BENGALURU:
The Karnataka Industrial Areas Development Board (KIADB) will allot the lands to private industries or institutions on a ten-year ”lease-cum-sale” basis, by amending the existing policy, Minister for Large and Medium Industries Murugesh R Nirani said on Saturday.
The move is said to be aimed at addressing the concerns of the industries and reluctance among many investors to make investments in the state due to the existing policy.
”Rules are being framed for the new scheme and a full-fledged Government Order is expected to be issued in a couple of weeks time,” Nirani said.
”The amendment will encourage the industry for further expansion and investment as allotted land will be under their ownership once they successfully run the company,” he said.
The state cabinet recently cleared the proposal to amend the KIADB provisions.
Before coming to the cabinet at Belagavi, the policy was discussed threadbare with the senior officials of the industries department and other stakeholders during last August and September.
According to the Minister’s office, several major private companies were reluctant to set up industries as KIADB used to allot more than 2 acres of land only on a 99 years lease basis.
Stating that there was never a provision for sale of the allotted land, the release said the earlier clause was posing difficulties for the industries to obtain loan and capital inflow from banks and financial institutions and mortgage the leased land. This had hampered the flow of investments into the state.
Through the proposed amendment, if any of the industrial unit successfully runs for two years soon after the land allotment, they will qualify for getting clear sale deed title from the KIADB without waiting for ten long years, it further said, adding that the department through its officials and experts will monitor the balance sheet of the industry for 24-months that claims to be running the project successfully.
According to KIADB rules, MSME sectors have to set-up an industry and start production within three years from the date of allotment of land. For the large and medium industries the time frame is five years.
