Move aims to remove disparity between GIDC and non-GIDC parks, boost land use efficiency
In a key policy decision to promote industrial growth and optimize land use, the Gujarat government has approved an additional 0.6 Floor Space Index (FSI) for industrial units located within Urban Development Authority (UDA) and Municipal Corporation limits.
With this decision, industrial units in these areas can now avail a total FSI of 1.6 — including the existing base FSI of 1.0 and an extra 0.6 FSI, which will be charged at 30% of the Jantri rate (government-notified land price).
According to the Urban Development Department, the move is part of the Gujarat Industrial Policy 2020 framework. From now on, development permissions and layout plans for industrial parks within UDA and Municipal Corporation limits can include this additional chargeable FSI.
Previously, under the CGDCR-2017 regulations, industrial zones under AUDA, VUDA, and SUDA were limited to an FSI of 1.0, while Gujarat Industrial Development Corporation (GIDC) estates enjoyed higher FSI allowances. This disparity had been a long-standing concern among industrial associations, who had been demanding equal treatment for non-GIDC parks.
The new policy brings parity between GIDC and non-GIDC industrial areas and is expected to spur industrial expansion, attract new investments, and generate more employment opportunities. Officials said the higher FSI will also encourage efficient land utilisation and better industrial planning.
Meanwhile, the state government is working on a new industrial policy expected to be unveiled soon, which will likely include incentives for emerging sectors such as renewable energy, electronics, and advanced manufacturing.