Multiplex Malls in Punjab - Property in Punjab

Conditions at the time of submission of the project
Definition of Multiplex as provided in the Scheme for Development of Multiplex Complexes notified by State Government on 8.9.2003 will be followed. However, minimum requirement of land will be 2 acres outside Municipal Areas and 1 acre within Municipal limits.
Fixed Capital Investment, including land cost, should be Rs.100 crore or more. In case more than one Multiplex is to be set up, their investment may be clubbed and combined investment should be more than Rs.100 crore.However, investment including land cost, in individual multiplex will not be less than Rs.40 crore.
Details of land/locations will be given by the Promoter.

4.2 Conditions of LOI after fulfillment of which Agreement is to be signed.

In principal approval of the financial institution/bank for funding the project may be given. If the project is to be set up with own funds, the details of the same may be provided.
Proof of ownership of land or Development Agreement with Owner of land in the name of the Company may be given. The land can be either commercial, self acquired agriculture land or self acquired industrial land or industrial land allotted by Government or one of its agencies. In case of agriculture land, the promoter will get the land use changed from the Department of Housing in accordance with Periphery Policy or any other Policy framed by the Government for this purpose. In case of industrial land, change of land use is to be got done by the Promoter in accordance with policy for change of land use dated 4.3.2005 or any other framed in the regard by this State Government.

4.3 Time-period

The Project will have to be implemented in 3 years from the date of signing of agreement by the Company with State Government, unless otherwise extended for a period of not more than 1 year by the Government on the request for the reasons to be recorded in writing.

4.4 Concession

4.4 (a) Fiscal

100%exemption from entertainment tax for a period of 10 years.
50% exemption in electricity duty at current rate for a period 5 years from the date of release of connection by PSEB for the project of Multiplex. This concession shall be admissible only to the Developer of the project during its construction period and also to such portion of the property which is retained by the Developer. This will not be admissible to the subsequent purchase(s)/Franchise etc. of the property within the Multiplex complex.
Freedom to fix ticket rates in relaxation of Punjab Cinema (Regulation) Rules, 1952 as provided in the notification dated 8.9.2003 issued under the Industrial Policy, 2003.
Power tariff rates as applicable to Industry will be applicable, subject to approval of the Punjab State Electricity Regulatory Commission as provided in the notification dated 8.9.2003 issued under the Industrial Policy, 2003.

No transfer fee except stamp duty shall be leviable on the first sale of shopping area by the Developer of the Multiplex. However, on subsequent sale transfer fee as applicable at the time of sale shall be applicable.

4.4 (b) Non-fiscal

FAR of 3, ground coverage of 50% and height up to 45 mtrs. Subject to Air Safety Regulation, Traffic Circulation, Fire Safety norms and Parking norms as per local byelaws.
Exclusion of basements from FAR for parking only. Atrium area to be counted once at ground floor level for the purpose of FAR.
Licence for hotel, restaurant and pub/bar to be granted by concerned department.
Conversion of Land Use will be allowed by the Department of Housing and Urban Development from agriculture to proposed use on payment of conversion changes and in accordance with Periphery Policy or any other policy framed by the State Government. In case of industrial land, self acquired or allotted by the State Government or any of its agencies, the conversion will be allowed by the Department of Industries in accordance with policy for Change of Land Use notified on 4.3.2005 or any other policy framed in this regard by the State Government. If the land use is allowed, the existing allottee shall have to pay conversion charges (which will include license fees, external development charges and change of land use charges) as fixed by the Department of Housing & Urban Development from time to time.
In lieu of conversion charges, the allottee will have an option to surrender equivalent land free of cost from same plot to the authority that originally allotted land. Such land would have equivalent or better road front and access compared to the land meant for Multiplex. The authority will be free to use the land so surrendered for commercial or any other purpose and the returns therefore will be deposited in the Industrial Infrastructure Development Fund.
Relaxation under Shops & Commercial Establishment Act by the Labour Department to permit 24 hour operation.
The project shall be exempted from PAPR Act, 1985 to the extent of obtaining the licence. Approval of layout and Building Plans by competent authority shall be deemed to be a licence under PAPR Act. 1985. However, rest of provisions as Licencee under PAPR Act, shall be applicable, as if a licence has been issued under the PAPR Act, 1985.

4.5 Conditions for grant of Concessions

Period for completion of minimum investment of Rs.100 crores (Rs.25 crore in border districts) (not more than 25% of the cost of project being included as cost of land in each project) shall be 3 years from the date of agreement signed between the Promoter and the Government, unless otherwise extended for a period of the Promoter, for the reasons to be recorded in writing.
The concessions will be restricted to investment in upto 3 acre of land for a particular Multiplex. Construction beyond 3 acres may be counted for investment purpose, but will not be entitled for any concession granted to Multiplexes.
Projects having only shopping malls, without cinema screens will not be included for the purposes of clubbing investment of the projects of the company at different locations to determine the mega project status and will not be eligible for above concessions.
All the projects will fulfill the conditions as laid down in Industrial Policy, 2003 i.e. conditions with regard to minimum number of seats, area, investment etc. as prescribed in the Scheme for Development of Multiplex Complexes.

