nominated person shall
be accepted by the lessor, as lessee automatically for the remaining period of lease.

35. The partners in the lessee unit intending to avail the option available in the said rules, hereby
nominate the following persons, their sole successors respectively, in the said partnership entity
owing the said business :-

Name of the partner Nominee Father's name Resident of

In the event of death of a partner, respective nominated person shall be accepted by the lessor, as
partner on his behalf in the lessee partnership entity for the remaining period of lease, automatically.
However, if any of the original partners has ceased to be a partner in the lessee partnership entity at
any point of time, such nomination exercised by him shall become null and void automatically.

36. The Lessee shall not restrict the entry of the Lessor or any person authorized by the Lessor, in
the demised premises and shall provide all information sought, in writing by the Lessor or its
authorized person.

37. That the 'Lessee' shall indemnify and hold harmless, the 'Lessor' against any claims damages or
any legal actions whatsoever, initiated against the 'Lessor' and arising out of and by virtue of any
act, misdeed, offence, unlawful or illegal activity on the part of the 'Lessee' or non payment of
any dues, duties, taxes or cess etc. payable by the 'Lessee', or any other cause attributable to
the Lessee.

38. That any notice to be served upon the 'Lessee', under and by virtue of the provisions of
the agreement, shall be deemed to have been properly served, if addressed to the 'Lessee'

71
 and if delivered at its address herein above mentioned, unless the 'Lessee' has given
proper notice to the Lessor, regarding the change of such address.

39. That notwithstanding any other agreement, deed or exchange of letters or discussions, hitherto
exchanged between the parties, in the matter of the lease of the aforesaid Land/Premises, the
terms of this lease agreement & the provisions of the said Rules alone, shall prevail and bind the
parties. No term of this lease agreement shall be modified or altered, except by a document in
writing, executed by both the parties. All the documents and annexures, annexed with this
deed, shall always remain a part and parcel of this deed and shall be read as a whole.

40. The Lessee hereby expressly and specifically agrees and consents that only the competent
Courts of Law, within the territorial jurisdiction of which, the demised land/premises/building is
situated shall have the exclusive jurisdiction to hear, decide and adjudicate upon any dispute,
matter or issue, with respect to this Deed or any of the terms or conditions contained herein or
with respect to the applicability, interpretation, performance or non performance of any the
provisions of this Deed or the Rules, arising between the Parties to this Deed and it is further
expressly agreed that the jurisdiction of all other Courts shall be specifically barred. In case any
Appeal/Revision/Writ Petition needs to be preferred, then the Hon’ble High Court of M.P. at
Jabalpur or its concerned Benches at Indore & Gwalior, within the jurisdiction of which the
demised land/premises/building is situated, shall only have the jurisdiction to hear, decide and
adjudicate upon the same.

72
 SCHEDULE

Name of Village : ..................

Name of Tehsil : ......................
Name of District : ....................
Name of Industrial Area/Estate : ...................... District ......................(M.P.)

Plot No- ……
Total area: ……. Sq. Mtrs

Bounded By :-
On The East :
On The West :
On The North :
On The South :

WITNESS WHERE OF, the parties hereto have put their ink, seal and signatures on these presents on
this……… Day of ………… Year….., at ……………….., out of their own free will and consent and without any
fear, coercion and pressure.

Witnesses :
1. ………………………... Signed For & On Behalf Of
……………………………. The ‘Lessor’ Through Its
……………………………. (Authorized Signatory)

2. ……………………….. Signed For & On Behalf Of

……………………………. The ‘Lessee’ Through Its
……………………………. (Authorized Signatory)

73
 Annexure F

Minutes of the 191st meeting of the Board of Directors of MP

Industrial Development Corporation Limited

Bhopal dated 11.01.2019

191st Meeting of the Board of Directors of Madhya Pradesh

Industrial Development Corporation Limited, Bhopal was held on
11.01.2019 from 11:00 am to 12:30 pm at office of Non-resident
Indian (NRI) B-Wing, III flour, Vallabh Bhawan-2 Mantralaya
Bhopal which was presided by Mr. Mohommad Suleman, the
Principal Secretary, Industrial Policy and Investment Promotion
Department .

