Land lease scheme revised in Karnataka

Chief Minister Siddaramaiah has revised the land lease scheme. He said instead of the existing 99 year lease basis, industrial land/site will be distributed upto two acres to small and very small entrepreneurs by the Karnataka Industrial Area Development Board and Karnataka State Small Industries Development Corporation on 10 year lease/sale basis. This means the budget has removed 99-year lease clause and reintroduced 10 years lease-cum-sale policy for micro and small enterprises up to 2 acres.

Reacting to this, MC Dinesh, president Federation of Karnataka Chambers of Commerce and Industries said, “This is a big relief granted by the state government to the industrialists in the state as the stiff clause of 99 years for allotment of land or plots to industries an infrastructure projects was taking a toll on us, especially after the formation of the state of Telangana.”

Dinesh said, “This was my baby and I am happy the state government has acted in the interest of the industries in the state and this will help the industries flourish in the future. The current move by the government will help in allotment of industrial land to MSMEs. As land is a collateral security, for any small entrepreneur, it can be an easy exit route as well. This will also facilitate loans being taken by industrialists from banks as the land can act as collateral and hence the processing will be faster, especially for small time industrialists. Also the idea of diversion of industrial land is a rubbish claim as there are many checks and balances in place.”

Credits Bangalore Mirror

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