The Gujarat government recently unveiled a new policy aimed at streamlining land allocation to the Gujarat Industrial Development Corporation (GIDC). The policy introduces a clear and simplified system, setting fixed rates for land allocation based on the level of development within industrial estates.
This is designed to speed up the land allocation process and make it more efficient. Under the new system, land in less developed estates will be allocated at 100% of the existing jantri rates, while land in moderately developed estates will be allocated at 125%. In developed estates, land will be allocated at 150% of the existing rates. This approach is expected to replace the previous system, which was more time-consuming and involved multiple approval layers.
Historically, the land allocation process in Gujarat was hindered by delays due to the involvement of several departments and committees. A district-level valuation committee (DLVC), headed by the district collector, would determine the value of land parcels. These valuations were then sent to the revenue department for approval and were later ratified by the chief minister's office before the land could be allocated to GIDC.
This process, while thorough, often led to significant delays and caused uncertainty for investors, particularly in the MSME sector. In the past, the lack of clarity and lengthy approval processes presented significant challenges for MSMEs and larger industrial projects. The new policy aims to address these issues by offering more predictability and reducing time spent on land allocation.
This is expected to create a smoother investment environment and encourage faster industrial development in the state. According to a government official, the decision to standardize land rates and simplify the allocation process will save time and improve efficiency. The official added that this move will particularly benefit small and medium enterprises (MSMEs) by making land acquisition easier and more transparent, helping to resolve investment-related uncertainties.
Once GIDC acquires the land at the prevailing rates, it will develop the necessary infrastructure and allocate plots to industries, charging them a fixed development cost. This should further streamline industrial development across the state, providing more opportunities for businesses to set up operations quickly and efficiently. The new land allocation policy introduced by the Gujarat government marks a significant step towards improving the efficiency and transparency of the land allocation process for industrial development.
By introducing fixed rates for land across different levels of estate development, the government aims to speed up the process, reduce uncertainty, and attract more investment. This policy is expected to be particularly beneficial for MSMEs, providing them with the clarity and convenience needed to set up and grow in Gujarat's thriving industrial sector. With the streamlined process, the state is well-positioned to continue its industrial growth, fostering a more business-friendly environment for all investors.