The following persons were present in the meeting:-

1. Mr. Mohammad Suleman, Principal Chairman

Secretary, Govt. of MP, Industrial Policy
and Investment Promotion Department
2. Mr. Pankaj Aggarwal, Principal Secretary, - Director
Govt. of MP, M.S.M.E. Department and
Commissioner Industry Directorate
3. Mr. Manoj Govil, Principal Secretary, Representative of
Govt. of MP, Finance Department Finance Dept
4. Mr. Manu Srivastava, Principal Secretary,
Representative of
Govt. of MP, Commercial Tax Commercial Tax
Department, Department
5. Mr. Vivek Porwal, Managing Director, Managing
MP TPC Ltd. Director,
6 Mr. Rajeev Sharma, Secretary, Govt. of Representative
MP, Urban Development and Housing Government of
Department, M.P. Urban
Development and
Housing Dept
7. Mr. S. K. Gaikwad, Executive Engineer, Representative of
Energy Department, M.P. Government Energy Dept

74
Other officers who were present in the meeting-

1. Ms. Shazia Afzal Company Secretary, MP IDC Ltd.

2. Mr. J. N. Vyas Executive Director MP IDC Ltd.

Agenda Number-01

Confirmation of minutes of the 190th meeting of the Board of

Directors dated 01.11.2018

"The minutes of the 190th meeting dated 01.11.2018 were

confirmed by the Board of Directors."

Agenda number 02

Action taken as per the minutes of the 190th meeting of the Board
of Directors dated 01.11.2018.

"The Board of Directors was perused about the action taken as per
the minutes of the 190th meeting dated 01.11.2018."

Agenda Number-03

M.P. Cognizance of new name of the corporation after the merger of

M.P. TRIFAC and its ancillary companies.

The Board of Directors passed a resolution as under:-

"The Board of Directors, after knowing the entire factual situation,

takes cognizance of the new name of the Corporation i.e. "MP
Industrial Development Corporation Limited and hereby authorizes
the Managing Director to take further necessary action."

Agenda number 04

75
M.P. Approval of the method of marking and writing the name after
the merger of M.P. TRIFAC and its ancillary companies as new name
MP Industrial Development Corporation Limited and method to
write new name.

The Board of Directors passed the following resolution -

The Board of Directors, after perusing entire factual situation,
subsequently approves the logo Corporation, of new name MP
Industrial Development Corporation Limited and also approves the
method of writing the name, MP Industrial Development
Corporation Limited in the English and hereby authorizes the
Managing Director to take further necessary action."
Agenda number 05
In the reference of year 2017 for the cognizance of the Board of
Directors, the factual status of completion of the recruitment
process for the post of Assistant Engineer (Civil and Electrical),
Junior Engineer (Civil and Electrical) and Assistant Grade 01 and
Grade 02.
The Board of Directors passed the following resolution -
"The Board of Directors are apprised of all the facts regarding the
recruitment of 8 posts of Assistant Engineer (Civil and Electrical),
13 posts of Junior Engineer (Civil and Electrical) and 16 posts each
of Assistant Grade-01 and Grade-02 and managing director is
hereby authorized for further necessary action.
Agenda No. 06
Regarding appointment of internal auditor.
The Board of Directors, after discussion has passed the following
resolution:-
"The Board of Directors approves the appointment of M/S
A.K. Surana & Associates, Chartered Accountants, Bhopal as

76
Internal Accountant on Rs 4.20 lakh remuneration per annum for
the financial year 2018-19."

Agenda Number-17

Proposal regarding extension of time for planning of Invest Portal

and condonation of delay.

The Board of Directors passed the following resolution -

"According to the proposal mentioned in paragraph 3 and 4 of the

precie submitted by the Board of Directors, the delay caused by
Ernst & Young the agency appointed to design and develop INVEST
Portal by MPIDC formerly known as MP TRIFAC in the designing only
02 modules namely- "MSME and Incentive". Is condoned and
proposal of regarding extension of period up to 17.01.2019 to
design as approved, but the total time period for the project will
remain unchanged at 36 months."

