No conversion charges if manufacturing units shift to hi-tech and services sectors in Delhi

New Delhi: Manufacturing units in Delhi’s industrial areas will not have to pay conversion charges if they decide to switch over to the hi-tech and services sectors, industries minister Satyendar Jain said on Tuesday.

Jain said if entrepreneurs wants to change their industry, they will not be charged a conversion fee as the Delhi government has decided to waive it off.

“We are not removing the old industries, we are just making them shift to hi-tech services. Second, we have increased the floor area ratio (FAR) of certain industrial plots irrespective of their sizes. The new FAR has been approved as per industrial standards,” Jain said in a meeting with representatives of industrial associations.

Sanjay Vig, general secretary of the Industrial Area of Mangolpuri, said this will reverse the traditional trend for the industries in Delhi. “It will cut down industrial and labour cost, generate employment and prove to be a positive development for the industries in Delhi,” he said.

According to a recent notification issued by the government, only hi-tech and service industries will be allowed to operate in new industrial areas in Delhi. The old manufacturing industries have the option to switch to the hi-tech and service sector.

“As per amendments to the Master Plan 2021, hi-tech industries will be set up in the new industrial areas, something that we were trying for the past four years,” Jain said.

The old industrial areas will have the option to shift to new sectors, including computer hardware and software industries, offices of lawyers, media and chartered accountants, IT-enabled services, internet and e-mail providers, and call centres.

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