CHENNAI: In a move that would help hundreds of small-scale units in 21 industrial estates, including those in Guindy and Ambattur, Tamil Nadu government has issued a G.O. to allow 1,271 acres belonging to Small Industries Development Corporation (SIDCO) to be reclassified into ryotwari mania from sarkar poramboke. The order would cover nearly 40% of the 3,500 acres of SIDCO land. Industries were struggling to raise capital from banks due to the land reclassification issue.
Guindy Industrial Estate, India’s first industrial estate, was inaugurated in 1956 by PM Jawaharlal Nehru. Ambattur Industrial Estate was inaugurated in 1958 by PM Lal Bahadur Shastri. Both were leased to entrepreneurs for 99 years. In 1987, TN Governor PC Alexander promised sale deeds to all the plot owners. While sale deeds were issued, pattas were not given. “The issue (that delayed pattas) was land reclassification,” said KV Kanakambaram, president (emeritus) of The Industrial Estate Manufacturers Association.
According to sources, Tamil Nadu Rural Industries Minister T M Anbarasan had set up a 10-member Empowered Committee under Chief Secretary to resolve the issue. The committee submitted a report and the G.O. was issued based on the report.
President of IEMA Gireesh Pandian said the association has been fighting for the issue since 2007. Other land parcels in Guindy and other estates that are not part of the present G.O. will be taken up in the next empowered committee meeting soon. “Around 250 industrial units in Guindy have been operating without pattas. We could not mortgage our property nor enhance bank loan limit. The reclassification move would give us a major respite as we recover from the Covid onslaught,” Gireesh said.
Factfile
Lands reclassified
85.39 acres of land in Guindy Industrial Estate
161 acres of land in Ambattur Industrial Estate
1,029 acres of SIDCO land in 21 industrial estates across the state