The Gujarat government is considering giving major incentives to industries that shift their operations from city areas to locations outside city limits.
Under the newly announced THRIVE (Transition for Harmonized Relocation and Inclusive Vibrant Economy) scheme, industries located within municipal corporation areas will be encouraged to relocate outside cities through various benefits.
One of the key proposals is to provide a minimum double Floor Space Index (FSI) to industries that move. FSI determines how much construction can be done on a piece of land. The government is also expected to waive charges related to land conversion and FSI changes.
According to government sources, officials from the industries, mines, urban development, and finance departments have started discussions to decide the exact amount of FSI that will be offered. However, the government has already taken an in-principle decision to provide at least double the current FSI.
At present, industries relocating outside cities receive an FSI of 1.2. Under the proposal, this could increase to 2.5 or even higher to encourage more industries to move.
Industry representatives have responded cautiously to the proposal. They say that proper infrastructure at relocation sites will be essential for the scheme to succeed.
Industry sources also said that companies would prefer relocation sites that are not too far from cities.
Ajay Patel, Chairman of the GIDC Committee of the Gujarat Chamber of Commerce and Industry (GCCI), said that nearly 5,000 industrial units operate in Ahmedabad’s Naroda, Vatva, Odhav, and Kathwada GIDC areas, showing the large scale of industrial activity within the city.
He pointed out that although the state has developed industrial estates in distant locations such as Saykha, only a limited number of units have shifted there because of infrastructure-related issues.
According to Patel, a practical approach would be for industries to first establish new facilities in the new industrial estates, stabilize production, workforce, and supply chains, and then gradually close their older units.
He added that industries need certainty, clear timelines, and adequate support during the transition. For relocation to succeed, the government must provide the required infrastructure and a realistic time frame.
Ankit Patel, former president of the Vatva Industries Association, said relocation would be successful if MSMEs are given options within 100 kilometers of the city, along with environmental infrastructure and faster regulatory approvals.
A director of a leading company said that the focus should not be only on allocating land. Instead, relocation sites must have industry-ready infrastructure such as power supply, water, roads, drainage, connectivity, and clear regulatory support.
The THRIVE scheme also includes other incentives. These include a wage support subsidy of ₹5,000 per employee per month for six months and a capital subsidy for setting up industrial parks and common environmental infrastructure facilities.
Overall, the government aims to encourage industries to move outside city limits through higher FSI and financial incentives, while industry leaders stress that strong infrastructure and practical implementation will be critical for the plan’s success.
Also Read: Navsari Woman Wins ₹20 Lakh Consumer Case Against Stem Cell Banking Company https://www.vibesofindia.com/navsari-consumer-court-orders-stem-cell-company-pay-rs20-lakh-treatment-promise/
