The amendment was issued through G.O. (Ms.) No. 129, Housing and Urban Development Department, dated June 29, 2026.

Rule 47(8)

Rule 47(8) requires industrial layouts to reserve 1% of their total area, excluding roads, for public purposes. Under the existing arrangement, 0.5% is generally transferred to the local body, while the remaining 0.5% is transferred to TANGEDCO—or to the local body when TANGEDCO does not require it.

These spaces may support facilities such as electricity infrastructure, water supply, drainage, sanitation and other essential public services.

The Amendment

Under the new amendment, an industrial layout or industrial estate developed by any of the following need not transfer the 0.5% portion to the local body:

• A government department
• A government agency
• A joint venture involving the government

However, this land cannot be used freely for factories, warehouses or commercial construction. It must continue to be reserved for public purposes and maintained by the applicant.

In simple words, the amendment changes who holds and maintains the land—not why the land is reserved.

Does the exemption apply to private industrial layouts?

No.

The notification does not provide a general exemption to private developers. Private industrial layouts must continue to follow the existing transfer requirements under Rule 47(8).

The relief is specifically limited to projects developed by government departments, government agencies or their joint ventures.

To Sum Up

Government agencies such as SIPCOT and TIDCO can now retain and manage the specified public-purpose land within their industrial estates instead of transferring it to the concerned corporation, municipality or panchayat.

This may simplify land management and project execution. At the same time, responsibility for maintaining the reserved area remains with the government agency or joint-venture applicant.

The change to Rule 47(8) is mainly meant to make government industrial projects easier to manage.

For private developers, nothing changes. They must still follow the same rules and transfer the required portion of land to the local body or TANGEDCO as before.