RIICO (Rajasthan State Industrial Development and Investment Corporation) has finally responded to the industry’s needs. The organisation will be setting up provisions for the direct allotment of land in the industrial areas. It was earlier sold through auctions. However, it will now be sold directly. According to sources, auctions are among the top reasons why Rajasthan’s MSMEs lack development. Auctions sell the industrial land at the highest price available at the moment.
RIICO Decides To Support MSMEs By Allowing Direct Land Allotment
RIICO is going to support MSMEs in Rajasthan by directly allocating the land to the industrial areas. They used to get industrial areas on the auctions. Thus, the one who paid the highest price was able to get the area. However, those who didn’t have enough money were not able to buy the land in the industrial area. It slowed down the growth of the MSMEs. Thus, the places where there is no close saturation will be available for direct allotment. Thus, those who signed MoUs will get the land at the direct allotment price.
How will the entrepreneurs get the land directly as per RIICO? The government-led organisation RIICO has proposed a draft. The exact process for the allotment is available in the draft. If the project fulfils the technical and other requirements, then there can be land allotment in three weeks. The government has made it simpler for the MSMEs to buy the land. Thus, there will be no minimum investment requirement as well. The interested ones can directly buy the land.
The one interested in buying those industrial lands can apply online on their site. RIICO will allot land to those who fulfil the technical requirements. Those who buy the land must start the production in three years. If not, there will be a penalty period of two years more. MSMEs or entrepreneurs that are looking for land but unable to buy in auctions must utilise this opportunity. To further ease the process, the buyers are allowed to book the allotment with 25% of the payment. While they can make 75%of the payment in allotments over three years.
MSMEs in Gujarat expanded beyond anyone’s imagination. However, those in Rajasthan lacked because of such conditions. The more the government ease the restrictions, the more will be growth. RIICO has already drafted the rules considering the need of the industry. Thus, it will be interesting to see the growth of the entrepreneurs post its implementation in the state. Stay tuned for more information.