Land continues to be critical in new investments everywhere and Karnataka had realised this long ago. Despite controversies in acquiring and allotting land for projects, this long established policy of the State remains the corner stone of industrial development. In order to implement this policy, the Karnataka Industrial Area Development Board was set up way back in the year 1966 under the KIADB Act.
As a follow-up of the decisions arising out of the investors’ conclaves and the demands at the Pravasi Bharatheeya Divas held in January as also the MoUs entered into by the government, many investors pointed out the need for ensuring the basic necessity of allotting land and issuing ownership titles like sale deed. Corporates like the Metro Rail Corporation has also been seeking sale deeds in their favour which will arm them with the ownership to seek loan assistance from banks and financial institutions to develop the land allotted. Many realtors have also been showing their willingness to start affordable housing projects provided the land is allotted with the proviso to transfer the ownership within a specific period. Meanwhile, the Union Budget presented on February 1 extended interest concessions to affordable housing projects and sought the States’ support by providing land to such projects.
Important changes in the policy decisions for land allotment by KIADB are:
Instead of the existing 99-year lease, the new rule will be for allotment on ‘lease-cum-sale’ basis and the sale deed will be issued soon after completion of the project.
The State government has initiated steps to amend the Industrial Policy for the period 2014-19 to allot land on lease-cum-sale basis.
The change in rules will be retrospectively effective from August 2014.
The KIADB will also allot lands for projects undertaken by State and Central public sector undertakings and joint ventures between them on lease-cum-sale basis.
The new rule will also remove the lacunae existing as regards housing projects, in particular regarding ownership of land.
Possible impact on housing, and affordable housing in particular.
Considering the aim of ‘housing for all’ by 2022, houses to slum dwellers and weaker sections can be given only by making available land for building construction in a large way. For such a massive push, Karnataka’s initiatives are sure to play a vital part. This will also enable Karnataka to be a leader in innovative development plans. Property record-keeping through the ‘Bhoomi’ project and further digitalisation, coupled with the ‘Sakala’ programmes of records management online already in place, will aid in the ‘sale deed issue’ initiative.
