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RIICO has proposed a new set of rules for the direct land allotment in Rajasthan's industrial areas, aiming to simplify access and lower costs compared to land auctions. The draft allows land allotment to entrepreneurs and MSMEs with government MoUs at reserve prices in select areas, excluding saturated zones. Projects are evaluated based on investment, employment, and timelines, with approvals potentially granted within three weeks. Applications are submitted online, and a lottery process determines allotment among qualified candidates. Beneficiaries pay 25% upfront, with the remainder in three-year installments. Compliance with a three-year production timeline is mandatory, with penalties for delays.
RIICO has proposed a new draft policy for direct land allotment in Rajasthan's industrial areas, aiming to address long-standing industry criticisms of the existing land auction process. The auction system, often cited as a barrier to industrial growth in Rajasthan due to its role in inflating land costs, is now being reconsidered in favor of a model designed to make land more accessible and affordable. This shift aims to accelerate the development of industrial projects in the state and provide much-needed support to both large and small businesses. Advertisement
Under the new policy, RIICO will allow direct allotments of industrial plots at reserve prices in identified zones, excluding those that are already saturated. The initiative will benefit entrepreneurs who previously signed Memorandums of Understanding (MoUs) with the Rajasthan government in preparation for the Rising Rajasthan investment event. These entrepreneurs will be eligible to receive land at the current reserve price in designated industrial areas, a shift that is expected to streamline the process of launching industrial projects.
The allotment process outlined in the draft policy takes multiple factors into account, including the proposed capital investment, expected employment generation, production timelines, and prior experience in running industrial projects. For projects that meet RIICO's standards, land can be allotted within a three-week timeframe, expediting the setup phase for businesses.
Moreover, the draft includes a special provision for Micro, Small, and Medium Enterprises (MSMEs). A lottery-based system will be used to allot land to eligible MSME entrepreneurs in specified subdivisions and rural regions. Only those MSMEs that signed MoUs with the government during the Rising Rajasthan roadshows will be considered for allotment, once again at reserve prices specific to each industrial area.
Ajitabh Sharma, RIICO chairman and Additional Chief Secretary (ACS) of Industries, highlighted a key change in the allotment regime: the removal of a minimum investment requirement. This revision opens opportunities for smaller industries to access land through direct allotment, encouraging a more inclusive industrial landscape.
Applications for industrial plots will be managed online, and allotments will follow a lottery process for applicants who fulfill technical criteria. Additionally, applicants must present project reports for review, and those with suitable proposals will receive land based on merit.
To ensure timely project execution, the policy mandates that production commence within three years of allotment. Specific stages will be monitored from the time of allotment until production begins. For projects requiring more time, a two-year extension with penalties is available. The policy also allows entrepreneurs to pay 25% of the plot price at the time of allotment, with the remaining 75% balance spread over three years in installments.
In conclusion, the proposed direct land allotment policy by RIICO represents a significant shift towards enhancing industrial growth in Rajasthan. By simplifying the allotment process, removing minimum investment requirements, and prioritizing MSMEs, the initiative aims to make land more accessible and affordable. This strategic move is expected to accelerate project development, stimulate economic growth, and foster a more inclusive industrial environment.
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