SIPCOT issues REoI from landowners to develop JV industrial parks
SIPCOT will explore a new model of having JVs with landowners
The State Industries Promotion Corporation of Tamil Nadu (SIPCOT) has issued a Request for Expression of Interest (REoI) recently from land owners to develop the JV industrial parks across Tamil Nadu to enable all districts to become industrial hubs.
SIPCOT will explore a new model of having JVs with landowners to develop industrial parks across Tamil Nadu.
The earlier model of SIPCOT was to acquire land and develop the parks. While continuing with this model, SIPCOT will hand-hold developers through JVs. Land owners with more than 100 acre can partner with SIPCOT.
The project will be developed by them with SIPCOT lending its brand and providing all necessary help.
SIPCOT has so far developed 23 industrial complexes/parks, including seven sector-specific special economic zones (SEZs) across Tamil Nadu in about 34,000 acre spread over 15 districts. It also has land banks across the state for prospective and new age industries to enhance their manufacturing footprint.
In the new model, SIPCOT will have a minority shareholding of two to 11 percent in the JV depending upon the capital-intensive nature of the development of the industrial park.
The promoter will undertake design, development, operations and maintenance of the industrial park.
In the proposed JV industrial parks, SIPCOT’s role will be limited to providing equity in the form of paid-up capital/contribution of government poramboke land (dry land); rendering its brand name; ensuring smooth transfer of the benefits extended by the state government for the industrial units proposed to be set up in this JV park and rendering its knowledge and expertise in development and operations of the park (if required by the promoter).
The industrial parks developed in JV with SIPCOT will be granted 50 percent exemption on stamp duty on the value set forth in the instruments by the JV company.