500 industries planning to use hiked FSI for expansion

NASHIK: After the Maharashtra Industrial Development Corporation (MIDC) recently approved the implementation of 1.5 floor space index (FSI) for its industrial estates across the state, around 500 small and medium enterprises (SMEs) in Satpur and Ambad are planning to use the hiked FSI to expand their existing facilities.
As per its new industrial policy (with effect from April 1, 2013), the state government increased the FSI from existing 1 to 1.5 in industrial estates of the MIDC.However, the implementation of hiked FSI was delayed as the MIDC had not issued any official circular in this regard. On March 10, the MIDC finally issued a circular giving its nod for the implementation of 1.5 FSI. Accordingly, the companies, which are planning expansion of their existing facilities, have started approaching their industrial associations for the details pertaining to use of 1.5 FSI.
Speaking to TOI, Manish Kothari, president of Nashik Industries & Manufacturers' Association (NIMA), said, "As both Satpur and Ambad industrial estates are fully occupied and there is no land available for the industries, the hiked FSI will definitely help the existing SMEs to go for vertical expansion. Although the MIDC has just issued a circular in this connection, the entrepreneurs are approaching us for the details. At present, the industries are busy finalizing their financial statements of the current financial year. The SMEs are expected to revive their expansion plans from next month, which will mark the commencement of the new fiscal."
A senior government official said on the condition of anonymity, "Around 500 SMEs from Satpur and Ambad have put on hold their expansion plans due to lack of land. The total expansion cost of these industries is estimated at around Rs 700 crore."
Sunil Chitre, chairman of Spire Tank & Vessels Pvt Ltd, who has his manufacturing unit at Ambad industrial estate, said, "I had put on hold my expansion plan due to lack of land. But with the hike in FSI from 1 to 1.5, I am planning to expand my existing facility. I have administrative set up and testing labs on half of the area, while the other half deals with production. Now, I am planning to use the ground level for manufacturing and will move the administrative set up and testing labs to the first floor. I am planning expansion worth Rs 50 lakh at the existing facility."
Shrikant Navandar, CEO and managing director of Satish Injecto Plast Pvt Ltd, said, "Due to lack of land her, I shifted some of my production set up to Chakan near Pune. Moreover, I had expansion plans in Hardwar. Although the MIDC has enhanced the FSI by 0.5, I will not be able to make full expansion. However, I am planning to expand production capacity to some extent. I have immediate expansion plans worth Rs 10 crore at the existing facility in Ambad."
There are around 3,500 micro, small, medium and large industrial units in Satpur and Ambad industrial estates of MIDC. Both the industrial estates are fully occupied and there is no land available for the industries. The MIDC has notified around 5,000 hectares of land for the industries at various locations across the district, which are in various stages of acquisition.