However, condition of minimum three cinema halls can be relaxed in case the Multiplex is with IMAX theatre.

CONDITIONS & CONCESSIONS FOR MEGA HOTEL PROJECTS;

5.1 Conditions at the time of submission of the Project

Fixed Capital Investment should be Rs.10 crore excluding the cost of land.
Detail of land on which project is to be set up will be given by the applicant. However, the location will comply to local byelaws.

5.2 Conditions of LOI after fulfillment of which Agreement is to be signed

In principal approval of the financial institution/bank for funding the project may be given. In case the project is to be financed by own funds, the details of the same may be given.
Proof of ownership of land or Development Agreement with owner of land in the name of the Applicant Company may be given.

5.3 Time-period

The Project will have to be implemented in 3 years from the date of signing of agreement by the Company with State Government, unless otherwise extended by the Government for a further period not exceeding one year for reasons to be recorded in writing.

5.4 Concessions

5.4 (a) Fiscal

Exemption from electricity duty upto 5% for a period of 5 years from the date of release of connection by PSEB for the project of Hotel.

5.4 (b) Non-fiscal

FAR of 3, ground coverage of 50% and height upto 45mtrs. Subject to Air Safety Regulation, Traffic Circulation, Fire Safety norms and parking norms as per applicable byelaws. Atrium area to be counted once at ground floor level for the purpose of FAR.
Relaxation under Shops & Commercial Establishment Act by the Labour Department to permit 24 hours operation.

5.5 Conditions for grant o Concessions

Change of land use will be allowed by the Department of Housing & Urban Development in accordance with the periphery policy or any other policy formulated by the State Government on the payment of Change of Land Use charges fixed under the policy.Licence fees and External Development Charges will be levied as applicable.
If Hotel is part of a Multiplex, coming up on Industrial Land allotted by a Government Agency, then the Promoter will obtain conversion from the Department of Industries as per the policy framed and issued by the Department of Industries on 4.3.2005 amended from time to time on the payment of charges fixed by the Department of Housing & Urban Development.

CONDITIONS & CONCESSIONS FOR AGRI MEGA PROJECTS

6.1 Conditions at the time of submission of the project

Fixed Capital Investment in the proposed Project would be Rs.25 crore or more.

6.2 Conditions of LOI fulfillment of which Agreement is to be signed.

In principal approval of the financial institution/bank for funding the project may be submitted by the Promoter to the concerned Nodal Agency. If the project is to be set up entirely with own funds, the details of financial resources may be provided.
Details of land on which project is to be set up may be given.

6.3 Time-period

The Project will have to be implemented in 5 years from the date of signing of agreement by the Company with State Government, unless extended for further period of not more than 1 year by the Government on the request of the Promoter for the reasons to be recorded in writing.

6.4 Concession

6.4 (a) Fiscal

100% exemption from payment of Mandi fee, Rural Development Fee and Infrastructure Cess on purchase of fruits & vegetables directly from farmers for processing by the units for 10 years.
75% exemption from payment of Mandi Fee, Rural Development Fee and Infrastructure Cess on purchase of noon-FCI grade food grains, barley and maize (except custom milling of paddy) directly from farmers for processing by the unit for a period of 10 years.
Exemption from basic stamp duty at the current applicable rate on purchase of land for the designated purpose.
Declaration of factory premises of the unit as private Mandi yard and permission for direct purchase of foodgrains/maize/barley/fruits/vegetables required for processing by the unit.
100% exemption on electricity duty on captive consumption of power generated by the unit.
50% exemption on electricity duty on purchase of power from PSEB for 5 years from the date of release of connection.
Link Advance consumption Deposit with the actual consumption of power. However, in the first instance, the unit will deposit ACD at applicable rates.
Supply of power as per normal rates available to continuous processing industry. However, the unit will pay nominal peak load charges.

6.1 (b) Facilitation

Sanction of power connection by Punjab by Punjab State Electricity Board within a stipulated period of 60 days from date of filling of application with them.
Single window clearance for pollution/environment, change of land use, and sanction of buildings and all architectural plans.
Last mile connectivity in respect of metalled road and street lighting from main road to the project site.
Issuance of Licence on Fast Tract for brewing of Beer and Distillation of Grain alcohol.
Treating Agri Mega Projects on par with the IT industry regarding working hours by Department of Labour.
Allotment of land wherever Panchayats are willing, as per the policy of Department of Rural Development and Panchayats.

