CLU Fees (Change of Land Use) Permission
CLU Fees– In order to development of Urban and Industrial Area, the department of Town and Country Planning grants the license to the land owners for the development of Residential, Commercial, Industrial and IT park etc.
Since Warehousing is also covered under Commercial activity, So if you are going to plan for warehousing business then you should be aware of applicability of CLU Norms.
If the proposed land on which you are going to plan construct Warehouse/Any other business, has fallen under the control area as defined by the District Town Planning then you need to take CLU Fees for such land.
In case if your proposed land has not come under the ambit of control area then you need to take only NoC (No Objection Certificate) from the department.
Further, The whole area is divided into different zones by the State department according the development potential. Zone define the geographical location of land. So before applying the CLU, you need to know the Zone in which your land is fallen.
Eligible person to apply for CLU Fees:
The license will be issued to the person who have clear title of land in their favor. The following are the eligible person for apply CLU Fees as:
1. Company having ownership of land
3. Group of persons/Firm
Conditions to be fulfil before the application for CLU Fees:
1. The land is free from all encumbrances.
2. The Owner should have submit the proof of financial capacity to develop the proposed project.
Fees and Charges:
1. The Land owner is required to pay scrutiny fees as applicable for the gross area along with the application.
2. There is license fee and conversion fees to be paid for the CLU.
3. The Owner also required to pay Infrastructure Development Charges (IDC) and External Development Charges (EDC).
Documents required for apply of CLU Fees:
1. Copy of deeds showing the title of land in their favor.
2. Shajra plan
3. A survey plan of the land
4. Land utilization Plan
5. Project report
6. SSI certificate/registration certificate with industries department.
7. Fees Paid receipts
Validity of the CLU Fees:
The CLU permission grant by the department is valid for the 2 years from the date of order during which all works for putting the said land to be permitted shall be completed. However, permission may be renewed for a further period of 1year if the Director is satisfied with the reason for delay.
Financial Assistance/Subsidy/Benefits Available:
Generally state Govt are providing various financial incentives for the purpose of Industrial Development such as:
1. Refund of EDC :
State govt has notified the provision in their respective state Industrial Policy for the refund of External Development Charges. It may be 50% to 100%. So you can take the benefits of such policy.
2. Refund of Stamp Duty:
Generally, State govt has also notified the provision in their respective state Industrial Policy for the refund of stamp duty paid on buying of Land for the purpose of Industrial Activities. It may be 50% to 100%. So you can also take the benefits of such policy at the time of starting any business.
So if you are planning for the setup of new business then you have to check whether that area required the Change of land use permission or required the NOC from Department of Town and Country Planning for the industrial use of that land.
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