The Greater Noida Development Authority has launched an open-ended industrial scheme for allotment of industrial plots in Greater Noida phase 1 sectors. The rates for the plots range from INR 3900 per sq m to INR 10,790 per sq m (applicable till March 31, 2017). However, for industrial facilities such as warehousing, research and development center, tool room, test labs, cable TV network, weigh bridge maintenance and packing machineries, the applicable rates are one and a half times more than the prevailing industrial rate of that area. To make the environment more business friendly, the allotment letters will be issued within a month of approval from the authority through an online process. According to the scheme, the money would be refunded to the unsuccessful applicants with 4% simple interest for the delayed period after one year. In line with the previous policy, an early production incentive is also available at INR 50 per sq m for the units that will start production within two years from the date of allotment or will construct at least 50% of the permitted covered area.
Colliers Research view
The open-ended industrial plot allotment scheme should build a more conducive environment for manufacturing firms to set up their base and will boost employment in Greater Noida area. In the past couple of months, Noida market has been witnessing increased attention from technology and manufacturing firms. Several manufacturing companies such as Intex, Vivo, Micromax and Oppo are already in process of setting up their manufacturing units in the area. Besides this, we saw an early sign of interest from other companies such as Samsung, Patanjali, Ducati and Salcomp to establish their manufacturing base in this area. With a number of mobile component suppliers and manufacturing companies establishing their base in this location we can see an ecosystem for manufacturing being created in this area.