Bengaluru, Jan 1: Even as 2022 has set in, good news rolls out for the investors and industrialists in Karnataka.
The minister for large and medium industries Murugesh R Nirani is wishing investors and industrialists a Happy New Year through introducing “10-year Lease-cum-Sale” of Karnataka Industrial Areas Development Board (KIADB) land allotted for the industries.
Piloted by Nirani the state cabinet recently cleared the proposal to amend the KIADB provisions where the clear titles (sale deed) of the allotted land will be handed over industrialists once the allottees successfully runs the project just for couple of years.
Addressing the concerns of the industries and reluctance of many investors to make investments in the state due to the existing policy, KIADB in future will allot all the lands to private industries/institutions on 10-year lease cum sale basis. “Rules are being framed for the new scheme and expected to issue a full-fledged Government Order in a couple of weeks time,” said Nirani.
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.
Several major private companies were reluctant to set up industries as KIADB used to allot more than 2 acres of land only on 99 years lease basis. There was never a provision for sale of the allotted land. 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. The department through its officials and experts will monitor the balance sheet of the industry for 24-months that claims to have 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 time frame is five years.
“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,” Nirani maintained.
• KIADB to allot land on 10-year lease cum sale basis
• Govt to amend KIADB’s lease-cum-sale policy
• Govt move to allay concerns of private companies
• Loan and capital inflow from banks and financial institutions can be obtained