KARACHI, Oct 6: The Sindh government has decided to give more time to owners of 350 industrial plots in small industrial estates of the province who were issued notices for cancellation of allotments on charges of non-utilisation, sources revealed on Saturday.

A grace period of six months will be allowed for constructing factories on these plots. Non utilisation fee accumulated over the years will be waived and the defaulters will be asked to pay the penalty only.

The decision is subject to the approval of Board of Directors of Sindh Small Industries Corporation (SSIC), the sources said.

The grace period and waiver of non-utilisation fee has been granted on the recommendation of chambers of commerce and industry of the respective industrial estates.

The sources did not disclose the amount of non-utilisation fee accumulated over the years but said that these plots had changed hands many times through cancellation and re-allotment.

The action against owners of unutilised plots was initiated by Secretary Industries Rasool Bux Phulpoto after reports that some people instead of constructing factories were using these plots for real estate business, which was hampering the process of industrialisation in the interior Sindh.

However, the secretary industries told Dawn that the owners were granted the waiver after taken into accounts the reasons submitted by them as genuine. These reasons include lack of capital, illness and owners absence abroad which were duly endorsed by the chambers of commerce and industry of the respective towns, he added.

Under the rules a factory or business has to be established on an industrial plot within two years of its allotment.

The provincial government has also launched an inquiry into allotment of plots made during the 1990s. There is shortage of land in major towns and it has been decided to ensure that the industrial plots are utilised for the purpose.

It has also been decided to regularise all allotments made on political basis or on concessional rates in the past asking the owners to pay the market price prevailing at the time of allotment otherwise their plots would be cancelled.

The sources disclosed that small industrial estates in interior towns had been encroached by utilities departments and traders by setting offices and shops. The SSIC is contemplating action against the encroachers to vacate the industrial land.

The government offers industrial and commercial land at 25pc and 15pc less than of market price, respectively.