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AHMEDABAD: Gujarat government has decided to modify its policy on Industrial Parks in the wake of discouraging economic conditions. A floor limit of 100 acres has been fixed for the parks and stamp duty will be further relaxed. Unlike the SEZs, where export is mandatory, units in these parks have freedom to sell their products in domestic as well as international market.

The previous policy did not stipulate any floor limit for area under the industrial parks. Often, this resulted in a captive industrial park by the developer company or it being restricted to only a handful of companies. "The government now wants the parks to open up for companies that were earlier interested to set up units in SEZ. So a floor area of 100 acres has been fixed," said a senior officials of state industries department.

So far, SEZ projects by NG Group, City Gold, Nipiam and Essar have been denotified. Mexus and GIDC (Jhagadia) have applied for denotification after lack of interest shown by companies to set up units there.

"Exports are no longer lucrative. Companies are also looking at domestic market and are not keen on SEZ where their trade is restricted to exports. So a new model is needed to provide them a flexibility in choosing the market and companies from different sectors," NG Group chairman NG Patel told ET.

NG group has denotified its Engineering SEZ over 500 acres in Ahmedabad. Instead, it is now coming up with two industrial parks over 100 acres each. "With sectoral limitations of SEZ no longer applicable in industrial parks, more and more companies have approached us to house their units," said Patel.

Surendranagar-based Makson Industries had earlier applied for an SEZ but has now revised the application to set up an industrial park in the district. Nearly 15 companies are willing to set up industrial parks, said a government official.

The government will provide financial assistance of up to Rs 10 crore for setting up infrastructure like road, drainage, water distribution, etc, in the industrial parks developed by private players so that parks companies can operate on 'plug and work'. The developer is also entitled to a 50% concession in the stamp duty.

Analysts believe that the changes can bring more industries into the industrial parks in wake of global slowdown. "The slowdown, especially in Europe, has made many companies seek alternative destinations for investment," CRISIL advisor Sunil Parekh told ET.

Gujarat has 15 functioning SEZs. While 17 projects have been notified, formal approval has been granted to 13 projects and an equal number has been accorded in-principle approval