Q1. What is Policy of Govt. of NCT of Delhi for promotion and development of Industries in Delhi?

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1 FAQs (Policy) Q1. What is Policy of Govt. of NCT of Delhi for promotion and development of Industries in Delhi? Ans. Because of land constraint scope of setting up new industrial units are limited in Delhi. However, vision under Industrial Policy 2021 of National Capital Territory of Delhi is to make Delhi a hub of clean, high technology and skilled economic activities by 2021 by policy shift essentially to change industrial profile from low-skilled to high tech and high skilled by adopting following strategy:- (i) Infrastructure Development through better maintenance of industrial estates. (ii) Facilitating business by simplification and e-enabling measures. (iii) Support skill development & other promotional measures like allowing knowledge based Industries in industrial area among others. (iv) Decongesting industrial areas through redevelopment schemes. (v) Promoting cluster development of high- technology and skilled industries in new industrial areas. (vi) Discourage polluting industries through higher infrastructure development fee. Q2. What are the objectives of Industrial Policy 2021? Ans. Objectives of Industrial Policy of NCT of Delhi are as follows: (i) Promote non-polluting and clean industries. (ii) Promote high-technology and skilled industries in Delhi, to attract skilled labour. (iii) Develop World Class infrastructure within existing planned industrial estates and regularize industrial clusters. (iv) Promote cluster approach and walk to work concepts, wherever possible. (v) Facilities business through procedural simplifications and e- governance measures. (vi) Promote transparent and business friendly environment. Q3. What type of Industries are allowed to be set up in Delhi?

2 Ans. Setting up of Industries are governed by provisions as laid down in Chapter-7 of Master of Delhi 2021 (Refer to the website of Delhi Development Authority). For each area i.e. Residential, Villages (Abadi), Community Centres, District Centre, Service Market/ Centres and for Industrial Areas different norms have been prescribed under the Master Plan as below: Parameters for Industrial Units in Different Use Zones and Use Presmises Use Zone/ Use Premises Groups Permitted Conditions (Refer Annexure Max. no. of Max. Industrial Of MPD 2021 Workers Power Load(KW) Chapter 7) Residential Use (a)residential A 5 5 (b)villages(abadi) A+A1 5 5 Commercial Use (a) Convenience Shopping 5 11 Centre, Local Shopping Centre A+A1+B (b) Community Centre Service/ repair/ 9 11 ( c ) District Centre packaging/ assembly (d) Service Market, Service Centre (without manufacturing) of permissible industries Industrial Use (a) Plotted development All industries except those prohibited and of Non Polluting and nonhazardous nature, As per need As per need (b) Flatted Industries All industries except those prohibited and of Non-polluting and nonhazardous nature, excluding industries producing noise/ water/ vibrations/ odour pollution 20 As per need

3 Q4. Whether any industrial unit can be set up at residential premises? Ans. Yes, industrial unit can be set up at residential premises for house hold industries with maximum 5 workers and maximum power requirement of 5 kw as well as maximum 50% area of the dwelling unit can be used for industrial purpose (Refer to list of 112 house hold items as prescribed under Master Plan of Delhi 2021, visit website of Delhi Development Authority Chapter-7, classification of Industries Group- A). No pollution either water, air and noise should be caused by industrial unit under house-hold category. Whereas no industrial activity is allowed in following zone:- (i) (ii) (iii) (iv) Lutyen s Bungalow Zone Civil Line Bungalow Zone Employer Housing Group Housing (excluding Janata Flats) Q5. What are the mandatory requirements to set up industrial units in Delhi? Ans. All industrial units should conform to provisions of Master Plan of Delhi (HPD) 2021 and environmental laws/ rules. Apart from other permissions Factory Licence from respective Municipal Corporation of Delhi and consent to establish from Delhi Pollution control Committee is mandatory requirement to establish industrial unit in Delhi. Q6. Which type of Industries can t be set up in Delhi? Ans. Refer to the Annexure-III, prohibited/ Negative list of Industries of MPD 2021 under chapter-7 (visit website of Delhi Development Authority) i.e. There is a list of 99 types of industries in MPD which falls under negative/ prohibited list.

4 FAQs (Land) Q1. Whether land can be allotted for setting up new industrial units in Delhi. Ans. Yes, in accordance with the schemes notified from time to time. Q2. Whether there is any scheme to be launched in near future by Govt. of NCT of Delhi for allotment of land/ plots for setting up new industrial units by the entrepreneurs. Ans. At present there is no scheme in operation for allotment of plot for setting up industrial units, however, as and when it shall be launched a public notice shall be issued in this regard. Q3. How to set up new industrial units in Delhi when there is no provision for allotment of land/ plot/ flatted factories/ built up sheds to new entrepreneurs. Ans. New entrepreneurs can set up units in Delhi in approved areas by direct purchase of free-hold industrial plots; purchase of lease-hold plots with the approval of the lessor which would entail 50% unearned increase or by renting premises. Q4. What are the requirements for grant of sub-letting permission for lease hold plots/ sheds? Ans. The requirements for grant of sub-letting permission for lease hold plots/ sheds are:- a) Application on prescribed format duly filled in by the Lessee on record. b) A copy of site plan indicating the subletting area. c) Constitution and activity of the sub-lettee unit. d) An undertaking from the Lessee that the sub-letted area is less than 50% of the plot/ shed. e) An undertaking from the allottee that there is no subletting in the plot/ shed prior to this. Minimum area for subletting is 250 sq. ft. but not more than three tenants are allowed in one building. The Government charges a fee of Rs.1/- per sq. ft. per month from the allottee. Sister concern are treated as tenants. Units involved in IT & IT enable service are exempted from subletting charges.

