What government incentives support land acquisition or industrial development?

Government incentives play a vital role in supporting land acquisition and industrial development, particularly for projects located in designated growth corridors, industrial parks, or special economic zones. These incentives are designed to lower entry barriers, reduce capital costs, and stimulate investment in manufacturing, logistics, and infrastructure. Below are five key categories of government support available to developers and investors:

1. Capital Subsidies and Financial Grants

• State and central governments provide capital investment subsidies to offset land acquisition and infrastructure development costs.
  
• Applicable under schemes like:
  
  • State Industrial Policies (e.g., Tamil Nadu, Maharashtra, Gujarat)
    
  • MSME cluster development programs
    
  • North East Industrial Development Scheme (NEIDS)
    
• Subsidies typically cover a percentage (e.g., 25–50%) of eligible capital expenditure, including land, buildings, and machinery.

2. Stamp Duty and Registration Fee Exemptions

• Land purchases for industrial use often qualify for reduced stamp duty or 100% exemption under notified zones or sectors.
  
• Applicable during:
  
  • First registration of land parcels for approved projects
    
  • Lease deeds executed with industrial development corporations (e.g., MIDC, TIDCO)
    
• Exemptions are usually tied to project approval under state Single Window Clearance systems.

3. Interest Subsidy and Credit-Linked Incentives

• Industrial developers and units may receive interest subsidies on term loans taken for land acquisition, infrastructure, or machinery.
  
• Rates range from 2%–7% depending on:
  
  • Location in backward or priority districts
    
  • Sector classification (e.g., textiles, food processing, logistics)
    
• Central schemes such as the Credit Linked Capital Subsidy Scheme (CLCSS) may also apply for eligible SMEs.

4. Land Allotment and Lease Benefits by Industrial Development Authorities

• State-run industrial boards offer pre-zoned land parcels on long-term lease or a deferred payment basis.
  
• Includes:
  
  • Preferential land allotment rates for anchor industries
    
  • Flexibility in lease periods (30–99 years)
    
  • Moratorium on payment during the initial construction phase
    
• Available through authorities like GIDC, APIIC, KIADB, and RIICO.

5. Tax Incentives and Infrastructure Support

• Projects in designated areas (e.g., SEZs, industrial corridors, NIMZs) may receive:
  
  • GST reimbursement or deferment
    
  • Electricity duty exemptions for a specified period
    
  • Reimbursement of land conversion or approval charges
    
• Access to government-funded infrastructure, such as roads, water, and power, at subsidized rates.
  
• Incentives are often bundled into state-level MoUs signed with large investors.