Karnataka govt plans land policy for prime industrial projects | Bengaluru News – Times of India

BENGALURU: The state government is considering the idea of allotting land to important industrial projects through a lease-cum-sale agreement of 10 years instead of the current 99 years. Reducing the duration of the agreements will make properties of the Karnataka Industrial Areas Development Board (KIADB) in tier-2 and 3 cities more attractive to companies and this, in turn, may help draw more private investment to the state.
The 10-year model will be offered to only projects deemed “critical” and “prestigious” for the state. Last month, the commerce and industries department said in an order that a six-member committee under chief secretary P Ravi Kumar would identify such projects, which may be proposed or already in development.
The government had previously approved the 99-year lease model for companies and projects that required more than 2 acres. These included central and state PSUs, government joint ventures, single-unit complexes, housing complexes, supermega enterprises and/or projects identified as very important. The latest proposal retains the list.
“It was approved to constitute a committee of officers, headed by the chief secretary, to identify projects as critical and prestigious to the state government and the same should be approved by the cabinet for execution of lease-cum-sale deed for 10 years instead of 99 years (sic),” the order states.
Officials believe that the 10-year model will make companies take notice of more than 7,310 acres of developed land at 21 industrial areas of KIADB and 7,000 acres under acquisition. “We have land at premium locations in the state, but are having a hard time persuading industries to set up units in tier-2 and tier-3 districts,” said a KIADB official. KIADB has invested crores in districts like Chamrajnagar, which is struggling to find takers for 500 acres of vacant land.
There is speculation that under the new policy, the committee may set an attractive rate to encourage companies to buy the allotted KIADB at the end of the lease term. But the commerce and industries department said that the proposal for adopting the 10-year model was in early stages of discussion and nothing had been finalised. “The committee has not held its first meeting yet. The plans are at a very nascent stage,” said industries commissioner Gunjan Krishna.
Industries minister Jagadish Shettar said that only informal discussions had taken place. “We have considered the possibilities of the 10-year lease-cum-sale model, but are yet to make a final decision. The matter must come before the cabinet if we are to change our land use policy,” he added.

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Sagar Biswas

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