The allotment of land under these rules shall be made on the following conditions:-
(a) Land allotted under these rules shall be used only for the purpose for which it is allotted. However, the allottees may utilize 2% of the allotted area or 10 hectare of land whichever is less for storage of raw material, storage of finished goods, labour quarters and factory shed.
(b) The allottee shall have to utilize 50% of the land for plantation within two years from the date on which possession was handed over and the balance shall have to be utilized for plantation within next one year otherwise the allotment shall deemed to have been cancelled automatically.
(c) The allottee shall be liable to make payment of all taxes, which may be leviable under the appropriate laws.
(d) The allottee shall abide by all the terms and conditions of these rules and other applicable laws as amended from time to time.
(e) The allottee shall give preference to the local residents of the area in employment.
(f) The alottee shall use the allotted land himself and shall not transfer/sub-lease the land.
(g) It shall be compulsory to adopt micro irrigation management system as per latest technology.
(h) The allottee shall not make any construction of permanent nature without obtaining prior approval of the allotting authority.
(i) Allottees other than Companies shall sell the produce to the Company situated in that zone at the minimum support price as fixed by the Bio-fuel authority.
(j) The Company shall purchase the produce from the other allottees situated in the zone at the minimum support price fixed by the Bio-fuel authority.