Maharashtra mulls transfer of cooperative industrial estate land to private players

July 26, 2023

The Maharashtra government is considering transferring land patches of non-functioning and liquidated cooperative industrial estates (CIE) to private players, based on demand.

“The State has received demands to acquire the land of non-functional CIEs and provide it to new industrialists and existing industries,” State Industry Minister Uday Samant told the legislative council recently in reply to a written question on CIEs. However, the Minister did not say whether the State government has taken any action on the demand to transfer CIE land to industrialists; he added that the government has sought all information related to the CIEs.   

Maharashtra has 142 registered CIEs, of which 99 are operational with 8,037 industrial units employing 1,79,474 people.  

Liquidated CIEs

According to information provided by the State government to the legislative council, 14 CIEs are in liquidation while 29 have not started operations; 48 have been allocated land on lease by the State government while the local district administration has leased land to eight CIEs; 75 CIEs have their own land while five have acquired land by paying the occupancy price; the Maharashtra Industrial Development Corporation (MIDC) has provided land to six CIEs.

Land in demand

Land prices in the industrial areas of the State are skyrocketing and the move to transfer CIE land may change the dynamics in the local industrial estates.  

A minimum of two acres and 10 members are needed for the formation of a CIE. The land is alloted by the government on a long-term lease, and where government land is unavailable the government acquires land and allots it to the society on nominal rent. The societies may also purchase private land to set up a CIE.

 The main objective of CIEs is to relocate industries concentrated in urban areas to rural areas and generate more employment in those areas.

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