6.5 Above concessions may be given as a matter of practice in each case. Additional concessions may be considered by the Empowered Committee keeping in view the nature and special circumstances and the size of the project

CONDITIONS AND CONCESSIONS FOR MEGA HOUSING PROJECT

The department of Housing and Urban Development shall be the Nodal Agency for facilitating the projects in additions Department of Industries and commerce may also facilitate the projects.

7.1 Conditions at the time submission of the project

Fixed capital investment should be Rs.100/- crore or more.
Minimum quantum of land for residential project should be:-
1. 100 Acres in Local Planning Areas in the Chandigarh Periphery Controlled Area in the Punjab portion
2. Area as per Zone wise requirement defined in the Housing & Urban Development Department Memo No.18/182/06-6HG2/5598 dated 17.7.2007.
3. The land should be at single geographical location and shall be developed in continuity, public services which already exists such as roads, canals, parks etc. shall not be constructed to break the unity and contiguity of the Project.
4. 50% ownership of the project land at the time of submission of proposal to the Committee headed by CS before it is considered by the Empowered committee.

7.2 Conditions of LOI after fulfillment of which Agreement is to be signed

Ownership of land or Development agreement with Owners of land for atleast 50% of land by the Company before signing of Agreement, along with Agreement of sale for balance 40% of land with land owners in the name of Company having validity of 6 months, which shall be bought by the Company within 6 months . The remaining 10% of land may be acquired by the Government for the Developer, if so requested.
At the time of applying for change of land use ownership documents for atleast 75% of project land.
Copies of agreement of sale/undertaking to purchase 15% of land not later than 6 months.
10% land may be acquired by the State Government on the request of Promoter at their cost only to fill the critical gaps.

7.3 Time-period

The project will have to be implemented in 3 years from the date of signing of agreement by the Promoter with the State Govt. unless otherwise extended for further period of not more one year by the Govt. on request of Promoter for reasons to be recorded in writing.

7.4 Conditions for grant of Concessions

They will have to pay external development charges, licence/permission fee , conversion charges at the rates, notified by the Housing and Urban Development Department from time to time.
The project shall not be advertised/ launched and no money will be collected from general public for allotment of land/plot/flat/any space till such time the layout/Zoning plans are cleared from the competent authority and exemption u/s 44 of PAPRA is issued by the Government.

7.5 Concessions

The provisions contained in section 5(9) of PAPR act, 1995 shall be complied with.
The layout/Zoning plan shall be got cleared/approval from the prescribed authority under PAPR Act, 1995. Subsequently, the building plans shall also be got cleared from the prescribed authority under the Punjab Urban Planning Development Authority Building rules, 1995. In case the project falls within any Municipal area, relevant Municipal Laws and Building Rules shall be applicable and Building Plans shall be approved by the Prescribed Authority under these law rules. However, all such clearances may be given by the prescribed authority within 30 days. The clearance/approval so given may be in accordance with any relaxation granted by the Committee.
The land use change may be allowed by the Housing and Urban Development Department within 30 days as per the Master Plan/Draft Master Plan of the relevant area and as per standard Town Planning practice. In case of land falling under Periphery Controlled Area, land use change may only be allowed in accordance with the Periphery Policy of the State Government and in accordance with the draft Zoning/Layout Plan and Master Plan of the Local Planning Area.
State Govt. may acquire land as per provisions of the Land Acquisition Act, 1894 on requests by the company at their cost subject to the condition that such acquisition shall be limited to only 10% of total area of the project only to fill the critical gaps. The acquisition may be carried out as per the existing policy of the department of Housing & Urban Development and by their Land Acquisition Collector.
The State Govt. may ensure that connectivity to power, roads, accessibility, and communication, civic and other infrastructure up to projects provided within 240 days from the date the same is applied for to the concerned department/agency/authority/local body on fulfillment of various terms and conditions required in this regard at such rate/fee etc. which shall not be less favourable to them compared to similarly placed projects/customers.
High-rise buildings may be allowed subject to clearance from Air Safety Regulations, Fire Safety norms and Traffic Movement.
Permission under the provisions of Punjab Mines and Mineral Act may be allowed within the project area for the works pertaining to development of the project on payment of requisite charges.
Permission under the Punjab State Tube Act, 1954 to dig tube well in the project area for the requirement of the project may be allowed.
The State Govt. may extend the facility of Public Transport System being run by any State Govt. agency to the project area. The State Govt. may also allow them to operate their own public transport system within the project area and also for connecting the project area to the main urban centres nearest to the project area subject to the fulfillment of required terms and conditions in this regard.
The state Govt. may not allow Polluting Industries in the periphery of the project area up to the distance prescribed by PPCB.
The State Govt. may assist them in getting any other facility of requirement for the development of the project.