BENGALURU: The state government is proposing changes in provisions of the Karnataka Industrial Area Development Board (KIADB), which will allow handing over of land to industries on a 10-year lease, instead of the present 99 years, and to sell properties to companies once they run their units successfully for a minimum of two years.
The changes were proposed after talks with senior officials of the industries department and other stakeholders in August and September, said Large and Medium Industries Minister Murugesh R Nirani.
The minister’s office stated that the state cabinet recently cleared the proposal, while Nirani explained that industrialists are at present hesitating to invest in the state because of the existing policy. “The KIADB in future will allot all land to private industries/institutions on a 10-year lease cum sale basis. Rules are being framed for the new scheme and a full-fledged government order is expected to be issued over the next few days,” he said.“The 99-year lease clause was posing difficulties for industries to get loans, source capital and mortgage leased land. This hampered the flow of investment,” he added.
The new amendment proposes that if any industry runs successfully for two years after getting the land allotted, it will qualify to get a clear sale deed from KIADB, he said. The department will monitor the balance sheet of industries for 24 months and proceed with the sale of land once it is convinced that the unit was being run successfully. “The amendment is expected to encourage industries to expand and invest more as the allotted land will be under their ownership,” Nirani added.