Institutes of eminence: Maharashtra government grants tax sops to Jio Institute

After getting grants from the Union HRD Ministry, Reliance Foundations’ Jio Institute, has received supports from Maharashtra. As state government has extended its supportive hands to provide buildable area and fiscal sops to greenfield educational institutes which gained the ‘Institute of Eminence’ status by the Centre.

Months after HRD ministry has granted the status to Reliance Foundation’s Jio Institute, which was proposed to come up on an 800-acre land in Mumbai Metropolitan Region’s Karjat taluka. While the ministry has cleared six such proposals, officials told Indian Express, the Jio Institute is the sole greenfield project among these.

The remaining five are IISc-Bengaluru, IIT-Delhi, IIT-Bombay, Birla Institute of Science and Technology and Manipal Academy of Higher Education. This Jio institute had received flak for getting the status of Institute of Eminence, even before the institute started functioning. The centre had imposed a condition that this Jio Institute will start functioning from 2021. While its construction work yet to start in Mumbai.

According to the Indian Express, “The Cabinet on Tuesday extended sops and concessions being offered to developers building integrated townships in semi-urban belts in the state to such institutes. Officials admitted that the Jio institute, being the first greenfield project in the category, will be the immediate beneficiary.”

Also Read: Proposed Jio Institute gets notability status with IITs and IISc

Replicating the formula being used in the case of integrated townships, they will be entitled to a total floor space index (FSI) of 1 on the plot’s gross area for construction purposes. FSI, also known as floor area ration, defines the extent of construction permissible on a plot. It is the ratio of built-up area to the total plot area. In line with the township policy, the perk will be available to any project being set up over a plot area of 40 hectares or more. While townships can also avail additional FSI depending on their plot size on payment of premium to the government, this has so far not been extended to IOEs.

While the Maharashtra government has agreed in principle to grant special concessions, it includes deemed conversation for agricultural use. They will also be eligible to 50 per cent exemption in the payment of development charges for the construction.

Apart from this special concession, the education department has also given some concessions in payment of stamp duty for IOEs. But, if the report is believed, the revenue department has strongly opposed it.

Education Minister Vinod Tawde told Indian Express, “The whole idea is to encourage organisations to set up world class institutes in the state. The government will back such projects.”

Following the Cabinet nod, the government has appointed a ministerial sub-committee to work out the remaining modalities, and resolve issues raised by the revenue department.

In an official communication, Tawde’s department has justified the perks citing “intense competition” among states to host IOEs. The government has, however, stated that all the perks will be withdrawn in case the Centre revokes the IOE status. Further, the FSI concessions will be chargeable at market rates if the institute fails the complete the construction work within three years.

Also read: Jio Institute to extrapolate Rs 100 crore revenue from student fees in the first year