STOCK MARKET BSE NSE

Karnataka industries to get land on 10-year lease, can own property after 2 years

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.

Published: 02nd January 2022 06:14 AM  |   Last Updated: 02nd January 2022 06:14 AM   |  A+A-

electric furnace, steel factory, steel industry

Electric furnace in a steel factory (File Photo | Reuters)

By Express News Service

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.


TAGS
Karnataka

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp