Manufacturing units in Delhi won’t have to pay conversion charges if switched to hi-tech sector

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Updated: Nov 10, 2020 6:28 PM

"We are not removing the old industries, we are just making them shift to the hi-tech services. Second, we have increased the floor area ratio (FAR) of certain industrial plots irrespective of their sizes. The new FAR has been approved as per industrial standards," Jain said in a meeting with representatives of industrial associations in Delhi.

The old manufacturing industries also have the option to switch to the hi-tech and service sector.The future investment outlook was subdued as only 18 per cent respondents reported plans to invest for capacity additions for the coming six months.

The manufacturing units in Delhi’s industrial areas will not have to pay conversion charges if they decided to switch over to hi-tech and services sector, Delhi’s Industries Minister Satyendar Jain said on Tuesday. He also said that if an entrepreneur wants to change his industry, he will not be charged a conversion fee as the Delhi government has decided to waive it.

“We are not removing the old industries, we are just making them shift to the hi-tech services. Second, we have increased the floor area ratio (FAR) of certain industrial plots irrespective of their sizes. The new FAR has been approved as per industrial standards,” Jain said in a meeting with representatives of industrial associations in Delhi.

As per a recent notification issued by the central government, only hi-tech and service industries will be allowed to operate in new industrial areas in Delhi. The old manufacturing industries also have the option to switch to the hi-tech and service sector.

“As per the amendments to the Master Plan 2021, hi-tech industries will be set up in the new industrial areas, something that we were trying for the past four years,” Jain said.

The old industrial areas will have the option to shift to new sectors, including computer hardware and software industries, offices of lawyers, media and chartered accountants, IT enabled services, internet and e-mail providers, and call centres.

Sanjay Vig, general secretary of the Industrial Area Mangolpuri, lauded the policy as a revolutionary step for the industries in Delhi. This will reverse the traditional trend for the industries in Delhi. It will cut down industrial and labour costs, generate employment and prove to be a positive development for the industries in Delhi, he said.

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