Agenda Number-18
Regarding distribution of relief amount in VAT/CST cases to units
under industrial policy.
“The Board of Directors stays Agenda No. 18."
Agenda Number-19
Approval of calculation of fixation o development fee in industrial
areas
The Board of Directors passed the following resolution -
"During the discussion by the Board of Directors expressed the
opinion that the model of the development fee of the company's land
should be such manner that in any case even if 10-10 percent of
the land is allotted every year in 10 years, the company should not
suffer the loss. Thus, the projects which has availed the loan from the
institutions in the financial projects, such as Smart Industrial Park

77
(TRIP), Jaitapur, Palasia, Babupur Jhanjharwada, Badiyakhedi,
Mohasa-Babai and Umaria Durgaria, were remodeled, in which the
corporation dose not suffer any loss in any case, while setting the
rate of development fee and repayment of loan is made regularly.
And return is also received on the remaining equity of the
Corporation. Therefore, Board of Director Approves model of re-
calculation as Appendix-A (attached) and authorizes Managing
Director, MP IDC Ltd. for further action.

Additional agenda submitted with the permission of the Chairman

Additional Agenda No. 01

AADHAAR based e signing for MPIDC

The Board passed the following resolution: "RESOLVED THAT the

Managing Director, MP Industrial Development Corporation
Limited, is hereby authorized to get e-sign services and to sign
documents related with e-sign services from NSDL on behalf of
MPIDC Ltd, for the purpose as placed before the Board."

Date 01.02.2019
Place Bhopal
Mohammad Suleman
President

78
 MODEL FOR DEVELOPMENT CHARGE CALCULATION

Objective: To recover all the cost incurred on development of an industrial park

while remaining to be profitable.

Model: The model aims to calculate development charges that should be charged
to industrial units during forthcoming financial year. The development rates will
be calculated on 31" March of each year and will be applicable for land
purchased in the financial year starting next day i.e. 1st April.

Methodology:

1) Project Cost: Project Cost is calculated as

Project Cost Expenditure on development (Actual basis)+ DPR & SQC + Electric
Supervision Charges Pre-operative & Contingency 13% of (Expenditure on
development + DPR&SQC))+ GST+ Any other charges incurred on the project

2) Financial Pattern of the project is 50% loan, 40% grant and 10% equity or as
approved by Competent Authority

3) Overheads is taken as 5% of [Expenditure on development (Actual basis)+ DPR

& SQC including GST] recoverable in 10 years to meet out administrative
expenses.

4) Loan tenure is taken as actuals for the concerned project. Interest

calculations are done as per EMI sheet provided by bank for entire tenure

5) For calculations, whole loan & equity is assumed to be invested initially (t=0)

6) Return on equity is calculated at rate decided by Board

7) Net development rate consists of two components

a. Component 1 due to full loading of whole Loan principal, cumulative interest

for entire loan tenure and overheads. The cumulative interest charged on entire
loan tenure is loaded for component 1 calculations

b. Component 2 due to full loading of whole equity contribution and return on

whole equity for first year

And

For subsequent years, Balance recoverable equity and return on this balance
recoverable equity at the start of each year

79
 8) Component 1 calculation Base rate = (Loan Principal + Cumulative interest for
entire loan tenure + Overheads)/(initial allottable land) Now discounts are given
on this base rate which are as given below:

Year 1 2 3 4 5 6 7 8 9 10
Discount -10% 0% 6% 12% 18% 24% 30% 36% 42% 48%

9) Year 1 starts after industrial area is notified. if the notification is issued before
30th September, then year 1 rate will be applicable till 31 March of same
financial year. If the notification is issued after 30th September, then year I rate
will be applicable till 31 March of next financial year.

10) Year 1 rate will also be applicable for pre-booking.

11) Component 2 calculation

a. First Year calculation

Component 2 rate = (Total Equity)*(1+ROI as decided by Board) / Total allottable

area

b. Year n+1 calculation

Component 2 rate = (Balance equity at nth year)*(1+ROI as decided by Board)/

Balance allottable area

12) Development Charge:

Net development charge for any year = Component 1 rate + Component 2 rate

13) As the interest rate is floating, every year interest will be recalculated if
interest rate changes.

14) n+1 th year rate will not be less than nth year rate

15) If rate of n+1 year works out to be less than nth year then it will be kept
same as nth year rate.

Vivek Porwal

Managing Director (MPIDC)

Note : This document is English translation of Madhya Pradesh MSME ko Audyogik

Bhumi tatha Bhavan Awantan evam prabandhan niyam 2021 (Hindi Version).

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81