5 Q5. What are the rates for unearned increase chargeable for change in constitution of leased plot? Ans. The market rates for unearned increase are notified by the Lessor/ Govt. from time to time. The market rates notified for the period (upto march 2014) for different areas are given below: MARKET RATES FOR CHARGES Sl. No. Name of Industrial Area Provisional market rates for UEI Charges (In Rs. Per sq. mtr.) Patparganj Industrial Area 63, Jhilmil Industrial Area 63, Badli Industrial Area 63, Bawana Industrial Area 63, Mangol Puri 71, Okhla Industrial Estate 93, Okhla Industrial Area 93, Narela Industrial Area 63,992 Q6. Whether industrial plots can be mortgaged to any financial institution by the owner/ lessee for raising Capital Loan or Working Capital. Ans. Yes, the freehold industrial plots can be directly mortgaged by owner to the financial institution whereas Leased Plot can be mortgaged to any financial institutions like banks owned by Govt. Prior permission of the land owning agency is required. Requirements to mortgage the lease properties are as below: (i) (ii) (iii) (iv) Confirmation from the bank/ institution from which loan is to be availed. Affidavit for loan availing mortgage permission earlier or relinquishment as the case may be. Certificate on letter head from the lessee for non-violation of any or one of the lease agreement. Details of manufacturing activity of the unit. Q7. Can an allottee/ lessee change his industrial activity.

6 Ans. The allottee/ lessee at any time can change his activity to any permissible industrial activity as prescribed in Master Plan of Delhi 2021 (list of permissible activities is given in chapter-7, visit website of Delhi Development Authority i.e. MPD-2021, chapter-7 to get the details). Q8. What are the conditions for approving transfer/ sale/ change in constitution of lessee unit? Ans. Such transfers are allowed by the lessor after 10 years from the lease deed and charging 50% of the unearned increase of the value of the plot. Transfer within the family does not attract unearned increase Family as per guidelines in relation to the Lessee(s) means the individual, the wife or husband as the case may be, father, brother, major son, unmarried daughter/ sister and minor children of the Lessee(s). Q9. Can mutation of an industrial plot be done after the death of the lessee? Ans. Mutation is allowed in favour of legal heir/ heirs. Q10. Whether the industrial plot can be converted from lease-hold to free-hold? Ans. Yes, built up industrial plot can be converted to free-hold under the free-hold scheme. Q11. What are the details of the free-hold scheme? Ans. The detail of the scheme can be seen on the Department s website i.e. Q12. Which are the industrial areas in Delhi? Ans. Delhi has the following industrial areas: 1. G.T. Karnal Road Industrial Area 2. Rajasthani Udyog Nagar Industrial Area 3. S.M.A. Industrial Area 4. S.S.I. Industrial Area

7 5. Wazirpur Industrial Area 6. Lawrance Road Industrial Area 7. Udyog Nagar Industrial Area 8. Mangol Puri Industrial Area 9. Badli Industrial Area 10. Narela Industrial Area 11. Bawana Industrial Area 12. Okhla Industrial Area, Ph.-I & Ph.-II 13. Okhla Industrial Estate, Phase-III 14. Mohan Cooperative Industrial Estate 15. Rani Jhansi Road 16. Shahzeda Bagh Industrial Area 17. Jhilmil Industrial Area 18. Friends Colony Industrial Area, Shahdara 19. Patpar Ganj Industrial Area 20. Shahdara Industrial Area 21. Naraina Industrial Area, Ph-I & Ph-II 22. Mayapuri Industrial Area, Ph-I & Ph-II 23. Tilak Nagar Industrial Area 24. Kirti Nagar Industrial Area 25. D.L.F. Industrial Area, Moti Nagar 26. Najafgarh Road Industrial Area 27. Flatted Factories Complex at Rani Jhansi Road 28. Flatted Factories Complex, Okhla 29. Flatted Factories for Leather Goods, Wazirpur Industrial Area 30. Flatted Factories Complex at Jhilmil Industrial Area IMPORTANT KEY WORDS Industrial Policy, Permissible Industries, Setting of Industries,

8 Parameters of Industries, Purchase of Land, Transfer of Land, Sub-Let, Industrial Areas Nodal Officer : S.K. SINGH, Dy. Commissioner Industries (Policy/ Land Coordination) Telephone No.: DISCLAIMER THE FAQs AND OTHER DOCUMENTS PLACED IN THE MODALITIES ARE FOR INFORMATION PURPOSE ONLY AND FOR THE GUIDANCE OF THE GENERAL PUBLIC ALL THE DOCUMENTS PRESENTED HERE ARE FOR GUIDANCE ONLY AND CARE HAS BEEN MADE TO ENSURE THAT NO OMMISSION OR CONFILICT SHOULD BE THERE FROM THE LEGAL PROVISIONS. IN CASE OF ANY CONFLICT. THE APPLICABLE LAWS & RULES SHALL PREVAIL THE GOVERNMENT OF DELHI, WELCOMES FEEDBACK FROM USERS FOR RECTIFICATION OF ANY INADVERTANT MISTAKE OR FOR FURTHER ADDITION TO THE DOCUMENT.

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