PERIOD FOR COMMENCEMENT OF PRODUCTION ACTIVITIES	21	An allottee would be required to have construction activities completed within a period of two years and production activities started within a period of three years from the date of possession or from the date of lease deed execution, whichever is earlier. In cases of plot allotments in NCR on or after 19.5.2006 the allottees would be required to commence construction activities within 6 months and complete the construction within 18 months. (Inserted as per the Office Order No.6/2006 dated 24.5.2006). For this purpose the completion of construction would mean coverage of atleast 20% of the plot area with a pucca structure where roof has been built up. However in case of stone based industries such as marble/ granite/ kota-stone processing units, requirement of 20% constructed area with roof under the rule may be assessed taking into account also the land area being utilized by the allottee as stockyard of raw material and finished goods. In other words the land area (open or covered) being utilized by such allottees for stockyard purpose may also be included for the purpose of calculating constructed area in the plot (Inserted as per the decision taken by IDC vide item 4 on 30.4.2007). Commencement of construction activities would mean concrete laid in foundation trenches for the structure covering at least 20% of the plot area. However, in cases of plot allotments prior to 2.6.2004, allottees would be required to commence production activities within a period of five years. The allottee shall intimate by registered letter to the Corporation about the activities after commencement of construction, completion of construction and commencement of production activities in the plot which would be recorded subject to the verification by concerned Sr. DGM / SRM / RM.
Note : In cases where lease-deed of plot has been executed or possession of plot is taken over / deemed, prior to declaration of area as developed then, the period for commencement of construction activities, completion of construction activities and commencement of production activities will be considered from the date of declaration of area as "Developed". (Amended as per IDC decision taken vide item 3 on 20.05.2004)
	DELEGATIONS FOR ALLOTMENT OF LAND	22 (i)	Allotment shall be made in the following manner: Industrial plots - The Sr. DGM / Sr. RM / RM shall have full powers for making allotments of planned industrial plots of any size in the industrial area for setting up an industry on receiving complete applications as per these rules . The copies of allotment letters shall be sent to all members of DLAC and concerned District Collector for information. However, for technical advice about the project and land requirement, applications may be referred to Head Office.
		(ii)	All other type of allotment of plots shall be made by Sr. DGM/Sr. RM/RM as per policy decided by the Corporation from time to time.
(Substituted as per decision taken by IDC vide item 12 of the meeting held on 13.11.2000 and vide item 21 & 29 of the meeting held on 13.11.2000.) 23* TIME EXTENSIONS in favour of allottees of plots allotted for industrial/ commercial/ residential/ other purposes may be granted as per delegation provided as hereunder. (Inserted as per IDC decision taken vide item 4 on 16.9.2003) 23-A : Time extension for payment of development charges. On request of the allottee, time extension for payment of balance development charges/ instalment of development charges beyond prescribed period, may be granted on payment of interest at the prescribed rate. Delegations in this regard are as under: (1). Sr. DGM / Sr. RM/ RM are empowered to grant time extension upto two years if, plot is located in unsaturated industrial areas and upto one year if, plot is located in saturated industrial areas, from the scheduled date of payment of last instalment with interest thereon for the extended period beyond the due date of payment, irrespective of increase in rate of development charges of the area. (Amended as per IDC decision vide item 5 on 20May 2004) (2). E.D. may grant the extension with interest, for a further period of two years and three years in saturated and unsaturated industrial areas respectively. (3). M.D. shall have full powers for granting the extension with interest. 23-B : Time extension for payment of other dues and removal of breach of terms and conditions of lease deed / allotment letter. In case of default in payment of other dues ( economic rent, service charges etc. ) and breach of terms and conditions of lease deed / allotment letter, unit heads shall have full powers to grant the extension for payment of dues with interest / regularisation charges and / or removal of breach in all industrial areas. (Substituted as per decision taken vide item 8 of the meeting held on 27.12.2002.) 23-C Time extension for delay in commencement of production activity or activity for which the plot is allotted: On the request of plot allottee time extension for commencing the activities may be granted on payment of retention charges, as under: 1. Unit heads (Sr. DGM / Sr. RM/ RM) are delegated powers for granting the extension for a maximum period of 2 years at a time and not exceeding 5 years beyond prescribed period of 3 years or till the industrial area is declared saturated, whichever is later. 2. Executive Director with retention charges can grant further extension upto 5 years. 3. M.D. shall have full powers for allowing extension, with retention charges. 4. The above provisions shall not apply to those allotment cases where a specific condition for non levy of retention charges has been stipulated in the allotment letter itself. 5. In case applications of an NRI or overseas company is pending for FIPB clearance at the time of allotment of plot, extension may be granted, without retention charges till FIPB clearance of his case or for six months beyond the scheduled period, whichever is less. 6. Rate of retention charges will be @ 0.50% of prevailing rate of development charges per sqm. per quarter or part thereof. The retention charges shall be calculated at the rate applicable on the date of payment made to RIICO. (Rate reduced as per IDC decision taken vide item 3 on 20 May, 2004) 7. If the allotted plot is transferred prior to commencement of production in plot then the transferee shall be required to commence production activity as per schedule allowed to transferor and extension beyond the original schedule may be granted on payment of retention charges as per rules. However, before issuing permission for transfer of plot prior to commencement of production activity, transferee of plot / part plot shall be asked to submit his program for commencement of production activity and accordingly retention charges shall be demanded from the transferee. For the plot transferred after commencement of production there shall be no limitation for re-starting the production activity. But in case of transfer of part vacant land of the plot, transferee shall be allowed to commence production within three years from the date of issue of transfer order of vacant plot. (Period amended as per IDC decision taken on 20.05.2004) 8. The rules will also apply to the allottees of residential & commercial plots for granting time extension and levying retention charges. However, rate of development charges for computing retention charges shall be 1.5 times of industrial rate prevailing in the area, in case of residential plots and 2 times the prevailing industrial rate for commercial plots. (Inserted as per IDC decision taken vide item 8 on 27.12.2002 and item 22 on 13.11.2000 and office order issued vide No. IPI/P-6/25/iii/1201 and 1922 dated 24th November 2001 and 24th February 2003 after approval of M.D. Inserted the above notes (1 to 4) as per approval accorded by IDC vide item 23 of the meeting held on 21.2.98, item 14 dated 16.9.2000, item 8 held on 25.1.2001, item 13 of the meeting held on 10.12.2001 and items 25 & 34 held on 23.9.2002.) 