JAIPUR: In a significant policy update, the Rajasthan State Industrial Development and Investment Corporation (RIICO) has revised land use regulations for industrial zones, implementing major changes to the Disposal of Land Rules from 1979.
The amendment, issued on Friday, enables the conversion of industrial plots into commercial, residential, institutional, and mixed-use categories, subject to new charges and procedures.
The new framework facilitates the transition of one authorized land-use type to another, representing a notable change in the planning and utilization of industrial land.
Under these updated guidelines, changing industrial plots to commercial use will incur a fee of twice the current industrial rate for that area. Residential or institutional conversions will be charged at 1.5 times the existing rate, while mixed-use developments will face the highest applicable rate.
On the other hand, converting from commercial to industrial or residential use will only cost 0.10 times the industrial rate.
A RIICO official, who requested anonymity, expressed concerns over the leniency of the new rates, suggesting they could compromise revenue. The lower charges might encourage speculative land conversion, he indicated.
“The aim is to provide flexibility and activate unused land, but the new fees don’t align with the current market values. This could lead to undervaluation and lost income potential,” the official remarked.
Additional officials highlighted discrepancies between RIICO’s reserve prices and market values. For example, the reserve price for the Jagatpura Apparel Park Industrial Area stands at approximately Rs 14,500 per square meter, while market rates are around Rs 1.5 lakh.
