Frequently Asked Questions

SIPCOT stands for the State Industries Promotion Corporation of Tamil Nadu. It is a government-owned organization established to promote industrial development in Tamil Nadu.

SIPCOT facilitates industrial growth by providing infrastructure, land and support services for industries setting up operations in Tamil Nadu

SIPCOT assists investors by offering land allocation, infrastructure development, single-window clearances and various incentives to encourage investment.

SIPCOT develops industrial parks, special economic zones (SEZs), technology parks and sector-specific clusters with essential utilities and amenities for businesses.

Yes, SIPCOT encourages and facilitates foreign direct investment (FDI) by providing a conducive environment and support services to international investors.

SIPCOT supports a wide range of industries, including automotive, IT, textiles, pharmaceuticals, agro-based industries and more.

Interested parties can apply for land allocation by contacting SIPCOT directly or through the official application process outlined on the SIPCOT website.

SIPCOT offers incentives such as tax benefits, subsidies, reduced land acquisition costs and preferential treatment for specific industries.

SIPCOT promotes sustainable practices among industries by encouraging eco-friendly technologies, waste management and adherence to environmental standards.

Yes, SIPCOT provides support through incubation centers, skill development programs and tailored assistance for small businesses and startups

SIPCOT areas boast excellent transportation connectivity with well-developed road networks, access to railways and proximity to ports and airports

 For more information, visit the official SIPCOT website or contact SIPCOT officials through the provided contact details for personalized assistance.

If there is any change in the share holding pattern due to induction of new partners/ share holders and where more than 50% of the share holding is transferred to new persons resulting in total change or substantial change in ownership in the existing allottee unit or transfer to a unit where original promoters of the existing allottee hold less than 50 % shares in the new transferee unit, the same will be construed as Change in Management / Transfer of Leasehold rights.

Yes. The company has created the infrastructure in the allotted plot and envisaged at the of allotment. However transfer of leasehold rights for vacant land will not be permitted.

For units that have been functioning for more than 5 years from the date of commencement of commercial production, the transfer fee is 10% of the differential plot cost.

If the unit is functioning for less than 5 years from the date of commercial production, the applicable transfer fee is 20% of the differential plot cost.

The new incumbent will receive the unexpired portion of the lease term, corresponding to the remaining duration of the previous allottee’s lease.

The "differential plot cost" in the case of a change in management refers to the difference in the cost of the land or plot between the current allotment rate for the company and the original rate at which the plot was allotted, based on the area of the allotment.

No, public limited companies listed on stock exchanges that have commenced commercial production are exempt from paying a transfer fee.

Yes, units that are undergoing revival through a scheme approved by banks, BIFR, NCLT, or other legal forums are exempt from paying the transfer fee.

Sales of assets by an official liquidator or through court/NCLT do not incur any transfer fee.

If the sale of assets is by a bank, FI, listed NBFC, or ARC and an NOC was issued for mortgaging leasehold rights, there is no transfer fee. However, if no NOC was issued, a 10% transfer fee on the differential plot cost is applicable.

No transfer fee is required for joint ventures involving TIDCO, ELCOT, TIDEL, SIPCOT, or other government agencies, provided the change in shareholding is approved by the respective Boards of these agencies.

Transfers of shares among relatives, as defined under the Income Tax Act, 1961 will not attract transfer fees. Relative means (spouse, siblings, lineal ascendants/descendants, etc.), do not incur any transfer fees.

No, the transfer of leasehold rights for vacant land alone is not permitted.

No, the land use pattern of the allotted plot remains unchanged in the event of a change in management or transfer of leasehold rights.

The transfer fees are applicable for changes in management or transfer of leasehold rights where the effective date of shareholding transfer is on or after July 18, 2019.

The allottee can sublease the built-up area for an initial period of five years, which is renewable every three years. 

For group companies: 0.5% of the prevailing plot cost, limited to Re. 1 per sq. ft. per month. For third parties: 1% of the prevailing plot cost, limited to Rs. 2 per sq. ft. per month. * For Siruseri Information Technology Park (SITP): Group Companies: Rs. 2.50 per sq. ft. per month. Third Party: Rs. 5 per sq. ft. per month.

Group companies means the original allottee / sublessee either the company or the major share holders holding more than 50% of the shares in the group company / companies.

The allottee shall apply through online in SIPCOT portal along with the following list of documents:

List of Directors and current shareholding pattern of the company including Holding Company if any, upto individual level duly certified by a Chartered Accountant / CPA. The CA/CPA certificate should have been obtained within 90 days prior to the submission of application for NOC. Copy of renewal of Letter of Acceptance (LA) from MEPZ in respect of SEZ units. Commercial Invoice of Operation with the invoice at least within 90 days before the date of application for those allottees which are functioning as   per the interpretation of the allotment orders, or / and based on the EOT granted by SIPCOT. DTCP approval copy/Certified Engineer approved copy stating that DTCP     application is submitted. Total Built-up area in sq. ft in the allotted plot and the Built-up area in sq. ft already subleased/ to be subleased for which the approval is requested    (with a sketch) Copy of sublease Agreement (if already entered) Shareholding pattern of sub lessee duly certified by CA

Yes, allottees who have commenced production and utilized at least 50% of the allotted area are permitted to construct Plug & Play facilities or warehouses in the unutilized area, subject to applicable subleasing charges.

The revised charges are applicable from August 1, 2019.

The allottee is required to pay the sublease charges upfront on an annual basis.

An NOC (No Objection Certificate) is required to mortgage the leasehold rights of your allotted plot in favour of a bank or financial institution. This is necessary to avail financial assistance for implementing your project.

Applications for NOC must be submitted online through the SIPCOT website. Along with the application, you need to pay a processing fee and submit the necessary documents.

You will need the following documents - Bank /Banks (in case of consortium) sanction letters with full details including terms and conditions as detailed below  (I) The applicant shall highlight the SIPCOT property to be mortgaged with Clause No. and page No. in Bank's sanction letter. (II) In case of consortium of Banks, highlight the SIPCOT's property to be mortgaged with Clause No. and page No. in all Bank's sanction letter. (III) No Due /No Objection Certificate from the existing Bank/Financial Institution. (IV) List of Directors and current shareholding pattern of the companyincluding Holding Company if any, upto individual level duly certified by a Chartered Accountant / CPA. The CA/CPA certificate should have been obtained within 90 days prior to the submission of application for NOC.(V) Copy of renewal of Letter of Acceptance (LoA) from MEPZ in respect of SEZ units. Commercial Invoice of Operation with the invoice at least within 90 days before the date of application for those allottees which are functioning as per the interpretation of the allotment orders, or / and based on the EOT granted by SIPCOT.

The Project Officer reviews your application to ensure all documents are attached. If any documents are missing or dues are outstanding, the officer will notify you to submit the required documents and settle any dues within the specified time. The Project Officer will also prepare a status report on the allotted plot and forward the complete application to the Head Office.

If your application is missing any documents, the Project Officer will notify you to submit the additional documents. You will have 7 days to respond and furnish the necessary information.

If your application is complete, the NOC will be issued within 20 days from the date of submission. If additional documents are required, the process may take up to 30 days.