The State Government has imposed stringent rules to ensure that up to two acres of land allotted by the Karnataka Industrial Areas Development Board (KIADB) and Karnataka State Small Industries Development Corporation (KSSIDC) for micro, small and medium enterprises on the lease-cum-sale basis are used for industrial purposes only.
The order issued by the Government said that the lease-cum-sale period should be fixed at 10 years from the date of execution of lease-cum-sale deed, even if the project is implemented and 50% or more of the area allotted has been utilised.
Further, enterprises have to clear all the dues before execution of absolute sale deed. After the execution of sale deed, the land/shed should be utilised only for industrial purposes, said the four-page order.
As per the order, Micro, Small and Medium Enterprises would be defined as per MSMED Act, 2006. Micro enterprises should invest ₹ 25 lakh on investment on plant and machinery, small enterprises ₹ 25 lakh to ₹ 5 crore and medium enterprises ₹ 5 crore to ₹10 crore.
Investment on equipment should be up to ₹ 10 lakh by micro, ₹ 10 lakh to ₹2 crore by small and ₹2 crore to ₹ 5 crore by medium enterprises.
On July 5, the State Cabinet has cleared an amendment to the KIADB rules for allotting lands on 10-year lease-cum-sale instead of 99-year lease. The decision would trigger demand for industrial sheds across the State.
