PointersIncentives and expectationAt present, industries that relocate out of city limits are granted an FSI of 1.2The proposed FSI will be 2.5 or even higherCaptains of industry are seeking ready infra at relocation sitesGandhinagar/Ahmedabad: The Gujarat govt is considering a proposal to grant a minimum double FSI (floor space index) to industries located within cities to move outside city limits. Besides, charges levied for conversion and FSI changes are also expected to be waived, top sources in the state govt said.On Monday, the Gujarat govt announced the THRIVE (Transition for Harmonized Relocation and Inclusive Vibrant Economy) scheme, loaded with incentives for industries located within municipal corporation areas to shift outside city limits.“The officials of industries and mines, urban development, and finance departments have begun consultations to determine exactly how much FSI will be granted to industries that opt to relocate under the THRIVE scheme,” said a top source in the govt. “But the govt has taken an in-principle decision that a minimum double FSI will be granted to such industries.”At present, industries that relocate outside are granted an FSI of 1.2. “The proposed FSI will be 2.5 or even higher to encourage industries to relocate outside city limits,” the source said.The industry has, however, reacted cautiously to the proposal, saying that infrastructure at the relocation site is a prerequisite for the scheme’s success. Also, industries would prefer not to be relocated too far from cities, said industry sources.Ajay Patel, the chairman of the GIDC committee of the Gujarat Chamber of Commerce and Industry (GCCI), said, “In Ahmedabad’s Naroda, Vatva, Odhav and Kathwada GIDCs, nearly 5,000 industrial units operate, reflecting the scale of activity anchored within the city.”Patel said, “The state has developed estates farther away, such as Saykha, but not many units have shifted from the city, mainly due to infrastructure issues.”He said, “The practical path is to establish a new facility in the new estate, stabilise production, workforce and supply chains, and only then phase out the older unit.”That transition demands certainty, timelines, and adequate support, Patel said.He added, “If the govt wants a successful move, it must provide the infrastructure and the time window that industry realistically needs.”Ankit Patel, a former president of Vatva Industries Association, said, “If MSMEs are given an option within 100km of the city with environmental infrastructure and faster regulatory clearances, then relocation will be a success.”A director of a leading company said, “The focus must shift from merely allocating land to delivering industry-ready infrastructure — power, water, roads, drainage, connectivity, and clear regulatory support.”Some announcements made in the policy under the THRIVE scheme include a wage support subsidy of Rs 5,000 per employee per month for six months, and a capital subsidy for setting up industrial parks and common environmental infrastructure facilities.
