DDA notifies charges for allowing permitted land use change in Delhi’s industrial clusters

DDA notifies charges for allowing permitted land use change in Delhi’s industrial clusters

Move expected to decongest Delhi’s industrial areas and move polluting units to the periphery

In an attempt to decongest Delhi’s industrial areas and move polluting units to the periphery, Delhi Development Authority (DDA) has notified charges for allowing permitted changed land-use in industrial plots, as residential or commercial or hospital.

What this means is that existing industrial clusters located in the middle of residential areas such as Mayapuri, Lawrence Road, Patparganj, Okhla etc may now go in for land-use change after payment of conversion fees.

The change in land-use is subject to payment of a conversion fee. Conversion charges for permitting residential use varies from Rs 14,328 to Rs 24,777 per sq m and additional FAR (floor area charges) have been fixed from Rs 3, 039 to Rs 7,597 per sq m in various industrial areas, a Housing and Urban Affairs Ministry release said.

These charges are based on circle rates of adjoining residential areas, it said.

The use conversion charges for permitting commercial/hospital use is 1.25 times of the rates of use conversion charges of residential. The token processing fee/facilitation charges for amalgamation of plots shall be applicable as per notified rates varying from Rs 1 lakh to Rs 4 lakh, depending upon the size of the plots to be amalgamated, it said.

The impact is unlikely to be immediate. It may take another five years to create new stock.

“The larger vision is to decongest the core of the city and drive industry to the fringes, push industries to areas such as Narela or Bawana and create more stock because industry is no longer viable in these areas and is also polluting,” explains Ramesh Menon of Certes Realty.

But challenges remain. These include amalgamation of land. How many owners would be willing to come together? Other challenges include evolving a fresh layout plan, attracting investors and infrastructure relations issues, he adds.

Most of these industrial areas were developed in the 1970s and over the years have deteriorated considerably in terms of physical infrastructure.

Most of the industrial areas are located along mass public transport corridors and there is a need to optimize land use of these areas through the process of redevelopment. Redevelopment of such areas is based on certain parameters, spatial planning norms and environment related conditionalities regarding provisions and augmentation of essential infrastructure and services, a ministry release said.

The central government by way of modifications in the Master Plan 2021 has already permitted residential use (group housing) on any existing industrial unit(s)/plots with a minimum area of 3000 sqm abutting road 24 m. On such plots, 1.5 times FAR of the permissible FAR of group housing is permitted as well as amalgamation of smaller industrial plots and sub-division of larger plots as prescribed for group housing in MPD-2021 and Unified Building Bye-Laws 2016.

MPD-2021 also permits other non-industrial activities such as commercial or hospital on industrial units /plots abutting roads of 24 mtr, right of way (ROW) and above. These non-industrial activities on such plots are permitted subject to payment of conversion and other betterment levies as applicable.

The policy also provides for construction of EWS flats which will provide respectable living for lower strata of society.

A time period of five years has been allowed for completing construction.

The charges collected will be utilised for augmentation of services, infrastructure and upgrade of surroundings of that industrial area, the release added.

Source: Moneycontrol.com
Dated: 4th July 2018

Category : MPD-2021 News

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