Haryana Cabinet Amends Industrial Licensing Policy: EDC Rationalised, Land Use Norms Eased
Chandigarh, March 24: In a significant move aimed at boosting industrial development and reducing regulatory hurdles, the Haryana Cabinet on Tuesday approved a set of key amendments to the Industrial Licensing Policy-2015. The decisions focus on rationalising external development charges (EDC) in agricultural zones and aligning land use provisions for the transport and communication sectors.
The amendments come in response to long-pending demands from the industry, including representations from stakeholders such as the National Real Estate Development Council (NAREDCO) . An official statement highlighted that the changes are designed to bring clarity, consistency, and parity with decisions taken in other sectoral policies, such as the Textile Policy.
Key Amendments at a Glance
| Provision | Key Decision |
|---|---|
| EDC in Agricultural Zones | No EDC for completed/part-completed licensed land if later included in urbanisable zones; EDC applies only to non-completed portions . |
| Infrastructure Charges | Only actual cost of infrastructure facilities (provided by govt. agencies) will be charged for completed areas. |
| Transport & Communication Zones | Industrial colonies and CLU permissions now allowed up to 25% of net planned area in these zones. |
| Expansion to High-Potential Towns | Provisions extended to hyper potential and high potential towns, previously not covered. |
Rationalisation of External Development Charges (EDC)
A cornerstone of the cabinet's decision pertains to the rationalisation of EDC in agricultural zones. According to the official statement, in cases where an industrial licence was granted in agriculture zones located beyond 500 metres of the urbanisable limit, a major relief has been provided.
If a completion or part-completion certificate has already been issued for such land, no EDC will be payable should that land subsequently become included within the urbanisable zone or within 500 metres thereof. For the remaining non-completed portion of such licensed land, EDC will be applicable as per the prevailing norms for industrial colonies in urbanisable zones.
Furthermore, for developers seeking specific infrastructure facilities for already completed or partially completed areas, only the actual cost of such infrastructure—as provided by the concerned government agencies—will be charged. This move is expected to significantly reduce the financial burden on developers and prevent double-charging.
Boosting Land Utilisation in Transport & Communication Sectors
In another major reform, the cabinet approved amendments to enable more efficient utilisation of land within transport and communication sectors. The existing industrial licensing policy has been aligned with the Change of Land Use (CLU) policy dated March 19, 2021.
Under the revised provisions, permission for setting up industrial colonies, as well as CLU permissions, will now be allowed in transport and communication zones of published Final Development Plans. This is permitted for up to 25 per cent of the total net planned area of such zones, facilitating compact and planned development.
This change also extends the applicability of these provisions to hyper potential and high potential towns, which were previously not covered under such norms. This strategic expansion is designed to unlock industrial opportunities in rapidly growing urban centres across Haryana, promoting balanced regional growth.
Industry Response and Implications
The amendments are widely seen as a proactive step by the Haryana government to create a more investor-friendly environment. By addressing long-standing industry concerns regarding EDC and land use consistency, the government aims to streamline the approval process and reduce project costs.
The alignment between the licensing policy and the CLU policy is expected to reduce ambiguity for developers, ensuring parity between different regulatory mechanisms. This clarity is likely to accelerate project implementation and attract further investment into the state's industrial and real estate sectors.
With these changes, Haryana reinforces its position as a leading industrial destination, focusing on policy stability, reduced compliance burdens, and infrastructure-led development.