The Industrial Development Authority (IDA) will provide grace periods for stalled industrial projects that have gone past their implementation deadlines, according to a statement from the Industry Ministry. The move aims to support factories that are struggling to restart operations and to accelerate the completion of those under construction.

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Here’s what the package of new incentives for industrial projects entails:

  • A six-month grace period will be granted to industrial projects that have completed more than 50% of construction works, allowing them to finalize the project, obtain their operation and industrial registration licenses, with a full exemption from delay penalties for the duration of the grace period.
  • A 12-month grace period will be given to projects that have not yet started construction or have completed less than 50% of the work but already hold a building permit. These will be exempt from penalties for the first six months only, after which standard fees and penalties will apply.
  • An 18-month grace period will be granted to projects that have not yet obtained a building permit or begun construction to give them time to secure both building and operating licenses, as well as an industrial record. These projects will also be exempt from penalties for the first six months only, with standard fees applied afterward.
  • Reinstatement of withdrawn land: The decision also allows investors to reapply for land plots even after land allocations were withdrawn but not yet reallocated or offered to other investors, provided they pay the due penalties.

Manufacturers must submit an application to the authority before 30 April 2026 to qualify for the new incentives and be exempt from delay penalties and standard fees for not completing their projects on time. Once approved, the grace period will begin immediately. The move comes in response to requests from manufacturers with struggling projects, the statement said.

How are the fees and penalties calculated? Standard costs and delay penalties will be calculated according to the IDA’s governing rules and decisions. In case of failure to meet the new deadlines, land plots will be reclaimed, and legal measures will follow.

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