JAIPUR: Investors can now acquire undeveloped and semi-developed industrial land at reduced costs. In a recent directive, RIICO announced that the pricing will be based on the basic land cost (DLC), along with development and administrative fees.
This shift away from transparent auctions aims to draw investors to remote industrial regions where demand is low and land remains unused. However, the directive applies universally to all industrial zones, including urban locations.
According to RIICO’s July 15 order, the government intends to offer more affordable land to industries, with undeveloped and semi-developed land serving this purpose. Industries Minister Rajyavardhan Rathore stated in an interview that this decision aims to achieve two significant goals: monetizing RIICO’s idle land and providing affordable land to industrial units.
The industrial community in the state has advocated for direct land allotments rather than auctions, which increase acquisition costs and reduce competitiveness. Suresh Agarwal, President of the Federation of Rajasthan Trade and Industry, remarked, “This decision will benefit the industry. However, we urge the government to speed up the process for allotting undeveloped land to support larger segments of the industry.”
Conversely, some industry representatives have voiced concerns regarding the allotment process for undeveloped lands. “We wholeheartedly support the government’s effort to offer undeveloped land at lower rates, but the allotment process poses challenges,” they noted, preferring to remain anonymous.
The allotment process is contingent upon RIICO’s Infrastructure Development Committee (IDC), which is largely comprised of RIICO officials. “Ultimately, it will be their prerogative to determine qualified applicants for allotment, introducing the risk of subjectivity in decisions,” they added.
They suggested that allotments for undeveloped land should also be carried out through an auction format. “This would ensure a more equitable process and eliminate concerns about the legitimacy of applications for land,” they concluded.
