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GIDC plots to be offered to SMEs at 50% lower rate

Ahmedabad | Updated on May 17, 2018

Nitin Patel, Deputy Chief Minister, Gujarat. (file photo)

In a major boost for small businesses and entrepreneurs in the State, the Gujarat Government has announced 50 per cent reduction in the cost of GIDC plots.

As per the decision taken by the State Cabinet, the plots to be allocated under the GIDC industrial estates having a size of up to 3,000 square meters, will be charged 50 per cent less than its original cost to benefit small and medium units.

Nitin Patel, Deputy Chief Minister, Gujarat, said, "We have done drastic changes in the process of land allocation and pricing to develop industrial estates. As decided in the Cabinet meeting, if the GIDC allocates plots of up to 3,000 square meters to the small and medium enterprises, then GIDC will have to pay 50 per cent less for that land. Subsequently, GIDC will sell such plots to small businesses at half the rate."

GIDC is the nodal agency to develop industrial estates in the State and facilitate industrial development. The State Government sells industrial land to GIDC, which develops the estates, makes the plotting and sells the plots to the industries. As per the current practice, in some cases, GIDC had to pay more price for the land due to higher market prices. This resulted in costlier plots for the small businesses.

"The decision is aimed at creating employment through entrepreneurship and supporting small and medium businesses by providing cheaper plots in the industrial estates. This will also help in developing ancillary industries in the state," Patel said.

All other plots with the size higher than 3,000 square meters will continue to cost at 100 per cent rate, Patel clarified.

Published on May 17, 2018

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