9. In cases of land allotment made after 9.5.2005, time extension for completion of construction / commencement of production activities would be considered on payment of retention charges at prescribed rates, as under: (a) Regional Unit Heads, upon receipt of application from the allottee, may grant the extension for one year at a time and upto the maximum for a period of one year in Category-A, Two years in Category-B and three years in Category-C industrial areas, (categories for this purpose to be decided with the approval of CMD), from the stipulated date for completion of construction activities and commencement of production activities (as the case may be), on payment of retention charges @ 0.75% and 0.5% respectively of the rate of development charges prevailing in the area per sqm. per quarter delay. In case Regional Unit Head does not grant such extension applied for, then allottee may appeal to ED against such refusal within 15 days of the refusal. (b) Further extension beyond that granted by Regional Unit Head as above may be granted by the ED RIICO in HO on receipt of application from the allottee for one year at a time and upto the maximum for a period of two years in Category-A, three years in Category-B and five years in Category-C industrial areas, (categories for this purpose to be decided with the approval of CMD) for completion of construction activities and commencement of production activities (as the case may be), on payment of retention charges @ 1% and 0.75% respectively of the rate of development charges prevailing in the area per sqm. per quarter delay. No further extension beyond the maximum periods specified here in above would be granted and that at the end of such extended period if the condition (completion of construction activities/ commencement of production activities) has not been met, then the plot would be liable for cancellation. In case ED does not grant extension then allottee may appeal against such refusal within 15 days of the order of refusal and such appeals would be put up to IDC for consideration. (c) Unit Heads shall issue notice as wake up call to plot allottee six months before expiry of the stipulated/ extended period for completion of construction activities/ commencement of production activities. The allottee may be advised to either fulfill the condition of completion of construction activities/ commencement of production activities by the stipulated time, or to get the stipulated period extended from competent authority as above with payment of retention charges, failing which the plot would be subject to cancellation. (d) Application for extension would be decided by the competent authority within a period of 30 days from the receipt of application. (Inserted as per IDC decision taken vide item 7 on 25.04.2005) 10. Computation of retention charges would be done as per the rate prevailing on the date of payment made by the allottee. (Inserted as per IDC decision taken vide item 6 on 16.3.2001) 23-D : Waiver / reduction in interest / retention charges / other charges : The cases of waiver / reduction in various charges shall be decided by the following committees: (i) Committee - I comprising of Advisor (Infra), Advisor (A&M), FA, all 3 GMs, Addl. G. M. (Civil) and Company Secretary (Convenor) under chairmanship of Executive Director shall decide the following cases of waiver / reduction, having financial implication upto Rs. 2,00,000/-: ( a ) Interest on outstanding development charges, economic rent and service charges. ( b ) Retention charges ( c ) Rent / interest on rent of building let out by the Corporation ( d ) Penalty in water bills due to non payment in time. ( e ) Premium/ interest on premium levied upon allottee for sub-letting the premises. ( f ) Penalty on service charges for non-payment of service charges in time. The Committee shall have quorum of 3 officers. (ii) Committee-II comprising of Advisor (Infra), Advisor (A&M), FA (Convenor), all 3 GMs, AGM (Civil) and Company Secretary under chairmanship of CMD shall decide the cases of waiver / reduction mentioned in above para having financial implication more than Rs. 2,00,000/- The Committee shall have quorum of 5 officers. However, CMD may also exercise the powers without Committee's recommendations in deserving cases for reasons to be recorded in writing. ( iii ) The Committee-II under chairmanship of CMD shall also decide the following matters / cases irrespective of amount of financial implication involved : ¨ Transfer premium for transfer of part land if the unit is exclusively financed by RIICO by way of term loan and the loanee intends to clear term loan dues under one time settlement by way of sale of part land under Rule 17B. ¨ The cases of charging simple interest on outstanding dues of plot / shed allotted before 30.9.75 and to waive recovery of panel interest or grant rebate in rate of interest on outstanding dues of plot / shed, if allottee is prepared to pay all the outstanding dues in lump sum. ¨ The cases pending in the courts for out of court settlement with parties. CMD is also authorised for giving delegation / special powers to SRM/RM for deciding the cases in industrial campaigns. (Inserted as per IDC decisions taken vide item 12 on 23.9. 2002 & amended vide item15 on 6.6.05). 23-D-1The retention charges for the period during which the allottee could not commence or carry the activities on allotted plot in view of court stay or decision given by a competent court, shall be waived with the approval of the CMD. (Inserted as per IDC decision taken vide item 12 on 4.9.2003) * 23-E Exempting allottees of industrial plots from payment of retention charges for the period during which plot / shed remained on rent. In cases of industrial allotments where the Corporation has permitted for sub-letting of the plot / shed, in advance, prior to commencement of production activities, retention charges shall not be levied for the period of sub-letting, in case of delay in commencement of production activities by the allottee. * Inserted as per decision taken by IDC vide item 13 of the meeting held on 30.6.2003.